“Economic Reforms Are Working, But Businesses Are Yet to Feel the Full Benefits” — NECA DG
By Shirley Murphy | GLEBM News
Nigeria’s economic reforms are beginning to produce encouraging macroeconomic indicators, but the gains have yet to translate into meaningful relief for businesses operating on the frontlines of the economy, according to the Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale Oyerinde.
In this exclusive interview with GLEBM News, Oyerinde discusses the realities confronting Nigerian employers amid rising operating costs, the urgent need for reliable power and business-friendly regulation, the opportunities and risks presented by the African Continental Free Trade Area (AfCFTA), NECA’s efforts to bridge the country’s skills gap through employability and artificial intelligence programmes, and why resilience remains essential as businesses await the full impact of ongoing economic reforms.
He also outlines his vision for NECA over the coming years and explains why strengthening the private sector is critical to creating jobs, attracting investment and driving sustainable economic growth.
Businesses are still grappling with rising production costs, inflation, exchange rate volatility and energy challenges. From NECA’s perspective, what policy actions should government prioritise to restore business confidence and improve competitiveness?
The current realities are obvious to everyone, including government. We commend institutions like the Central Bank of Nigeria for presenting data that reflects the true situation. While there has been marginal recovery in some sectors, particularly agriculture, the real sector and the services sector are still experiencing contraction.
The reasons are clear, high energy costs, foreign exchange challenges and regulatory bottlenecks. Organised businesses have spent over ₦1 trillion on alternative energy alone, excluding what is paid to electricity distribution companies. Businesses are spending enormous amounts on diesel and solar power while many are also sitting on billions of naira worth of unsold inventory.
Government should deliberately focus more on the real sector through improved infrastructure, sustainable energy and policies that remove unnecessary business bottlenecks. Reliable electricity remains fundamental because no country industrialises without power.
The decentralisation of electricity generation is a commendable policy, but implementation must be accelerated so states can fully take advantage of it.
Regulators also need to become more business-friendly. Regulation should encourage investment and economic growth while still ensuring compliance. Government must address the internal contradictions within its regulatory institutions if businesses are to thrive.
With the African Continental Free Trade Area (AfCFTA) creating new opportunities, how prepared are Nigerian businesses to compete across Africa? What support do employers need to maximise this agreement?
AfCFTA is one of the greatest opportunities available to Nigeria, but it could also become our greatest challenge if we fail to prepare adequately.
Nigeria has the population and the production potential. If we maximise those advantages, we will industrialise, expand exports, create jobs and generate more tax revenue.
However, if we fail to strengthen our industries, other African countries will simply use Nigeria’s huge population as a market for their products.
That is why government must continue supporting the real sector. If Nigerian manufacturers continue producing at significantly higher costs than competitors in other African countries, imported products will naturally become cheaper than locally manufactured goods.
Supporting businesses is not charity, it is enlightened self-interest. Strong businesses create jobs, pay company income taxes and employees also contribute through Pay-As-You-Earn (PAYE) taxes. A thriving private sector also helps reduce unemployment and insecurity.
Another important issue is value addition. Rather than exporting raw commodities like cocoa, Nigeria should process them into finished products such as chocolate before export. We must also build confidence in locally manufactured products and encourage Nigerians to patronise them.
Employers often complain about the widening gap between graduates’ skills and industry requirements. What is NECA doing to bridge this gap?
Skills development remains one of our core priorities. NECA currently runs a robust employability programme. One component is our Technical and Vocational Skills Development Programme, implemented in partnership with the Industrial Training Fund (ITF). The programme provides practical vocational training to young Nigerians because many graduates leave school without sufficient hands-on industry experience.
The second component is our structured job fairs. Before candidates participate, they undergo weeks of employability training to prepare them for the labour market. Only participants who complete the programme successfully are matched with employers seeking qualified talent.
Within the limits of our resources, these programmes are helping to bridge the skills gap.
NECA has also invested significantly in digital skills. Can you tell us about those efforts?
Through our collaboration with Microsoft and the International Organisation of Employers, we launched an AI Fluency Programme using Microsoft’s learning platform. As of June, 101,764 Nigerians had registered for the programme.
More than 94,000 participants successfully completed all six learning modules and received certification, demonstrating the growing interest in artificial intelligence and digital skills among Nigerian workers and job seekers.
In addition, our academies in Lagos and Abuja continue to train young Nigerians in practical workplace skills. Our Lagos Academy alone has trained over 780 participants since its establishment.
These initiatives are preparing Nigerians for the changing world of work while helping employers access a more skilled workforce.
Looking ahead, what is your vision for NECA over the next few years?
Looking back, I believe the past four years have been about laying solid foundations. Our focus going forward is to deepen collaborations, expand our advocacy and provide more practical solutions for businesses.
We want NECA to become the first point of reference whenever businesses need guidance or support.
Whether the issue relates to ESG, artificial intelligence, ICT, policy advocacy or enterprise development, we want employers to immediately think of NECA as the organisation that can provide credible solutions.
The collaborations we have built over the last four years are opening even greater opportunities, and we intend to build on those foundations in the years ahead.
Finally, what message do you have for Nigerian businesses, policymakers and investors?
The journey is undoubtedly challenging. While ongoing economic reforms are beginning to produce positive macroeconomic indicators, the benefits have not yet fully reached businesses and ordinary Nigerians.
Government itself has acknowledged this reality. Our message is simple: businesses should remain resilient while government sustains reforms and addresses the practical challenges facing the productive sector.
We believe that if consistency is maintained, the benefits of today’s reforms will eventually filter through to businesses, investors and citizens alike.
