NECA Urges Government to Prioritise Power, Regulatory Reforms to Revive Nigerian Businesses
NECA has urged the Federal Government to prioritise electricity, infrastructure and regulatory reforms, saying Nigerian businesses continue to struggle with high operating costs despite ongoing economic reforms.
By Kikelomo D.
The Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government to intensify efforts to address Nigeria’s persistent electricity crisis, regulatory bottlenecks and infrastructure deficits, warning that businesses continue to face severe operating conditions despite signs of macroeconomic recovery.
Speaking in an exclusive interview with GLEBM News, the Director-General of NECA, Adewale Oyerinde, said while recent economic reforms have begun to stabilise some sectors of the economy, manufacturers and service providers are yet to experience meaningful relief.
According to him, recent economic data released by the Central Bank of Nigeria (CBN) indicate that although agriculture has recorded modest improvements, the real and service sectors remain under pressure due to rising production costs, inflation, foreign exchange volatility and energy challenges.
“The reality is clear. Businesses are still struggling. While there are signs of marginal recovery in some sectors, particularly agriculture, the real sector and services continue to experience contraction,” he said.
Oyerinde disclosed that organised businesses spent more than ₦1 trillion on alternative energy sources, including diesel and solar power, because of unreliable electricity supply.
He explained that the huge expenditure represents resources that could have been invested in expanding businesses, creating jobs and increasing productivity.
“No country can industrialise without reliable power. The money businesses spend generating their own electricity should ordinarily be invested in expansion, innovation and employment,” he said.
The NECA boss commended the Federal Government’s decision to decentralise electricity generation, allowing states to participate more actively in power production, but urged authorities to accelerate implementation and encourage greater state participation.
Beyond electricity, Oyerinde identified regulatory inefficiencies as another major challenge slowing private sector growth.
He said government agencies should adopt a more investment-friendly approach that balances effective regulation with policies that encourage enterprise development.
“Regulation should promote investment and economic growth, not create unnecessary bottlenecks. Government must also address contradictions within its own institutions if businesses are to thrive,” he stated.
He noted that many of Nigeria’s economic challenges are structural and have accumulated over several years, stressing that sustained policy consistency would be required to restore investor confidence.
While acknowledging ongoing reforms by the Federal Government, Oyerinde said businesses are yet to feel the full benefits at the operational level.
“The reforms are beginning to show results at the macro level, but they have not yet fully trickled down to businesses and ordinary Nigerians. We remain hopeful that the benefits will become more visible over time,” he added.
NECA maintained that strengthening infrastructure, improving energy supply and creating a more predictable regulatory environment remain essential to boosting competitiveness, attracting investment and stimulating sustainable job creation across Nigeria.
