Nigerian businesses continue to face high energy costs, persistent inflation, multiple taxation and other economic pressures despite government reforms aimed at improving the business environment, the Nigeria Employers’ Consultative Association (NECA) has said.
Speaking at the opening of the 5th Nigeria Employers’ Summit in Abuja on Monday, NECA President Dr Ifeanyi Okoye said the government’s reform agenda was designed to address long-standing economic challenges and create conditions for sustainable growth, but many enterprises were still struggling with difficult operating conditions.
Okoye, represented by NECA Treasurer Richard Ayibiowu, acknowledged the government’s “bold and far-reaching reforms”, including the removal of fuel subsidies, foreign exchange market reforms, tax reforms, efforts to improve the ease of doing business and measures to support industrial development.
He said the initiatives represented efforts to strengthen fiscal sustainability, improve public finance management, increase revenue generation and position Nigeria for long-term economic competitiveness.
However, he said the success of the reforms should ultimately be measured by their impact on businesses, investment, job creation, productivity and the welfare of citizens.
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“While there have been positive developments in certain macroeconomic indicators, businesses continue to operate in a challenging environment,” Okoye said.
He identified high energy costs, inflationary pressures, exchange rate volatility, multiple taxation, infrastructure gaps, logistics challenges, regulatory difficulties and weaker consumer purchasing power as major obstacles affecting business performance across sectors.
The NECA president said the burden had been particularly severe for Micro, Small and Medium Enterprises (MSMEs), which continue to face rising operational costs and financial pressures.
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The summit, themed around reviewing Nigeria’s economic reform journey, was expected to provide a platform for government and private-sector stakeholders to assess progress, identify challenges and propose measures to improve competitiveness.
NECA Director-General Adewale Smart Oyerinde said the organised private sector had supported the removal of the fuel subsidy for years, describing it as a long-standing recommendation from employers.
“One of the key recommendations consistently made by the organised private sector over the years was the removal of the fuel subsidy,” Oyerinde said.
“Today, the subsidy has been removed, and we are all living with the realities of that decision.”
He said while businesses recognised the need for reforms, government must also respond to the pressures facing enterprises by adjusting policies to support competitiveness.
Vice President Kashim Shettima said the administration of President Bola Tinubu understood the difficulties businesses were facing but maintained that the reforms were necessary to rebuild the economy on a sustainable foundation.
Shettima, represented by Deputy Chief of Staff to the President (Office of the Vice President) Senator Ibrahim Hassan Hadejia, said Nigeria had been weighed down by structural challenges including an unsustainable fuel subsidy system, foreign exchange distortions, weak public revenues and declining investor confidence.
“The reforms have been difficult, but their purpose is to correct the foundations so that growth becomes real, durable and inclusive,” he said.
On taxation, Shettima said businesses were not against paying taxes but opposed multiple taxation and complicated compliance processes.
“Businesses do not reject taxation. They reject multiple taxation, harassment and systems that punish compliance while rewarding informality,” he said.
He said government tax reforms were aimed at simplifying tax administration, reducing the number of taxes, supporting small businesses and expanding the tax base.
The vice president also highlighted ongoing reforms in the power sector, gas development and the Presidential Compressed Natural Gas (CNG) Initiative as measures aimed at reducing energy costs for businesses and households.
He said investments in infrastructure, logistics and digital public services would also help lower the cost of doing business and improve Nigeria’s competitiveness.
Shettima urged the private sector to take advantage of opportunities created by the reforms, stressing that government alone could not deliver economic transformation.
The summit comes as Nigerian businesses continue to navigate the effects of economic adjustments introduced by the government, with employers calling for policies that balance fiscal reforms with support for enterprise growth and job creation.
