How Nigeria can tackle its economic constraints, says NECA

…Opposes return to fuel subsidy regime

The federal government must prioritise local production and focus on strengthening Nigeria’s industrial capacity to tackle the country’s economic challenges, boost employment and improve living standards of the people, the Nigeria Employers’ Consultative Association (NECA), a member of the organised private sector (OPS), has said.

Adewale-Smatt Oyerinde, director-general of NECA, who made the submission, said sustainable economic recovery would depend on addressing the structural constraints confronting businesses, including high energy costs, regulatory bottlenecks, inflation and inadequate infrastructure.

He spoke in an interview with BusinessDay, saying although the easing of inflation and improved macroeconomic stability were encouraging, their benefits must translate into lower living costs and improved purchasing power for households. Oyerinde argued that supporting businesses to expand would generate multiple economic benefits, including increased employment, higher tax revenues and improved consumer spending.

According to him, “the biggest agenda” for government should be to address the cost of living and the cost of doing business, noting that sustainable business growth would help tackle unemployment and improve economic welfare.

Speaking on the current fuel subsidy debate and rising prices of petroleum products, with petrol selling between N1,350 and N1,400 per litre, Oyerinde supported short-term interventions to ease the burden on households and businesses, including the proposed ex-gantry pricing arrangement, provided such measures did not amount to a return to fuel subsidy. He maintained that Nigeria’s crude oil resources should benefit Nigerians, suggesting that petroleum products could be sold at cost without excessive profit margins, while warning that the government must guard against smuggling and other unintended consequences.

However, he called for long-term solutions through expanded public transportation, greater adoption of compressed natural gas (CNG) and electric vehicles, and increased domestic production of solar panels and batteries.

Oyerinde also advocated targeted import-duty waivers on machinery, equipment and raw materials needed by local manufacturers, stressing, however, that such incentives must be monitored to prevent abuse.

He identified industrialisation as critical to reducing Nigeria’s dependence on imports and strengthening the naira, arguing that increased domestic production would lower demand for foreign exchange.

Ahead of the 2027 election, the NECA chief urged politicians to sustain ongoing economic reforms, warning against sacrificing recent gains in macroeconomic stability to political patronage. He also called for renewed commitment to power-sector improvements, industrial development and a predictable regulatory environment.

Oyerinde further advocated a single-digit inflation target, insisting that political parties present measurable strategies to reduce inflation, address insecurity, and stimulate productive investment.

On employment and workforce competitiveness, he urged businesses and workers to embrace artificial intelligence (AI) and continuous skills development.

He also called for reforms to Nigeria’s education system, including dual education that combines classroom learning with practical vocational training, to bridge the skills gap and prepare young people for industry.

Oyerinde believed that coordinated action by the government, employers and workers was essential to building a productive economy capable of delivering sustainable jobs, stronger businesses and improved living standards.