The Nigeria Employers’ Consultative Association has thrown its weight behind the call by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, for the Federal Government to sustain Nigeria’s fuel subsidy reforms.
NECA also cautioned that the success of the policy must be measured by its impact on the economy, businesses and the welfare of Nigerians rather than the volume of revenue accruing to the government, a statement by NECA on Tuesday said.
Speaking on the development, the Director-General of NECA, Mr Adewale-Smatt Oyerinde, acknowledged that subsidy reform remains a critical step towards restoring fiscal sustainability, “reducing pressure on public finances and freeing resources for national development”.
Oyerinde, however, stressed that the reform would lose its economic and social justification if the resulting fiscal gains failed to translate into improved living standards, lower production costs, job creation and greater economic opportunities.
According to him, while NECA supports the government’s resolve to sustain subsidy reform, “the ultimate measure of its success must be the tangible benefits it delivers to Nigerians”.
“Fiscal savings and increased government revenue mean little to the average citizen if businesses continue to struggle, jobs remain threatened and households are increasingly unable to meet their basic needs,” Oyerinde stated.
The NECA DG expressed serious concern over the persistent rise in the prices of petroleum products.
Oyerinde noted that petrol prices reportedly averaging N1,400 per litre and diesel prices of about N1,900 per litre in some locations have further escalated operating costs for businesses and compounded the hardship faced by Nigerians.
He maintained that the rising cost of energy, transportation and production continues to undermine business competitiveness, particularly among Micro, Small and Medium Enterprises, many of which are already contending with weak purchasing power, infrastructure deficits and other structural challenges.
“The reality is that businesses cannot remain competitive when energy costs continue to rise without corresponding improvements in critical infrastructure,” he said.
Oyerinde emphasised that the increasing cost of petrol and diesel is putting enormous pressure on enterprises, threatening business sustainability, constraining expansion and placing jobs at risk.
“Government must therefore ensure that the gains from subsidy reform are deliberately channelled towards reducing these pressures,” he said.
Oyerinde consequently urged the Federal Government to urgently strengthen targeted social protection programmes to cushion the impact of the reforms on vulnerable Nigerians, particularly low-income households and workers.
He emphasised that such interventions must be adequately funded, transparent, data-driven and structured to ensure that assistance reaches those who genuinely need it.
The NECA boss further called for stronger collaboration among the federal, state and local governments to ensure that resources accruing from subsidy savings and improved crude oil revenues produce measurable developmental outcomes.
“Nigeria must resist the temptation to consume its oil windfalls. Additional revenue arising from higher crude oil prices presents an opportunity to address longstanding structural weaknesses in the economy,” he stated.
Oyerinde highlighted that the resources must be invested productively in sectors that stimulate growth, reduce the cost of doing business, strengthen competitiveness and create sustainable employment.
He identified electricity generation and distribution, transportation networks, roads, agricultural development, healthcare, education and industrial infrastructure as priority areas requiring strategic investment.
He reiterated that addressing Nigeria’s persistent electricity challenges must rank among the government’s most urgent economic priorities, given the heavy dependence of businesses on expensive alternative energy sources.
“Reliable and affordable electricity would significantly reduce production costs, improve the competitiveness of Nigerian manufacturers, support MSME growth and stimulate employment. Without addressing the energy deficit, the benefits of subsidy reform may remain largely theoretical for many businesses and households,” Oyerinde noted.