By Onu Okorie

The Nigeria Employers’ Consultative Association NECA has warned that the Micro, Small, and Medium Enterprises MSMEs across Nigeria are still struggling to feel the benefits of the federal government’s sweeping economic reforms,  even as some macroeconomic indicators show signs of improvement.

Speaking in Abuja on Sunday, NECA Director-General Adewale-Smatt Oyerinde said that while policy moves such as the removal of the fuel subsidy and the liberalisation of the foreign exchange market demonstrated a commitment to market-driven governance, the gains had yet to trickle down to the businesses that need them most.

“Many private sector operators are yet to experience the anticipated gains of the reforms as they continue to grapple with inflation, energy costs and exchange rate volatility,” Mr Oyerinde said.

He acknowledged that the reforms had improved fuel availability, curbed recurring supply disruptions and sent a positive signal to both local and foreign investors. However, he noted that the naira’s depreciation had driven up production costs, eroded competitiveness and exposed MSMEs to heightened operational risks, burdens that larger corporations are far better positioned to absorb.

Declining consumer purchasing power has compounded the pressure, with some firms already scaling back investment plans and restructuring operations in response to deteriorating economic conditions. Employers, Mr Oyerinde added, remain cautious about large-scale hiring given high borrowing costs and persistent foreign exchange volatility.

Power supply emerged as a particularly urgent concern. Despite ongoing reforms in the sector, Mr Oyerinde described insufficient electricity as “the number one constraint to business productivity and competitiveness across the country,” with many businesses forced to rely on costly alternative energy sources.

“Inflation, high energy costs, multiple taxation, logistics challenges and weak consumer spending continue to constrain productivity and limit business expansion,” he said, noting that improvements in foreign reserves and government revenue had not yet translated into tangible relief for businesses or households.

Mr Oyerinde called on the government to urgently prioritise stable power supply, lower energy costs, tax harmonisation and foreign exchange stability. He also advocated for investment in technical and vocational education and stronger public-private collaboration to build a workforce capable of supporting enterprise growth.

Despite the challenges, the NECA chief expressed cautious optimism, saying that sustained, targeted reforms could eventually unlock broader benefits, driving growth, expanding employment and laying the foundation for long-term economic development.