…applauds Tinubu’s reforms, minister reassures support
The Nigeria Employers’ Consultative Association (NECA) has expressed deep concern over the increasingly challenging business environment in Nigeria, despite modest gains in economic growth.
Speaking at NECA’s 68th Annual General Meeting (AGM) in Lagos on Wednesday, Ifeanyi Okoye, the association’s president, highlighted both domestic and global factors that have shaped Nigeria’s economy in 2024.
This was reaffirmed by Muhammadu Dingyadi, Minister of Labour and Employment, represented by Mienye Badejo, Southwest Zonal Director, Ministry of Labour and Employment, on behalf of the Federal Government, to the organised private sector.
The minister, however, urged employers to prioritise skill acquisition by their employees, workplace safety and social dialogue to strengthen industrial harmony in the country.
But according to the NECA president, policy decisions taken in 2023—including the removal of fuel subsidies, foreign exchange unification, and a revised national minimum wage—triggered far-reaching structural changes. Although GDP grew by 3.4 percent in 2024, up from 2.23 percent in 2023, inflation remained high at 22.9 percent, while the exchange rate weakened to N1,538 per US dollar and lending rates soared to 30.8 percent. Poverty also worsened, with 47 percent of Nigerians living below the poverty line, up from 38.9 percent the previous year.
Okoye, at the AGM, whose theme was “The workplace: Influence of technology and AI in business sustainability”, acknowledged the resilience of Nigerian businesses despite the economic headwinds, noting that many companies were forced to shift focus from long-term growth to short-term survival. “The current macroeconomic climate, characterised by volatile exchange rates, high inflation, and interest rates, continues to pressure businesses, particularly MSMEs,” he said.
However, Okoye commended the Federal Government for reform efforts, including the Nigerian Tax Act 2024, which reduces Company Income Tax to 25 percent, consolidates over 50 minor taxes, and provides relief for small businesses. He also praised regulatory reforms under the Presidential Enabling Business Environment Council (PEBEC) and the newly approved “Renewed Hope Nigeria First” policy to promote local content in public procurement.
Despite these strides, NECA raised concerns over persistent issues such as smuggling, counterfeiting, and what it described as regulatory overreach by National Assembly Committees, particularly incessant summoning of business executives.
“These frequent and often unnecessary summons disrupt business operations and go against the spirit of the Ease of Doing Business initiative,” he said, while also calling for a consolidated Anti-Counterfeiting Law to tackle counterfeiting of genuine local products.
Speaking also at the AGM, Joe Ajaero, president of the Nigeria Labour Congress (NLC), emphasised the need to preserve jobs amid the increasing influence of technology in the workplace.
“As technology accelerates and the frontiers of artificial intelligence expand, the imperative before all of us, employers and workers alike, is to ensure that innovation does not eclipse human dignity, and that the efficiency of machines does not erode the rights, livelihoods, and aspirations of the men and women who keep enterprises alive. Technology must serve the cause of Decent Work and social justice, not subvert or supplant them”, Ajaero said.
He said it was the collective responsibility of employers and employees to create workplace governance frameworks that shape outcomes in the world of work in favour of workers and businesses, adding that a balance was needed at all times.
