Economy showing signs of recovery, but Nigerians still in hardship – NECA

The Nigeria Employers’ Consultative Association (NECA) has warned that despite signs of macroeconomic stability, ordinary Nigerians and businesses are yet to feel any real relief as inflation, weak consumer demand, and multiple taxes continue to bite.

Reacting to comments by World Trade Organization (WTO) Director-General, Ngozi Okonjo-Iweala, that Nigeria’s economy has stabilised, NECA’s Director-General, Adewale-Smatt Oyerinde, acknowledged that recent government reforms have brought a degree of balance.

However, he stressed that the stability remains “largely on paper” with little impact on households and businesses.

“Two years ago, we were on the verge of bankruptcy, printing money to finance subsidies and defend the naira. Today, we see signs of improvement: forex rates are nearly aligned, trade surplus has replaced deficits, and reserves have grown. But Nigerians are not feeling it,”  Vanguard quoted him as saying.

According to NECA, soaring costs have eroded consumer purchasing power, leaving many businesses struggling to survive.

“Businesses thrive on stable demand. When people cannot afford goods, production declines, loans remain unpaid, and companies risk collapse,” it cautioned.

The employers’ body also raised concerns about what it described as anti-business regulations and arbitrary taxation by some government agencies, warning that such practices could undermine the progress of ongoing tax reforms.

“While the objective of reforms is to harmonise levies, some agencies are exploiting loopholes to introduce fresh charges. Without decisive action, these efforts will be wasted,” Oyerinde added.

NECA urged the federal government to match macroeconomic stability with concrete relief measures for citizens, arguing that only then will the recovery reflect in real life and not just in policy statements.