The Nigeria Employers’ Consultative Association (NECA) has endorsed the Federal Government’s commitment to sustaining fuel subsidy reforms, following a call by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele. However, the association has urged the government to prioritise interventions that directly benefit citizens and businesses while ensuring the prudent management of additional oil revenues.
NECA Director-General, Mr. Adewale-Smatt Oyerinde, said subsidy reform remains essential to achieving fiscal stability, easing pressure on public finances and freeing up resources for national development. He, however, maintained that the policy’s success should be determined by its impact on Nigerians’ living standards, business operating costs, employment and economic opportunities, rather than the revenue generated by the government.
Oyerinde warned that the benefits of the reform would be undermined if increased government revenue failed to improve the welfare of citizens and the operating environment for businesses.
He said fiscal savings would have limited value to Nigerians if businesses continued to struggle, jobs remained under threat and households found it increasingly difficult to afford basic necessities.
The NECA chief also expressed concern over the continued increase in petroleum prices, noting that petrol reportedly averages ₦1,400 per litre, while diesel costs about ₦1,900 per litre in some locations. He said the rising prices have increased business operating expenses and intensified the economic hardship facing Nigerians.
According to him, escalating energy, transportation and production costs are weakening business competitiveness, particularly among Micro, Small and Medium Enterprises (MSMEs), which already face low purchasing power, inadequate infrastructure and other structural challenges.
Oyerinde stressed that businesses would struggle to remain competitive without corresponding improvements in critical infrastructure to offset rising energy costs. He called on the government to ensure that the financial gains from subsidy reform are deliberately directed towards easing the burden on enterprises, protecting jobs and supporting business expansion.
He also urged the Federal Government to strengthen targeted social protection programmes to cushion the effects of the reforms on vulnerable Nigerians, especially low-income households and workers.
He said such programmes must be adequately funded, transparent and guided by reliable data to ensure that assistance reaches those who genuinely need it. He further called for closer collaboration among the Federal, State and Local Governments to ensure that savings from subsidy removal and increased crude oil revenues translate into measurable development outcomes.
Oyerinde cautioned against the unproductive spending of additional oil revenue, describing higher crude oil prices as an opportunity to address longstanding structural weaknesses in the Nigerian economy.
He identified electricity generation and distribution, transportation networks, roads, agriculture, healthcare, education and industrial infrastructure as priority areas for investment, noting that productive use of the additional revenue could stimulate economic growth, lower business costs, improve competitiveness and create sustainable employment.
The NECA Director-General also identified the country’s persistent electricity challenges as an urgent economic concern, given businesses’ heavy reliance on expensive alternative power sources.
He said access to reliable and affordable electricity would reduce production costs, strengthen the competitiveness of Nigerian manufacturers, support MSME growth and create more employment opportunities. Without addressing the country’s energy deficit, he warned, the benefits of subsidy reform could remain largely theoretical for businesses and households.
On food security, Oyerinde called for increased investment in agriculture, storage facilities, food processing and distribution infrastructure to minimise post-harvest losses, strengthen domestic food supply chains and moderate food inflation.
He explained that addressing these structural challenges would provide more sustainable relief to Nigerians by tackling some of the underlying causes of the high cost of living.
He further emphasised the need to complement subsidy reform with broader economic measures to encourage private-sector investment and productivity. These include consistent government policies, efficient regulation, improved security, lower logistics costs and a more supportive business environment.
Oyerinde maintained that while sustaining subsidy reform is important, protecting businesses, safeguarding jobs and improving the welfare of Nigerians must remain equally important priorities. He urged the government to demonstrate that the sacrifices made by citizens and businesses are producing visible and measurable benefits.
He concluded by calling on the Federal Government to maintain its commitment to reform while strengthening targeted interventions, ensuring fiscal transparency, managing oil windfalls prudently and investing strategically in productive sectors.
According to him, the ultimate objective should be to transform increased government revenue into broader economic prosperity, reflected in more affordable energy, improved infrastructure, reduced business costs, decent employment opportunities and a better quality of life for Nigerians.
He warned that failure to deliver these tangible benefits could weaken public confidence in the reforms and threaten their long-term sustainability.
