The Nigeria Employers’ Consultative Association (NECA) has backed the Federal Government’s fuel subsidy reform and urged stronger interventions to cushion hardship and invest oil windfalls productively.
The Director-General of NECA, Mr Adewale-Smatt Oyerinde, said this on Tuesday in Abuja while reacting to the call by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, for sustained subsidy reform.
Oyerinde said the success of the reform should be measured by improvement in citizens’ welfare, business operations and job creation, rather than increased government revenue alone.
“While we support the government’s resolve to sustain subsidy reform, the ultimate measure of its success must be the tangible benefits it delivers to Nigerians,” he said.
He said fiscal savings would have little impact if businesses continued to struggle, jobs remained threatened and households found it difficult to meet their basic needs.
Oyerinde expressed concern over rising petroleum prices, noting that petrol now averaged N1,400 per litre and diesel N1,900 in some locations, thereby increasing operating costs for businesses.
He said Micro, Small and Medium Enterprises (MSMEs) were particularly vulnerable to rising energy and transportation costs, weak purchasing power and inadequate infrastructure.
“The increasing cost of petrol and diesel is putting enormous pressure on enterprises, threatening business sustainability, constraining expansion and placing jobs at risk,” he said.
The NECA chief urged the Federal Government to strengthen targeted social protection programmes for vulnerable Nigerians, particularly low-income households and workers, through transparent and adequately funded interventions.
He also called for stronger collaboration among the Federal, State and Local Governments to ensure that subsidy savings and increased crude oil revenues produced measurable development 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 said.
Oyerinde listed electricity, transportation, roads, agriculture, healthcare, education and industrial infrastructure as priority areas for investment to stimulate growth and create sustainable employment.
He said reliable and affordable electricity would reduce production costs, improve manufacturers’ competitiveness, support MSME growth and stimulate employment.
The director-general also advocated investment in agriculture, storage facilities, food processing and distribution infrastructure to reduce post-harvest losses and moderate food inflation.
He urged the government to complement subsidy reforms with consistent policies, efficient regulation, improved security and lower logistics costs to encourage private-sector investment and productivity.
Oyerinde said converting fiscal gains into affordable energy, improved infrastructure, decent jobs and better living standards was essential to sustaining public confidence in the reforms.
Discussion0