The Nigeria Employers’ Consultative Association has raised fresh concerns over the rising cost of doing business, warning that persistent inflation and high energy prices now threaten business sustainability across the country.
Director-General Adewale Smatt Oyerinde said companies continue to face intense financial pressure despite ongoing wage reforms aimed at supporting workers. He stressed that many firms struggle to balance increased labor costs with soaring operational expenses.
Oyerinde explained that inflation has significantly eroded purchasing power and raised the cost of raw materials, logistics, and daily operations. At the same time, businesses must contend with unstable electricity supply and rising fuel costs, which force many companies to rely on expensive alternative energy sources.
He noted that these combined challenges have pushed several firms to reduce production levels, delay expansion plans, and reconsider workforce size. According to him, employers want to sustain jobs and remain competitive, but the current economic environment makes that goal increasingly difficult.
The NECA boss urged the government to introduce targeted policies that address inflation, stabilize energy costs, and improve the overall business climate. He emphasized that consistent policy implementation and support for the private sector would help companies maintain productivity and protect jobs.
Oyerinde also called for stronger collaboration between the public and private sectors to develop long-term solutions that promote economic stability and industrial growth. He warned that without urgent intervention, more businesses could scale down operations, leading to wider economic consequences.
The association reaffirmed its commitment to engaging policymakers and stakeholders to ensure that reforms strike a balance between worker welfare and business sustainability in Nigeria’s evolving economy.
