LAGOS — Despite recent improvements in key macroeconomic indicators, the Nigeria Employers’ Consultative Association (NECA) and the Nigeria Labour Congress (NLC) have warned that Nigeria’s business and labour environments remain under severe pressure, threatening economic stability and livelihoods.
At NECA’s Annual General Meeting held in Lagos on Wednesday, both organisations highlighted the harsh realities confronting businesses and workers, even as inflation slowed for the third consecutive month to 22.22% in June and the naira showed modest recovery, trading around ₦1,520 to $1.
Speaking at the event, NECA President Dr. Ifeanyi Okoye described the operating environment as “hostile,” citing persistent inflation, volatile exchange rates, high lending rates, insecurity, and poor policy implementation as major threats to enterprise survival.
“Businesses are under siege,” Okoye stated. “Despite reforms such as the removal of fuel subsidies and FX unification in 2023, the macroeconomic climate has remained challenging.”
He noted that by May 2025, the naira had depreciated to ₦1,538/$1, maximum lending rates hit 30.8%, and inflation stayed elevated at 22.9%, squeezing businesses across sectors. Still, NECA members had shown resilience, he said, by adapting their operations to the high-cost environment.
Okoye further outlined global disruptions—such as the Russia-Ukraine war, US-China trade tensions, and Middle East instability—as factors compounding Nigeria’s domestic struggles.
While GDP grew by 3.4% in 2024, with modest gains in agriculture and significant rebounds in industry and services, he noted that these gains had not translated into improved living conditions. Poverty rose sharply to 47% in 2024 from 38.9% in 2023, underscoring deepening inequality.
On counterfeiting, he sounded the alarm over the influx of fake and smuggled goods, warning that the local market was being “overrun” and that legitimate companies were suffering losses in market share, revenue, and reputation.
“We need a comprehensive Anti-Counterfeiting Law,” Okoye urged, lamenting that current laws remain fragmented across multiple statutes.
He welcomed government reforms like the Nigerian Tax Act 2024, which streamlined over 50 minor taxes and lowered Company Income Tax to 25%, but stressed the need for effective implementation.
Okoye also endorsed the “Renewed Hope Nigeria First” policy directing public institutions to prioritise local procurement, but warned it must be enforced to make a real impact.
NLC Flags Rising Worker Hardship, Civic Repression
In a goodwill message, NLC President Joe Ajaero, represented by Deputy President Prince Adewale Adeyanju, warned that insecurity, economic exclusion, and a shrinking civic space are eroding labour rights and national cohesion.
“A vibrant civic space is not a luxury — it is the fertile ground in which both businesses and workers flourish,” Ajaero said. He called for unity between employers and employees to promote shared prosperity.
He also opposed attempts by some state governors to remove labour issues from the Exclusive Legislative List, warning it could destabilise Nigeria’s already fragile industrial relations system.
Referencing the 2025 ITUC Global Rights Index, which again ranked Nigeria among the world’s worst violators of workers’ rights, Ajaero challenged NECA to lead by example in upholding collective bargaining and respecting labour laws.
“Profit without people is an empty pursuit,” he concluded, urging stakeholders to see workers not just as costs but as vital links in the chain of economic sustainability and social stability.
