By Victor Ahiuma-Young
LAGOS — Against the backdrop of some improvements in some macroeconomic indicators, the Nigeria Employers’ Consultative Association (NECA) and the Nigeria Labour Congress (NLC) have expressed concerns that the operating environment is still adverse while sustaining pressures on average Nigerians.
The Nigerian Bureau of Statistics, NBS, has just released its latest Composite Consumer Price Index indicating that inflation declined for the third consecutive month in June, showing 22.22 per cent, while foreign exchange rate hovered around N1,520 to USD1 following a sustained recovery of the local currency in recent weeks.
Apparently, referencing the impact of the of both economic indicators when they were at all time high, the two bodies said businesses and workers are still on the brink of collapse.
They added poor policy implementation and growing insecurity in the list of crises facing the economy, stating that businesses are “under siege”.
The two bodies, speaking at the Annual General Meeting, AGM, of NECA in Lagos yesterday, called on government to urgently address these challenges to restore the country to the path of progress, cohesion, and stability.
Dr. Ifeanyi Okoye, NECA President, painted a bleak picture of Nigeria’s economic landscape, stating: “The past year has been marked by the continued impact of key policy decisions implemented by the Government in 2023, including the removal of fuel subsidies, the unification and liberalization of the foreign exchange rate, and introduction of a new national minimum wage.
“The macroeconomic environment remained challenging throughout the year. The exchange rate experienced significant depreciation and volatility, inflation persisted at elevated levels, and interest rates stayed in double digits. As of May 2025, the exchange rate stood at N1,538 per US dollar, maximum lending rates hovered around 30.8 per cent, and inflation remained high at 22.9 per cent. Despite these headwinds, our members have shown remarkable resilience, making deliberate and often difficult adjustments to their production and marketing strategies in order to remain afloat and adapt to the high-cost, complex operating environment.”
On global influences, he noted: “The ongoing Russia-Ukraine conflict disrupted global commodity and input supply chains. Additionally, the ripple effects of the US-China trade tensions, particularly the imposition of a minimum 10 per cent tariff on U.S. imports, have had consequences for global exports. Furthermore, the re-escalation of the Israeli-Palestinian conflict, compounded by Iran’s involvement, has significantly disrupted key shipping routes in the Middle East, especially the Straits of Hormuz, a critical artery for global trade.”
He explained that these global disruptions, coupled with domestic economic strains, significantly influenced Nigeria’s performance in 2024.
“The economy recorded a growth rate of 3.4 per cent, an improvement from 2.23 per cent in 2023. The agricultural sector posted a modest increase, growing by 1.19 per cent compared to 1.13 per cent in 2023. The industrial sector rebounded, expanding by 2.45 per cent, up from 0.72 per cent in the previous year. The services sector saw the most robust growth, rising by 4.7 per cent in 2024, compared to 4.18 per cent in 2023.
“While this upward trend in GDP growth is encouraging, it is crucial that it translates into tangible improvements in the lives of Nigerians. Unfortunately, poverty levels worsened in 2024, rising to 47 per cent from 38.9 per cent in 2023. This indicates that income inequality remains a significant challenge, with a small segment of the population commanding a disproportionate share of the national income, while the majority continues to earn meagre wages.”
Counterfeiting
Dr. Okoye also called for urgent legislative action to combat the growing menace of fake and smuggled goods that are crippling local manufacturers.
“The Nigerian market is being overrun by counterfeit products, many of them made or smuggled in with foreign collaboration,” he said.
“Legitimate companies are losing market share, suffering reputational damage, and watching their profits disappear.”
He lamented the lack of a consolidated legal framework to address the crisis, stating:
“Existing laws are fragmented across the Trademarks Act, Copyright Act, and Patents and Designs Act.”
NECA urged the Federal Government to pass a comprehensive Anti-Counterfeiting Law that would protect both local producers and consumers.
“We need stronger enforcement and punitive measures. Without them, we are allowing criminal enterprise to thrive at the expense of genuine entrepreneurship,” Dr. Okoye warned.
He acknowledged recent positive reforms by the Federal Government, such as the Nigerian Tax Act 2024, which consolidated over 50 minor taxes, reduced Company Income Tax from 30 per cent to 25 per cent, and provided exemptions for small businesses earning below N50 million annually.
“We commend these reforms. But implementation remains critical. We want to see these policies translated into actual ease of doing business”, he said.
Dr. Okoye also praised the “Renewed Hope Nigeria First” policy by President Bola Tinubu, which mandates public institutions to prioritize local products in procurement, saying “This could be transformative, but only if it is enforced. NECA, alongside the Organized Private Sector of Nigeria (OPSN), will continue to engage with the government to protect businesses from regulatory overreach and preserve a conducive operating environment.
“The macroeconomic climate remains extremely challenging, primarily due to volatility in three critical economic indicators: exchange rate, inflation, and interest rates. As of now, the official exchange rate hovers around ¦ 1,550 to the US Dollar, inflation stands at 22.97 per cent, and the maximum lending rate is 30.5 per cent. These conditions make it nearly impossible for businesses, especially Micro, Small, and Medium Enterprises (MSMEs), to operate profitably.
“We commend the Central Bank of Nigeria (CBN) for its recent reforms and interventions, which have begun to stabilize the monetary environment. However, more coordinated efforts are required to align forex and interest rate policies. An improvement in forex availability will strengthen the Naira, leading to lower inflation and interest rates.”
“Businesses are operating under immense pressure, with high operating costs pushing up commodity prices and reducing sales, revenue, and profit margins. Smuggling and the counterfeiting of local goods have become rampant and deeply entrenched. Local markets are flooded with counterfeit products manufactured or distributed by unscrupulous individuals, often in collusion with foreign collaborators. As a result, legitimate companies suffer significant losses in quality perception, market share, and profitability.
“Regrettably, Nigeria lacks a comprehensive anti-counterfeiting law. Existing provisions are scattered across the Trademarks Act, Copyright Act, and Patents and Designs Act, as well as within the mandates of agencies like NAFDAC and SON. While these fragmented laws provide some protection, there is an urgent need”, Dr Okoye added.
NLC raises concerns on national stability
On his part, President of the NLC, Joe Ajaero, warned that shrinking civic space, repression, and economic exclusion are worsening the country’s already fragile labour environment.
Represented by NLC Deputy President, Prince Adewale Adeyanju, Ajaero, in his goodwill message, stated: “More broadly, we must act to reclaim Nigeria’s civic space, which is shrinking under the weight of insecurity, repression, and economic exclusion. A vibrant civic space is not a luxury — it is the fertile ground in which both businesses and workers flourish. Imagine, just for a moment, the transformative power we could unleash if employers and employees spoke with one voice for fairness and shared prosperity.
“As you deliberate on how technology and AI can drive business sustainability, I urge you to remember: profit without people is an empty pursuit; progress without justice is a fleeting illusion. That worker you consider redundant is also the consumer who keeps your enterprise alive. When we protect jobs, we protect the entire chain of production, consumption, and social stability.”
Ajaero also reiterated Labour’s opposition to the move to delist labour matters from the Exclusive Legislative List, saying: “The misguided attempts by some state governors and legislators to remove labour issues from the Exclusive Legislative List reveal a dangerous ignorance of the chaos this would unleash. In moments like this, our unity is our shield. Together, we must defend the institutional integrity of industrial relations in Nigeria.
“The 2025 ITUC Global Rights Index has again ranked Nigeria among the ten worst countries for violations of workers’ rights. This is a stain on our conscience and a legacy none of us should accept. Many of these violations occur within enterprises represented here. I urge NECA to lead by example: uphold collective bargaining, respect labour laws, and reaffirm the dignity of the workforce.”
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