Turn oil windfalls into jobs, better living standards – NECA to FG

Employers back Oyedele on subsidy reform, demand investment in power, roads, agriculture

The Nigeria Employers’ Consultative Association (NECA) has urged the Federal Government to channel savings from fuel subsidy reforms and increased oil revenues into job creation, infrastructure development and improved living standards, warning that the success of the policy must be measured by its impact on Nigerians rather than government revenue alone.

The association, which backed the government’s resolve to sustain the reform programme, said the resulting fiscal gains must translate into tangible economic benefits for businesses, workers and households. NECA’s position followed a call by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, for the government to sustain the subsidy reform programme.

Director-General of NECA, Mr. Adewale-Smatt Oyerinde, who stated the association’s position, described the reform as a critical step towards restoring fiscal sustainability, easing pressure on public finances and freeing resources for national development. He, however, warned that the policy’s economic justification would be undermined if the savings failed to improve welfare, reduce production costs and create sustainable employment opportunities.

“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,” Oyerinde said. He added that increased government revenue would mean little to citizens if businesses continued to struggle, jobs remained threatened and households found it increasingly difficult to meet their basic needs.

The NECA chief expressed concern over the rising cost of petroleum products, noting that petrol reportedly averaged N1,400 per litre and diesel about N1,900 per litre in some locations. According to him, the increases have heightened operating expenses for businesses and worsened the financial pressures on households already contending with weak purchasing power and inadequate infrastructure.

Oyerinde said the rising costs of energy, transportation and production were undermining the competitiveness of Nigerian enterprises, particularly micro, small and medium enterprises (MSMEs), which play a critical role in the country’s productive economy. He warned that prolonged increases in operating expenses could force businesses to scale down operations, suspend expansion plans, reduce their workforce or close altogether.

“The reality is that businesses cannot remain competitive when energy costs continue to rise without corresponding improvements in critical infrastructure,” he said. Oyerinde urged the government to deliberately direct the gains from subsidy reform towards easing these pressures, strengthening enterprise sustainability and protecting jobs.

To cushion the effects of the reform, NECA called for stronger social protection programmes targeting vulnerable Nigerians, especially low-income households and workers whose purchasing power has been eroded by rising living costs. Oyerinde said such interventions must be adequately funded, transparent and based on reliable data to ensure that assistance reaches those who need it most.

The association also advocated closer coordination among the Federal, State and Local Governments in deploying subsidy savings and additional crude oil revenues towards measurable development outcomes. Oyerinde cautioned against using oil windfalls merely to finance recurrent expenditure, insisting that additional revenue should be invested in addressing structural weaknesses and laying the foundation for sustainable economic growth.

“Nigeria must resist the temptation to consume its oil windfalls,” he said. “Additional revenue arising from higher crude oil prices presents an opportunity to address longstanding structural weaknesses in the economy. These resources must be invested productively in sectors that stimulate growth, reduce the cost of doing business, strengthen competitiveness and create sustainable employment.”

Among the priority areas identified by NECA are electricity generation and distribution, road networks, transportation, agriculture, healthcare, education and industrial infrastructure. Oyerinde placed particular emphasis on the power sector, noting that unreliable electricity supply forces businesses to depend heavily on expensive alternative energy sources, thereby increasing production costs and weakening their ability to compete in domestic and international markets.

“Reliable and affordable electricity would significantly reduce production costs, improve the competitiveness of Nigerian manufacturers, support MSME growth and stimulate employment,” he said. He warned that without addressing the country’s energy deficit, the benefits of subsidy reform could remain largely theoretical for many businesses and households, despite the additional revenue accruing to government.

Oyerinde further called for increased investment in agriculture, storage facilities, food processing and distribution networks to reduce post-harvest losses, strengthen domestic food supply chains and moderate food inflation. He argued that addressing inefficiencies across the agricultural value chain would provide more sustainable relief than temporary interventions alone, while improving food availability, supporting farmers and creating employment opportunities.

Beyond the deployment of oil revenues, the NECA director-general urged the government to complement subsidy reform with wider economic measures aimed at stimulating private-sector investment and productivity. These, he said, should include consistent policies, efficient regulation, improved security, lower logistics costs and a predictable business environment capable of encouraging local and foreign investors to expand productive activities.

“Sustaining subsidy reform is important, but sustaining businesses, protecting jobs and improving the wellbeing of Nigerians are equally critical,” Oyerinde said. He stressed that the government must demonstrate that the sacrifices made by citizens and businesses were producing visible and measurable benefits, rather than allowing rising costs to continue eroding household welfare and enterprise viability.

NECA consequently urged the Federal Government to combine its commitment to subsidy reform with fiscal transparency, prudent management of oil windfalls, effective social protection and strategic investment in productive sectors.

Oyerinde said the government must move beyond revenue accumulation and ensure that the proceeds of reform deliver affordable energy, better infrastructure, lower business costs, decent jobs and improved living standards. He warned that failure to demonstrate these dividends could weaken public confidence in the reform and threaten its long-term sustainability.