Adewale-Smatt Oyerinde, Director-General of the Nigeria Employers’ Consultative Association (NECA), discussed Nigeria’s economic challenges and the role of the Private Sector in a recent interview with Henry Falaiye. He acknowledged government efforts, such as initiatives by the Bank of Industry and the Small and Medium Enterprise Development Agency of Nigeria, but stressed that deep-rooted issues from previous administrations still impede progress. Oyerinde called for urgent action on critical issues like fixing refineries, ensuring a stable fuel supply, and prioritising Security to create a more conducive business environment.
Inflation remains a pressing issue for businesses in Nigeria, and Oyerinde highlighted the difficult balancing act employers face in managing rising production costs while maintaining sustainability. The implementation of a new Minimum Wage law further complicates the scenario. Although many businesses are already paying above the minimum threshold, the Sustainability of these adjustments depends on a stable Economy and a supportive business environment. Oyerinde commended organized labour for its collaborative approach to addressing these concerns, noting that a thriving private sector is essential for job creation, with the private sector being responsible for the majority of new jobs in Nigeria.
Role of the private sector in tackling unemployment.
When asked about the role of the private sector in reducing unemployment, Oyerinde pointed to NECA’s initiatives, such as an ICT academy that offers free top-tier training. This aligns with the broader objective of enhancing the employability of Nigerian youth by equipping them with globally competitive skills. However, he stressed that the government must create a regulatory, legislative, and business environment that encourages Investment and job creation without requiring excessive incentives. This would naturally attract Foreign Direct Investment, benefiting both the private sector and the broader economy.
Despite these efforts, Oyerinde expressed concern over the government’s reliance on short-term palliative measures, which he described as temporary fixes for businesses struggling with deeper, structural challenges. He called for comprehensive reforms that focus on critical sectors like infrastructure, energy, and transportation, as these reforms would create the foundation for long-term Economic Stability and competitiveness. The disparity between Nigerian businesses and their African counterparts, who benefit from more stable energy sources and efficient transportation systems, further underscores the need for systemic reform.
Advocating for export diversification and economic growth.
Furthermore, Oyerinde also discussed NECA’s advocacy for non-oil exports, highlighting the organized private sector’s commitment to supporting Nigeria’s export-diversification efforts. With Agriculture and Trade historically being key drivers of Nigeria’s economic growth, revitalizing these sectors could provide a pathway to reducing dependence on oil exports. He expressed optimism regarding the appointment of Dr. Jumoke Oduwole as the Minister for Industry and Investment, viewing it as a positive step toward repositioning trade and non-oil exports as pillars of Nigeria’s economy.
On the issue of casual labour, Oyerinde reaffirmed NECA’s strong stance against casualization, stressing that labour should not be treated as a commodity. He called for the swift passage of the long-delayed national labour law to create a fairer and more regulated working environment. Without a robust legal framework, workers’ rights and job security would remain at risk, preventing meaningful progress in improving the country’s industrial relations system. This call for reform highlights the urgent need for a labour market that prioritises fairness and security for workers while fostering long-term economic stability. As casualisation continues to undermine job security, it is vital for the government to act decisively in passing the national labour law to safeguard workers and strengthen the workforce as a whole.
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Ultimately, Oyerinde’s insights shed light on the complexities of Nigeria’s economic landscape. While acknowledging the positive steps taken by the government, he emphasized the need for long-term reforms to address structural challenges, particularly in infrastructure, energy, and labour laws. The private sector, through initiatives like skills development and Export diversification, plays a crucial role in driving Economic Growth and job creation. For Nigeria to overcome its economic difficulties, both the government and the private sector must work collaboratively to foster a conducive environment for sustainable development.