How would you describe 2024 and what were the major lessons learnt?
The year 2024 was marked by multifaceted challenges that tested the resilience of organised businesses. Global shocks and domestic policy dynamics, shaped by ongoing reforms, significantly influenced the economy and disrupted businesses’ projections. While the economy was still grappling with the lingering effects of the COVID-19 pandemic and the Russia-Ukraine war, global supply chain disruptions, rising energy costs, and soaring food prices continued to pose significant challenges.

The effects of the removal of the fuel subsidy and the floating of the Naira, alongside other reform initiatives, added to the complexities faced by organized businesses, compounded by a harsh and unsupportive regulatory environment. 
Notwithstanding these challenges, we view 2025 with optimism following the reforms of the Federal Government and some critical economic developments. Key initiatives such as the monetary and fiscal reforms being steered by the Presidential Committee on Fiscal and Tax reform, the commencement of domestic refining at the Dangote Refinery, the resuscitation of the Port Harcourt Refinery and Petrochemical plant, the gallant activities of the Nigeria Armed Forces in combating banditry and insurgency, and other measures being implemented by the government, no doubt 2025 could be a year to herald our economic recovery. 

However, such recovery may not occur in the first half of the year as these positive actions require stability and consistency to yield tangible results.  If there are no new negative developments domestically and internationally, we expect to see remarkable economic improvement from the second half of 2025 onwards.  We expect that the domestic supply and price of fuel will become stable with a positive effect on the value of naira as the importation of refined fuel is drastically reduced, leading to a gradual decline in food and commodity prices.

As the umbrella body of employers and voice of organised businesses, what are your expectations in the new year?
We sincerely commend organised businesses for their resilience and doggedness in past years. Notwithstanding the multi-dimensional issues and challenges faced, businesses continue to trudge on – creating jobs and painfully engaging regulatory authorities that have constituted themselves into business undertakers, among others.

In the new year 2025, with the support of the government, we anticipate robust engagement with regulators, easing of the foreign exchange (forex) squeeze on businesses, and resolution of the many challenges including the forex forward issue with the Central Bank of Nigeria, the multi-layer and sometimes duplicating roles of regulatory authorities, relief from the multidimensional taxes, levies, and fees that businesses currently pay, positive resolution of the high energy cost, insecurity challenges, and the finalisation and passage of the Tax Reform Bill into law, among many others.
For Nigerian businesses and Nigeria as a country to be competitive under the AfCFTA framework, a lot needs to be done. We must support local businesses to evolve from their current state to sustainable and globally competitive positions. If necessary, targeted measures such as grants, tax holidays, or subsidies should be provided to provide the needed boost .

The administration has again urged Nigerians to be patient, especially with its ongoing reforms. How can the government address the lingering hardship in the country?
While we believe that the ongoing reforms are necessary, there will be a need for the government to implement the reforms with a human-centred approach. Where necessary, palliatives and other relief measures should be introduced to cushion the impact on those most affected. We acknowledge the government’s effort to ameliorate the challenges; it is, however, important that the channels to distribute these reliefs are foolproof, credible, and verifiable. This will ensure that the assistance reaches the intended beneficiaries who genuinely need it.

Currently, it is believed that many policies are stifling businesses negatively. Are the Federal Government’s ongoing reforms creating a positive impact in the private sector?
The reforms, in reality, will take some time to correct the ills and recklessness of the past. While the ills are being corrected, it is important that other arms of the government, such as the legislature and especially the regulatory authorities, play their part in promoting enterprise sustainability. A big gap in the achievement of the government’s economic recovery agenda is the regulatory space. We hope that the ongoing efforts to address these gaps will start to yield desirable fruits as quickly as the first quarter of 2025.

What is your take on the N49.7 trillion budget presented by President Bola Tinubu to the National Assembly?
The budget had been presented, and the assumptions were largely ambitious. The government has its priorities, and sometimes, it is difficult to question those priorities. While we will continue to put the government on its toes to implement what has been presented or what would be passed into law as the budget, we will also continue to draw the government’s attention to the likely pitfalls and make sound alternative policy recommendations. With our population and the need to fast-track development, the N49.7 trillion budget is not too much. Some practicality of some assumptions left much to be desired, such as the daily crude production and Naira exchange rate, among others. But sometimes, those in government have some information that you don’t have. We will stay on the side of caution and give the government the benefit of the doubt. We believe that with focused implementation and enhanced fiscal discipline, much can be achieved.

High unemployment figures are a major socio-economic concern, especially among the youth. What specific measures would you want the government to take towards addressing this?
We have been on the issue of a rising unemployment rate for many years. It seems we keep complaining of the effects, while we continue to feed the cause. There is no magic to job creation. It has been established that for every 10 jobs created, the private sector creates eight or nine. Thus, if you want to drastically reduce unemployment, get the private sector back on the path of sustained growth. The government should frontally deal with any obstacle to private sector growth. Be it regulatory challenges, legislative incursions, or the multifaceted inherent contradictions in the system. Secondly, we need to give more attention to technical and vocational skills development (TVSD). This is another veritable pathway to resolving the unemployment quagmire. Lastly, we must take another look at the University and Polytechnic system. The question of the employability of Nigerian graduates will continue to face us. While the government will do its part by creating a favourable environment, businesses must also operate responsibly, while other stakeholders in the employment value chain must also contribute effectively to resolving the issues.

What is your take on the ongoing tax reform bills currently before the National Assembly, even as the Nigeria Labour Congress (NLC) seeks its input into the bill?
We believe strongly that the benefits far outweigh the various concerns. We are in support of the Tax Reform Bill and urge an expedited passage. It is worrisome that many stakeholders did not give the tax reform consultation due attention when the committee was engaging stakeholders. We believe that the Bill should be supported, even as the committee is still engaging stakeholders. If there are specific and not generic concerns, such can be addressed and if there is a fundamental need to amend the Bill later, why not? Our current reality demands that we move forward with this very important reform that will reshape our tax administration landscape. We cannot allow our future to be held hostage by fear.

With the challenges the citizens are going through vis-à-vis the rising cost of living and inflation, is the current N70,000 national minimum wage enough? What is the level of implementation in the private sector?
In all honesty, the current economic situation has eroded the value of the N70,000 national minimum wage. The consolation for the private sector workers is that most, if not all, private sector employers are currently paying above the N70,000, which is commendable. As the value of the minimum wage is being eroded, the value of business investment is also being eroded. Interest rates are worrisome, the Naira exchange rate is of great concern, and the activities of many regulators are also stifling businesses.  

What is NECA’s position on the return of cash scarcity across the country and the impact on small businesses and the informal economy operatives?
We have all clamoured for a cashless economy. An economy with high banking inclusiveness. If this scarcity is a strategy to achieve what the last administration mishandled, then great. However, in our quest for a cashless economy, deliberate efforts need to be made to protect the small and medium industries and also the informal sector. The process of reducing cash in circulation should be gradual to limit the shock and disruption that the policy might bring to the small but very important players in the market.  

How can the government deepen engagement with the Organised Private Sector of Nigeria (OPSN) to revive ailing businesses?
We commend the ongoing engagement and believe that it can be deepened. We hope that the government will continue to engage the real Organised Private Sector and not some select business owners. The institution of the Organised Private Sector of Nigeria, comprising Nigeria Employers’ Consultative Association (NECA), Manufacturers Association of Nigeria (MAN), NACCIMA, NASSI, and NASME, should be encouraged and saddled with the responsibility of getting the private sector behind the government’s policies and programs to grow the economy.

How does the challenge of brain drain affect organised businesses?
Brain drain is a double-edged sword. In one instance, your best hands are leaving to contribute to another country’s economy. In another breath, those who are leaving are adding to the quantum of remittances that come into the country. However, from a business point of view, every business needs great hands to help it survive, notwithstanding the advent of Artificial Intelligence. People remain a core part of business survival, and when the first 11 are leaving, it makes business sustainability more difficult.