Tinubu’s Economic Reforms Yet to Deliver Full Benefits to Businesses – NECA

The Nigeria Employers’ Consultative Association (NECA) has stated that businesses across the country are yet to fully benefit from the ongoing economic reforms by the Federal Government.
The Director-General of NECA, Mr Adewale-Smatt Oyerinde, said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja, while assessing the administration’s economic performance.
Oyerinde said the removal of fuel subsidy and liberalisation of the foreign exchange market were steps that showed government’s commitment to market-driven economic policies and better transparency across sectors.
The reforms had improved fuel availability, reduced recurrent supply interruptions and sent a signal of policy consistency to local and foreign investors, he said.
He said there were signs of rising investor confidence, but many domestic players, especially Micro, Small and Medium Enterprises (MSMEs) were still grappling with operational challenges.
He stated that depreciation in the value of naira had increased production costs, affected competitiveness and raised operational risks for many businesses.
“Many private sector players are yet to reap the benefits of the reforms, as they continue to grapple with inflation, energy costs and exchange rate volatility,” he said.
“Businesses are feeling the heat as a result of the declining purchasing power of consumers and increasing cost of production. Some are even fine-tuning their investment plans and operations in line with the current economic realities,” Oyerinde said.
Oyerinde said developments in housing, industrial investments and local petroleum refining have created opportunities and contributed to an improved fuel supply on infrastructure and refining.
But he said power supply was a big challenge for businesses, citing persistent grid instability and reliance on alternative energy sources.
“The number one constraint to business productivity and competitiveness across the country is the insufficient electricity supply, despite the ongoing reforms in the power sector,” he said.
Oyerinde said that while some macro-economic indicators like foreign reserves and government revenues had improved, the gains had yet to broadly trickle down to business operations and household welfare.
“Inflation, high energy prices, multiple taxation, logistics challenges and weak consumer spending continue to constrain productivity and limit business expansion,” he said.
The NECA director-general said employers were wary of hiring on a large scale amid high borrowing costs, foreign exchange volatility and rising operating expenses.
He thinks sustainable job creation will rely on more profound structural reforms that lower the cost of doing business and increase access to affordable finance.
He charged government to concentrate on stable power supply, reduce energy cost, harmonise tax, policy consistency and foreign exchange stability to fast-track economic recovery and build investor confidence.
Oyerinde also called for more investments in technical and vocational education, digital skills acquisition and stronger public and private sector partnerships to boost workforce readiness and enterprise growth.
He called for patronage of made in Nigeria goods, infrastructure development and improved security in key business and investment corridors, to support local production.
Oyerinde was hopeful that continuous reforms and targeted interventions would allow businesses to enjoy wider benefits that could drive growth, employment and long term economic development.
N4.5trn market gain in May driven by banking, consumer stocks
The equities market, however, continued to build on positive momentum in May as investors pocketed N4.514 trillion as renewed buying interest in financial services and consumer goods stocks lifted overall market performance.
The market capitalisation appreciated by 2.89 per cent to close at N160.508 trillion, compared to N155.994 trillion recorded at the beginning of the month.
Also, the All-Share Index (ASI) increased by 8,107.66 points or 3.35 per cent to close at 250,385.47 from 242,277.81 as at end of April.
But the performance fell short of the impressive rally recorded in April when investors posted gains of N26.185 trillion.
The rally in the markets in May was led by gains in financial services, consumer goods and select industrial stocks.
Dr Bennett Eze, Head of Research and Development, Chartered Institute of Stockbrokers, told the News Agency of Nigeria (NAN) in Lagos on Sunday that the performance was a reflection of a more cautious and selective investment environment.
Eze attributed the slower growth recorded in May to profit-taking by investors after the historic rally witnessed in April.
“Many investors took profits, particularly in banking, industrial and consumer goods shares, while the market also entered a consolidation phase as investors reassessed stock valuations,” he said.
“Slower growth in the market in May could also be related to rotation into fixed income instruments, valuation concerns and global uncertainties.
“While the equity market is attractive, the relatively high yields in the fixed income market continue to attract institutional funds and this reduces the strength of inflows into equities.
“Some very strong stocks got very overbought after April’s run, and that has made investors a bit more selective about putting new capital to work.
“Persistent concerns around oil prices, geopolitical developments and the trajectory of global monetary policy also led to a more cautious approach from foreign investors,” he said.
Eze said the relative stability in the foreign exchange market and the increasing confidence in the ongoing economic reforms have further strengthened investor confidence.
He added that demand for fundamentally strong companies was also helped by dividend-related positioning and corporate actions.
Eze looked forward to a brighter market outlook for June and the rest of 2026, but cautioned that there could be more volatility.
He expects the market to stay bullish in June, but with investors more focused on sustainability of earnings rather than momentum buying.
He also was looking for occasional pullbacks in the wake of the big gains in the first five months of the year.
Persistent exchange-rate stability can attract more foreign portfolio inflows.
Equities valuations could be lifted by moderating inflation and possible monetary easing later in the year.
“There is expectation of strengthening of confidence on financial stocks by recapitalisation of banking sector.
‘Given the long-term return prospects, pension funds and institutional investors are likely to retain significant exposure to equities.
“But key risks are inflationary pressures, oil price volatility, potential weakness in corporate earnings and political positioning ahead of the 2027 election cycle,” he said.
On sectoral outlook, Eze said banking stocks were the major attraction of the market, with stronger capital bases, robust earnings potential, digital banking expansion and improved investor confidence following recapitalization efforts.
He also noted that consumer goods, industrial goods, insurance, energy and telecommunications stocks are expected to benefit from improving economic conditions, infrastructure spending, sector reforms as well as strong cash flow generation.
During the same month, the market witnessed 18 trading sessions, out of which 11 were bullish and seven were bearish.
At the end of the review period, trading activities showed that investors traded 21.120 billion shares valued at N971.628 billion in 1,453,439 deals.
This was an improvement from the 15.596 billion shares valued at N848.972 billion traded in 1,113,650 deals in April.
Major gainers included Guaranty Trust Holding Company which went up from N135 to N137 and Ecobank Transnational Incorporated which jumped from N80.60 to N97.40.
First Holdco rose to N70 from N64.65 while United Bank for Africa moved from N42.75 to N44.50.
Airtel Africa gained from N3,021.30 to N3,655.70, Eterna from N32.80 to N34.45 and Learn Africa from N9.30 to N12.75.
Berger Paints also gained significantly, as it moved from N81.75 to N147.60 during the month.
Nigerian Aviation Handling Company declined from N258 to N189.50 and Guinness Nigeria from N497 to N402.60 on the losers chart.
Access Holdings dropped from N27 to N24.05, MTN Nigeria dropped from N915 to N820 while Aradel Holdings dropped from N2,024 to N1,933.80.
Likewise, the share prices of TotalEnergies Marketing Nigeria and Conoil closed flat at N640 and N194, respectively, during the month.
The Nigerian Stock Exchange (NSE) said it would switch to a T+1 settlement cycle from Monday, June 1, NAN reports.