NECA backs fuel subsidy reform, urges relief for businesses and households

By Boluwatife Oshadiya| October 21, 2026

Key Points

• NECA supports the Federal Government’s fuel subsidy reform but says its success must be measured by improvements in living standards, business operations and employment
• Director-General Adewale-Smatt Oyerinde says petrol averaging ₦1,400 per litre and diesel reaching ₦1,900 in some locations are increasing operating costs
• The employers’ association calls for targeted social protection and productive investment of oil revenue in electricity, transport, agriculture and other infrastructure

Main Story

The Nigeria Employers’ Consultative Association (NECA) has backed the Federal Government’s fuel subsidy reform while urging stronger support for households and businesses facing higher energy, transportation and operating costs.

NECA Director-General Adewale-Smatt Oyerinde made the position known in Abuja on October 20, 2026, while responding to calls by Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele for sustained subsidy reform, according to the supplied report.

Oyerinde said the reform should be judged by its effects on citizens’ welfare, business performance and job creation, rather than government revenue alone.

“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 expressed concern that petrol averaged ₦1,400 per litre and diesel ₦1,900 in some locations, increasing costs for businesses. He said micro, small and medium-sized enterprises (MSMEs) were particularly exposed to rising energy and transportation expenses, weak purchasing power and inadequate infrastructure.

“The increasing cost of petrol and diesel is putting enormous pressure on enterprises, threatening business sustainability, constraining expansion and placing jobs at risk,” Oyerinde said.

The NECA chief urged the government to strengthen transparent, adequately funded social protection programmes for vulnerable households and workers. He also called for collaboration among federal, state and local governments to ensure that subsidy savings and additional crude oil revenue produce measurable development outcomes.

Oyerinde identified electricity, transportation, roads, agriculture, healthcare, education and industrial infrastructure as priorities for investment. He also advocated improvements in agricultural storage, food processing and distribution to reduce post-harvest losses and moderate food inflation.

What’s Being Said

“Nigeria must resist the temptation to consume its oil windfalls. Additional revenue arising from higher crude oil prices presents an opportunity to address longstanding structural weaknesses in the economy,” said Adewale-Smatt Oyerinde, director-general of NECA.

Government response: The supplied report refers to Taiwo Oyedele’s call for sustained subsidy reform but does not include a direct quotation from the minister responding to NECA’s concerns. No independent analyst or other business association response is provided.

What’s Next

• The Federal Government’s response to NECA’s calls for targeted social protection and support for businesses will be an important development to monitor.
• Federal, state and local governments face pressure to demonstrate how subsidy savings and additional oil revenue are allocated to public services and infrastructure.
• Implementation measures on electricity supply, transport costs, agricultural infrastructure and business support will help show whether the reform is delivering the outcomes NECA has requested.

The Bottom Line

The Bottom Line: NECA’s position highlights the central test of subsidy reform: whether fiscal gains translate into lower structural costs, stronger business activity and improved household welfare. Without measurable progress in these areas, increased government revenue alone may not address the economic pressures the reform is intended to help resolve.