Jobs at risk despite lower interest rates; employers remain cautious on hiring—NECA

The Nigeria Employers’ Consultative Association (NECA) says job losses remain a concern despite lower interest rates, warning that businesses remain cautious about hiring.

The director-general of NECA, Adewale-Smart Oyerinde, said this in an interview with journalists on Sunday in Abuja.

He said that although lower borrowing costs provide some relief for businesses and SMEs, economic uncertainties and high operational costs continue to slow employment growth.

“Lower interest rates offer businesses some breathing space, but the benefits have not fully translated into job creation.

“Employers are still cautious about expanding their workforce because many companies are focusing on stabilising operations amid rising production costs and market uncertainties.

“Businesses are restructuring and prioritising efficiency, which sometimes delays hiring decisions even when financing conditions improve.

“Without broader economic stability and reduced operational pressures, lower interest rates alone cannot drive significant employment growth,” he said.

According to him, restructuring sometimes results in cautious hiring or temporary workforce adjustments.
Mr Oyerinde noted that cautious recruitment had become a defining feature of Nigeria’s labour market as employers balance growth with financial sustainability.

The NECA boss said businesses were also focusing on cost management and operational efficiency to survive prevailing economic pressures. He added that policy consistency and improved regulatory coordination were necessary to strengthen investor confidence and support private sector expansion.

Mr Oyerinde added that reducing regulatory bottlenecks and improving the ease of doing business would encourage investment and job creation.
The NECA chief said that sustained economic reforms and supportive policies were essential to strengthen Nigeria’s productive sector and expand employment opportunities. NAN