The Nigeria Employers’ Consultative Association (NECA) has issued a stern warning regarding the adverse impacts of ongoing divestments by multinational corporations in Nigeria, revealing that over 20,000 direct employees have lost their jobs.
In a statement titled “Urgent Action to Arrest the Growing Unemployment Rate,” NECA revealed that over 20,000 direct employees have lost their jobs due to recent divestments, raising concerns about escalating unemployment rates.
NECA, the umbrella body representing employers and the voice of business in Nigeria, emphasised the far-reaching consequences of these job losses across various sectors.
Adewale-Smatt Oyerinde, the Director-General of NECA, highlighted the alarming statistics, stating, “We are concerned at the growing rate of unemployment in the country, made worse by the continuous divestment of global businesses and closure of local ones.
“It is worrisome to note that in the last three years, over 15 organisations with a combined value-chain staff strength of over 20,000 employees have either divested or partially closed operations.
“This has dire consequences not only for organized businesses but also for labour, government revenue and the households.”
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Expressing the Association’s deep concerns, Mr Oyerinde warned that “the consequences of this massive job losses across sectors will continue to create insecurity challenges, increase the occurrence of child-labour (as children will be forced to become bread-winners), adversely affect the disposable income of families, erode the purchasing power of individuals and drastically reduce economy’s output.”
Proffering solutions to the critical issue, Oyerinde urged the government to take immediate action in addressing the multifaceted challenges faced by organized businesses.
“The harsh business environment has made local businesses to be uncompetitive. The government must urgently address regulatory and legislative bottlenecks that tend to stifle businesses rather than promote them.
“Continuous efforts must be made to promote locally-made goods through the provision of critical infrastructures; urgent stabilization of the foreign exchange market and ensuring that Ministries, Departments and Agencies are appraised not only by how much income they generate but also by how many businesses they facilitated or promoted,” he concluded.