NECA warns of worsened unemployment as 15 companies shut down operations in Nigeria

Nigeria Employers’ Consultative Association (NECA, has disclosed that in the last three years, over fifteen 15 organisations have closed operations in Nigeria.

NECA’s director general, Adewale-Smatt Oyerinde in a statement said the firms have combined value-chain staff strength of over 20,000 employees who have either divested or partially closed operations.

According to him, the situation has dire consequences not only for organized businesses but also for labour, government revenue and the households.

NECA’s DG who expressed worry over the situation said the continuous divestment of global businesses and closure of local ones has led to the growing rate of unemployment in the country.

He said the consequences of this massive job losses across sectors will continue to create insecurity, 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 the economy’s output.

While proffering solutions to this malaise, he urged the government to urgently address the multi-facet challenges currently being faced by organized businesses.

Oyerinde noted: “The harsh business environment has made local businesses to be uncompetitive. 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” The private sector creates 8 out of every 10 jobs and deliberate effort must be made to ensure its sustainability and competitiveness.”