The Nigeria Employers’ Consultative Association (NECA), the umbrella body for employers, has disclosed that over the last three years, at least 15 multinationals have either divested or partially closed operations in Nigeria. In an exclusive interview with The PUNCH, Adewale Oyerinde, the Director-General of NECA, expressed concern about the consequences of these actions on job losses, unemployment, and the broader business ecosystem.
Oyerinde highlighted that the organisations in question had a combined value-chain staff strength of over 20,000 employees. He warned that the ripple effects would extend beyond the immediate impact on the businesses themselves, affecting sectors such as labour, government revenue, and households. The NECA Director-General stressed that the rising unemployment resulting from global business divestment and local closures could lead to insecurity challenges, increased child labour, reduced disposable income for families, and eroded purchasing power.
The exits of prominent companies like GSK, Sanofi, Procter & Gamble, Nampak, and Unilever Nigeria have raised concerns about the sustainability of the broader business ecosystem. Unilever Nigeria, for example, announced its exit from the home care and skin cleansing markets in the country in November, citing the need to find a more sustainable and profitable business model. Procter & Gamble also announced its exit from Nigeria in the previous year.
Oyerinde emphasized the significance of the value chain, noting that the survival prospects of numerous enterprises serving as suppliers to major corporations are compromised when the primary businesses they cater to face extinction. The crisis within the value chain, according to NECA, deserves more attention to mitigate its adverse effects on businesses and the economy.
