The Nigeria Employers’ Consultative Association has issued a stark warning about the repercussions of the ongoing divestment of multinationals in Nigeria, revealing that over 20,000 direct employees have lost their jobs in recent times due to such divestments.

NECA, recognized as the umbrella body for employers and a key voice of business in Nigeria, expressed its concerns in a statement titled “Urgent Action to Arrest the Growing Unemployment Rate.”

The association highlighted the potential consequences of widespread job losses across various sectors, emphasizing the likelihood of increased insecurity challenges and a surge in child labor.

The Director-General of NECA, Adewale-Smatt Oyerinde, emphasized the gravity of the situation, 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.”

Oyerinde pointed out that in the past three years, more than 15 organizations, with a combined workforce of over 20,000 employees, have either divested or partially closed operations.

He underscored the far-reaching effects of these actions on businesses, labor, government revenue, and households.

Highlighting the consequences, Oyerinde warned that the massive job losses could lead to increased insecurity, a rise in child labor, a negative impact on family income, erosion of individual purchasing power, and a significant reduction in the country’s economic output.

Proposing solutions to address the situation, NECA urged the government to promptly tackle the multifaceted challenges faced by organized businesses.

The Director-General emphasized the need to create a favorable business environment by addressing regulatory and legislative bottlenecks, promoting locally-made goods through critical infrastructure provision, stabilizing the foreign exchange market, and evaluating government agencies based on their support for businesses.

Oyerinde stressed the importance of sustaining and enhancing the competitiveness of the private sector, noting, “The private sector creates eight out of every 10 jobs, and deliberate effort must be made to ensure its sustainability and competitiveness.”