How Exit Of 15 Multinationals From Nigeria In 3 years Affects Economy – NECA

5 months ago
1 min read

The Nigeria Employers’ Consultative Association (NECA) has raised the alarm over the departure of 15 major multinationals in the last three years, warning about the severe repercussions on the country’s economy.

In an interview, Adewale Oyerinde, NECA’s Director-General, highlighted the far-reaching effects, saying, “Over 20,000 employees have been impacted, leading to increased insecurity, rising child labor rates, and financial strain on households.”

Expressing deep concern about the escalating unemployment due to global divestment and local closures, Oyerinde cautioned, “This trend not only affects organized businesses but also government revenue and households.” NECA examined exits of longstanding companies like GSK, Sanofi, Procter & Gamble, and Nampak, raising concerns about the broader business ecosystem.

READ ALSO: GSK, JSM Exit Will Further Squeeze Nigeria’s Health Sector – Obi 

Highlighting the potential ripple effect, he said: “The departure of major corporations jeopardizes the sustainability of secondary businesses within the value chain, posing risks to their employees and existence. This crisis warrants urgent attention.”

Recent exits by Unilever Nigeria and Procter & Gamble further exacerbate the situation. Unilever exited specific markets, aiming for a “more sustainable and profitable business model,” while Procter & Gamble finalized its exit last year.

The call is clear: the country’s value chain faces a significant threat, demanding immediate action to safeguard businesses and mitigate the adverse impact on Nigeria’s economy.


MOST READ

Follow Us

Latest from Business

Don't Miss

Banks’ Recapitalisation Will Strengthen Nigeria’s Economy - UBA GMD

Banks’ Recapitalisation Will Strengthen Nigeria’s Economy – UBA GMD

Group Managing Director of United Bank for Africa