The Nigeria Employers’ Consultative Association (NECA), the apex organization representing employers in Nigeria, has raised an alarm over the exodus of multinational companies from the country. According to NECA’s Director-General, Adewale Oyerinde, at least 15 multinationals have either divested or partially closed their operations in Nigeria over the past three years, significantly impacting the country’s workforce and economy.
In an exclusive interview with The Media Talk Africa, Oyerinde highlighted the dire consequences of this trend, expressing concerns about the escalating job losses across various sectors. NECA emphasized that the repercussions of these multinational exits go beyond just the businesses and employment, extending to issues such as insecurity challenges and the proliferation of child labor.
Oyerinde underscored the gravity of the situation by noting that the combined staff strength of the affected organizations amounted to over 20,000 employees. The departure of these companies, some of which have been operating in Nigeria for decades, has far-reaching effects on the overall business landscape and employment scenario. Prominent companies like GSK, Sanofi, Procter & Gamble, and Nampak have bid farewell to the Nigerian market, posing significant concerns about the broader business ecosystem and the sustainability of their value chain.
The ramifications extend beyond direct employment, with NECA emphasizing that the departure of these major corporations threatens the survival of numerous enterprises in the supply chain, putting their employees and the entire value chain at risk. This crisis within the value chain, according to Oyerinde, warrants increased attention and intervention to avert a domino effect on the economy and employment sector.
The exit of Unilever Nigeria from the home care and skin cleansing markets, followed by Procter & Gamble’s departure, further underscores the growing trend of multinational corporations reevaluating their business models in Nigeria. These exits have raised significant concerns about the overall impact on the economy, local businesses, and the workforce. NECA’s call for attention to this issue is a reflection of the urgent need to address the challenges stemming from the exodus of global corporations from Nigeria.
The evolving situation necessitates proactive measures from the government, business community, and relevant stakeholders to mitigate the adverse effects on employment, businesses, and the broader economy. As NECA amplifies the urgency of the matter, the spotlight is on the collective efforts required to navigate the challenges posed by the exodus of multinational companies from Nigeria.
