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Thu, Aug 10, 2023 1:05 PM

Unemployment and Insecurity to Worsen as Businesses Exit Nigeria, NECA Warns

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Unemployment and Insecurity to Worsen as Businesses Exit Nigeria, NECA Warns
The Nigeria Employers' Consultative Association (NECA) has expressed concern over the mass exodus of businesses and investment from Nigeria, stating that this trend will contribute to the worsening unemployment and insecurity rates in the country. NECA's Director-General, Mr. Adewale-Smatt Oyerinde, emphasized the need for the Federal Government to collaborate with the private sector to mitigate the emerging catastrophic effects of businesses leaving the country.

The Nigeria Employers' Consultative Association (NECA) has expressed concern over the mass exodus of businesses and investment from Nigeria, stating that this trend will contribute to the worsening unemployment and insecurity rates in the country. NECA's Director-General, Mr. Adewale-Smatt Oyerinde, emphasized the need for the Federal Government to collaborate with the private sector to mitigate the emerging catastrophic effects of businesses leaving the country.

The recent announcement of GlaxoSmithKline's imminent exit from Nigeria serves as a stark reminder of the challenges faced by the country's economy. When businesses cease operations, divest, or relocate to more favorable markets, the immediate impact is a surge in unemployment rates. The closure of these businesses results in job losses for many Nigerians, exacerbating the already high levels of unemployment.

The ripple effect of a business exodus is not limited to job losses alone. Oyerinde highlighted that Nigeria stands to lose valuable income from taxes when businesses relocate, reducing the revenue available for government programs and social investments. This loss of revenue can hinder the government's efforts in poverty alleviation and socio-economic development.

Furthermore, the exit of businesses creates a void in the market, which can lead to reduced competition and limited choices for consumers. This could ultimately result in higher prices for goods and services, compounding the economic challenges faced by ordinary Nigerians.

In addition to the economic implications, the increasing number of unemployed individuals adds to the country's security concerns. Without gainful employment opportunities, many young people may be tempted to engage in criminal activities in order to survive. This further exacerbates the existing security challenges faced by Nigeria.

Oyerinde stressed the urgent need for the government to collaborate with the organized private sector to address this emerging catastrophe. NECA recommends that the government create an enabling environment for businesses to thrive, implementing policies that attract and retain investments. By fostering a conducive business climate, Nigeria can encourage businesses to stay and new ones to invest, thereby creating employment opportunities and bolstering the economy.

In conclusion, the mass exodus of businesses and investment from Nigeria poses a significant threat to the country's socio-economic fabric. The resulting increase in unemployment rates and insecurity highlights the urgent need for collaborative efforts between the government and the private sector. It is crucial for Nigeria to create an attractive and stable business environment that encourages businesses to remain and invest. Only through such measures can the country address the challenges of unemployment and insecurity and pave the way for sustainable economic growth.

Source of content: OOO News 2023-08-10 News

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