The Nigeria Employers’ Consultative Association (NECA) has expressed concern over the negative impact of government policies on businesses, particularly the manufacturing sector, which it says is being hindered by what it describes as “principalities and powers” within the government. The association lamented that the resulting business closures and job losses are a painful reality for the economy, leading to rising unemployment and insecurity.
In an exclusive interview with newsmen Adewale-Smatt Oyerinde, the Director General of NECA, shared the association’s concerns, likening the situation to a father grieving the loss of his children. He explained that when a business shuts down, such as when GSK (GlaxoSmithKline) exited Nigeria, it does not just affect the employees directly involved. “When GSK left, it had over 1,000 direct employees and many others in the supply chain. These closures mean we’ve effectively disabled over a thousand Nigerians from earning a livelihood,” he said.
Oyerinde further explained the cascading effects of such closures. “The school owners lose the ability to collect fees from the children of these employees. Landlords lose rental income from these workers. Even small businesses, like those selling tomatoes, suffer because people with no disposable income can’t afford to buy their goods.” He pointed out that the broader economy is deeply impacted when large companies with thousands of employees shut down. If 50 companies, each with 1,000 employees, close, this results in the loss of 50,000 jobs. These individuals, now without income, will no longer be able to contribute to the economy in the same way.
The ripple effect, according to Oyerinde, extends to everyone who relied on those workers’ spending, from market traders to landlords. He stressed that this has far-reaching consequences, including the rise in unemployment and insecurity that Nigeria is currently grappling with. “Unemployment and insecurity are among the direct outcomes of these closures,” Oyerinde concluded.
