The Nigeria Employers’ Consultative Association (NECA) has expressed concern about the escalating instances of business divestment, capital flight, and closures in Nigeria. NECA highlighted the critical role of private businesses in driving employment, economic growth, and capital flow in developing economies.
NECA’s Director-General, Adewale-Smatt Oyerinde, attributed the current trend of business relocation and divestment to unfavorable policy decisions over the last decade. He noted that several policies were either counterproductive, poorly timed, or not aligned with the country’s economic realities, leading to increased operational costs for companies.
Oyerinde emphasized that the negative consequences of these policy choices were evident, resulting in a “new normal” of divestments, capital flight, and business closures. He highlighted that this phenomenon had contributed to the perpetually high unemployment rate, escalating crime, and security issues in the country.
The Director-General pointed out that when businesses cease operations or move to more favorable environments, a significant number of Nigerians become unemployed, impacting tax revenue, social investments, and poverty rates. While acknowledging the current administration’s efforts to address private sector concerns, Oyerinde stressed that more urgent actions are required to address the predicament.
Opinion: The rising trend of business divestment and closures underscores the crucial need for well-thought-out and conducive policies that encourage private sector growth and sustainability. Addressing these challenges is paramount to reversing unemployment trends and fostering a more stable economic environment. The Nigeria Employers’ Consultative Association calls for urgent actions to address this concerning trend and promote a conducive business environment.