15 multinationals exit Nigeria, leading to soaring job losses 

Nigeria grapples with a rising unemployment crisis as 15 multinational corporations have pulled out of the country in 3 years, leaving a trail of job losses and economic uncertainty. 

This worrisome trend was revealed by the Director-General of Nigeria Employers’ Consultative Association (NECA), Adewale Oyerinde, in an interview with The PUNCH.

Oyerinde issued a stark warning about the far-reaching consequences of the substantial job losses, stressing that the fallout could result in heightened insecurity challenges and an increase in child labour.

He expressed deep worry over the impact on both organised businesses and various sectors, emphasising that over 20,000 employees, spread across the divesting organisations, now face an uncertain future.

The NECA boss highlighted the broader implications on the nation, citing adverse effects on government revenue, households, and the overall labour force.

“It is worrisome to note that in the last three years, over 15 organisations with a combined value-chain staff strength of over 20,000 employees have either divested or partially closed operations.

“This has dire consequences not only for organised businesses but also for labour, government revenue and the households,” he said.

Oyerinde further expressed concerns about the rising unemployment rate in the country, attributing it to the combined factors of global business divestment and local closures.

According to him, the repercussions of massive job losses extend beyond economic concerns, affecting societal aspects such as increased child labour. 

He outlined the potential consequences on disposable income, family livelihoods, purchasing power, and the overall output of the economy.

The departure of significant players like Unilever Nigeria, GSK, Sanofi, Procter & Gamble, Nampak, and others with a long history in the Nigerian market raises alarms about the broader impact on the business ecosystem. 

Unilever Nigeria, for instance, cited the pursuit of a more sustainable and profitable business model as the reason for exiting certain markets in the country.

Oyerinde stressed that within the value chain, numerous enterprises serving as suppliers to these major corporations now face a compromised sustainability, putting their survival at risk. 

He underscored the urgent need for attention to the crisis within the value chain, stressing that the ripple effect could lead to the demise of secondary businesses and put their employees in jeopardy.

Procter & Gamble’s recent announcement of its exit from Nigeria adds to the growing list of multinational departures, intensifying concerns about the nation’s economic stability and the wellbeing of its workforce.