The Nigeria Employers’ Consultative Association (NECA) has advised the Federal Government to reconsider its decisions on fuel subsidy removal and the floating of the national currency, the naira. NECA warned of a potential unemployment crisis amid the current harsh economic conditions.
NECA, representing employers nationwide, criticized the government’s policies since 2023, stating they are detrimental to the private sector, which is a major employer in the economy.
Mr. Adewale-Smatt Oyerinde, NECA’s Director-General, highlighted several measures negatively affecting businesses, including currency redesign, fuel subsidy removal, forex floating, tax increases, and adjustments in import clearance rates. These policies, he argued, are pushing many private businesses to the brink of collapse.
Citing statistics from the National Bureau of Statistics (NBS), NECA emphasized a rise in unemployment rates, signaling a potential crisis. Oyerinde stressed the importance of addressing the underlying causes of this unemployment surge and finding solutions to prevent further deterioration.
Moreover, NECA expressed concern over the recent departure of multinational companies like GlaxoSmithKline and Procter & Gamble, warning that more companies could follow suit if the current unfavorable business environment persists. They noted that downsizing has become a common strategy for companies trying to survive the challenging economic landscape, with detrimental effects on employment.