The Nigeria Employers’ Consultative Association has expressed worry over the rising unemployment rate in the country.
In a release, the Director-General of NECA, Adewale-Smatt Oyerinde, noted the country’s high unemployment rate was having adverse effects on security and household well-being.
“We are concerned at the growing rate of unemployment in the country, made worse by the continuous divestment of global businesses and closure of local ones.
“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,” he asserted.
Oyerinde noted that the trend had dire consequences not only for organised businesses but also for labour, government revenue and households.
He averred, “The consequences of these massive job losses across sectors will continue to create insecurity challenges, increase the occurrence of child labour (as children will be forced to become breadwinners), adversely affect the disposable income of families, erode the purchasing power of individuals and drastically reduce economy’s output.”
While proffering solutions to the challenge, the NECA DG urged the government to urgently address the multi-faceted challenges currently being faced by organised businesses.
He mentioned that the harsh business environment had made local businesses uncompetitive.
“Government must urgently address regulatory and legislative bottlenecks that tend to stifle businesses rather than promote them. Continuous efforts must be made to promote locally made goods through the provision of critical infrastructures; urgent stabilisation of the foreign exchange market and ensuring that Ministries, Departments and Agencies are appraised not only by how much income they generate but also by how many businesses they facilitated or promoted,” he added.
Oyerinde claimed that the private sector was responsible for the creation of eight of every 10 jobs in the country and deliberate effort must be made to ensure its sustainability and competitiveness.
