More reactions have continued to trail the massive divestment from Nigeria by some major foreign multinational companies because of challenging business environment. Spells more trouble for the beleaguered economy, commentators lament.
Latest to express their concern is the Nigeria Employers’ Consultative Assembly (NECA) reports Legit.ng. The representative of employers expressed worry over the repercussion of the recent developments, saying that over 20,000 jobs may be lost as a result of the exit of Procter & Gamble, GSK and other multinational companies.
In a statement titled, “Urgent action to arrest the growing unemployment rate.” signed by the Director-General, Adewale-Smatt Oyerinde the organization warned that the spate of divestment by these multinational firms could lead to massive job losses, with the implication of further increase in insecurity and other related issues such as child labour.
According to Mr Oyerinde, “It is worrisome to note that in the last three years, over 15 organizations 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 organized businesses but also for labour, government revenue and the household.”
In proffering solution, he stressed the need for the government to promptly tackle the multifaceted challenges currently bedeviling organized businesses, specifically regulatory and legislative obstacles which inhibits business growth. The NECA boss equally emphasized on the importance of promoting local or domestic products, enhancing infrastructure, urgently stabilize foreign exchange market and evaluate ministries, departments and agencies based on the revenue generation and the businesses they facilitate or promote.
Also lending his voice is the founder of Stanbic IBTC Bank, Atedo Peterside through his social media handle on X (formerly Twitter), he said “Another way to look at this @ProcterGamble exit story is that multiple investors who cherish the rule of law, policy consistency, macroeconomic stability, a level playing field, etc. are running away from Nigeria. They are being ‘replaced’ only partially by investors who know how to ‘partner’ with politicians and/or game the system through waivers, exemptions, etc.”
Earlier, the Presidential Candidate of the Labour Party and former governor of Anambra State, Mr. Peter Obi, who is equally an accomplished businessman had reacted painfully to the exit of more multinational firms from Nigeria due to low productivity and grappling economy. He lamented that Nigeria’s investment profile is in the negative under Bola Tinubu’s government.
Procter & Gamble is the third multinational company to announce their exit from Nigeria, following in the footstep of British giant pharmaceutical firm, GlaxoSmithKline (GSK) and French owned Sanofi-Avantis Nigeria Limited.