The Nigeria Employers’ Consultative Association (NECA), the umbrella body for employers and voice of businesses in Nigeria, has raised the alarm over consequences of ongoing divestment of multinationals in Nigeria, saying no fewer than 20,000 direct employees have lost their jobs to such divestments in recent times.

The body raised the alarm in a statement titled: “Urgent Action To Arrest The Growing Unemployment Rate”, warning that the consequences of the massive job losses across sectors would continue to create insecurity challenges, and increase the occurrence of child labour among others.

Signed by its Director-General, Adewale-Smatt Oyerinde, the statement reads: “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 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.”

Expressing the association’s deep concerns, Oyerinde warned that “the consequences of this massive job losses across sectors will continue to create insecurity challenges, increase the occurrence of child-labour, adversely affect the disposable income of families, erode the purchasing power of individuals and drastically reduce economy’s output.”

Proffering solutions to this malaise, the NECA DG urged the government to urgently address the multi-facet challenges currently being faced by organised businesses.