The Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government to halt the on-going trend of mass exodus of multi-national companies from Nigeria.
NECA advocates for strategic intervention as a proactive step in mitigating the impact of the multi-dimensional challenges currently being faced by businesses, even as it commended the Federal Government for supporting the Small and Medium Enterprises, and manufacturers through the disbursement of the N125 billion Presidential Palliative Programme.
The Employers Consultative Association emphasised the immediate need for decisive measures to stop companies divesting from the country.
Speaking in Lagos, the Director-General of NECA, Adewale-Smatt Oyerinde, noted that in the last few years strong brands both multinationals have either closed shop or divested fully or partially stating, “While we commend the Federal Government for the disbursement of the intervention funds, we urge a quick and definitive action to arrest the continuous exit and divestment of legitimate organisations in Nigeria.
“These regrettable departures will persistently undermine the Federal Government’s efforts to attract Foreign Direct Investment, rendering its initiatives ineffective”.
Highlighting the probable factors behind these closures, the NECA boss asserted that the challenging business landscape, marked by stringent regulatory and legislative activities, insufficient infrastructure, and policy inconsistencies, collectively exacerbates the difficulties faced by businesses.
“Regulatory bodies tasked with fostering business growth persist in prioritising revenue generation at the expense of their core mandate, while legislators, in the guise of oversight functions, consistently create impediments for organized businesses, hindering their operations”, Oyerinde said.
He added that the contradictions and self-disruptive tendencies of many federal and state Institutions can only be imagined, as they negate the efforts of the President to attract Foreign Direct Investment.
Oyerinde earnestly implored the President, as well as the Minister for Finance and the coordinating Minister of the Economy, to prioritise the survival of local businesses as the primary step before actively seeking Foreign Direct Investment.