Nigerian Businesses Recorded Over N1tr Losses Between 2022-2023, Says NECA DG

Harsh operating climate cost organized private sector over N1tr cumulatively between 2022-2023, the Director-General of Nigeria’s Employers’ Consultative Association (NECA) Mr Adewale-Smatt Oyerinde has disclosed.

In addition, many businesses were shut down with many others relocating to other climes which has necessitated the need for job security.

He harped on the need to have sustainable enterprises to create job security. Therefore, he advised that organized businesses have to do all that is legally permissible to protect enterprise sustainability, security of jobs and national development.

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“While we understand and note the current high cost of living, it is pertinent to state that there can only be jobs when enterprises are alive and sustainable.

“Between 2022-2023, organised businesses lost over one trillion naira cumulatively.

“Many businesses were shut down and others relocated to other climes; this makes the need for job security important”, he said.

This is also reflective of a UNDP report, which states that disruption in business operations was evident with at least two-thirds of businesses operating in the country having to close down during and after the pandemic.

Businesses also resorted to laying off employees to survive and shutdowns of enterprises severed crucial livelihood lines for households that depended on them for income.

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The lack of new business opportunities and reduction in capital investment further limited new job prospects.