The Manufacturers Association of Nigeria (MAN) has hinted that over 6,000 direct and indirect jobs are expected to be lost as foreign companies close their production activities in the country. Multinational firms such as Sanofi, Unilever Nig, Procter & Gamble, GlaxoSmithKline, and Bolt Foods have either completely left or are wrapping up their exit processes out of the Nigeria production sector.
These companies have all cited different reasons why they took such decisions to leave Nigeria in recent months and terminate their on-ground operations. Some of these reasons which they say have had an impact on their business profitability and sustainability are rising interest rates, harsh business environment, regulatory and legislative obstacles forex volatility or challenges, and high inflation.
The Nigeria Employers’ Consultative Association (NECA) had also earlier shown concern that the continuous increase of the current exit of foreign companies from Nigeria would lead to a higher unemployment rate. NECA warned that if the government under President Bola Tinubu does not engage more with manufacturers, this trend would likely go on, not just with foreign companies but this trend might likely spread towards domestic manufacturers as well.
The Nigeria Employers’ Consultative Association (NECA) also explained that the trend of downsizing by both domestic and foreign businesses in Nigeria is an indication that businesses are not doing very well. There is therefore need to reduce production costs by companies. This they said will be very beneficial to both manufacturers and the consumers.
The consequences of these exits are already being felt as Nigeria is gradually being transformed into an import-focused market. These companies leaving mean that not less than 6,000 direct and indirect jobs have been taken away from the Nigerian economy. These are workers ranging from pharmacists, engineers, microbiologists, production officers, biochemists, chemists, to even doctors etc.
Godwin Fafemi Uche
Founder/CEO HighJobLink Limited
Credit: HighJobLink Limited
The CEO of HighJobLink Limited, an employment agency in Nigeria, Godwin Fafemi Uche, said the employees of these companies are the ones who would majorly bear the brunt of this shift in business strategy by these firms in Nigeria.
The President, of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, said that these international manufacturing firms planned to exit Nigeria due to reasons like the constant power crisis, as well as the unpredictability of the country’s foreign exchange rate.
