NECA warns of job, tax losses as businesses leave Nigeria
The Nigeria Employers’ Consultative Association (NECA) has warned that the rate of unemployment in the country is bound to increase as businesses continue to leave the country.
It also expressed concern over the imminent tax losses as a result of the relocation trend
Director-General of NECA, Adewale-Smatt Oyerinde, in a statement on Wednesday, noted that the private sector remainsis a catalyst for economic growth, being a major contributor to national income and the efficient flow of capital
“When businesses cease operations, divest or move to other profitable and hospitable environments, a large number of Nigerians become unemployed.
“Inadvertently, the country loses income from taxes, social investment is hindered and poverty holds sway,” Oyerinde said.
According to him, in most developing economies, private businesses account for over 93 per cent of employment, including formal and informal jobs, being a major contributor to national income and the efficient flow of capital.
NECA, therefore, called for more definitive and urgent intervention to address concerns of the private sector.
“Beyond the tax reforms activity and the provision of palliatives to select corporate entities, the government should, by deepening engagement with the Organised Private Sector, provide the right intervention.
“Also, incentivize not only to attract more Foreign Direct Investment but to also prevent more companies from shutting down, divesting or leaving the country.”
The association also urged the federal government to work collaboratively with the private sector with the view to developing and implementing action plans capable of promoting enterprise sustainability and competitiveness.
“Sectors such as cosmetics, services, pharmaceuticals, aviation, textile, maritime, construction and, in fact, the real sector should be prioritised as they have the capacity to generate jobs.
“Expeditious action should be taken to finalise the appointment of Ministers and constitution of Boards of Agencies to drive the economic programmes of the administration,” it added.
