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NECA to FG, We are losing businesses to harsh conditions

NECA to FG, We are losing businesses to harsh conditions

By Anthony Okafor

Nigeria Employers’ Consultative Association, NECA, has called on the Federal Government to do more in providing necessary support and environment for businesses to thrive in the country, stating that the nation is losing key investors to harsh economic conditions.

This is coming against the backdrop of the recent development which led to Greif Nigeria Plc, marketers and manufacturers of steel drums, suspending its operations in Delta and Kaduna States.

The company suspended its operations temporarily at the beginning of February 2019 after poor outings for many months, which was attributed to overwhelming economic challenges.

In a statement made available to Newsbeats, the NECA’s Director-General Mr. Timothy Olawale, stated that many businesses were closing down due to the unfavourable business environment in the country.

According to him, “The association is concerned by the closure of businesses in the country. This trend impacts negatively on the nation’s revenue and increases the unemployment rate. It is public knowledge that 59-year-old Greif Nigeria Plc manufactures steel drums used for the production of iron and steel has suspended its operations.

“The recent suspension of operations of Greif Nigeria Plc and other manufacturing companies in the country are not good for the economy.

“It is sad to receive the news of the closure of the factory plants of the company in Delta and Kaduna states and ultimately the suspension of its Nigerian operations. Business closures have greater consequences for the nation as a whole as more Nigerians will join the labour market.

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“Beyond the income of families being truncated, unemployment figures will rise, social malaise will increase and government’s ability to generate income through Company and Personal Income Taxes will be reduced.

“There is no reason why interest-free loans, bail-out grants or tax holidays should not be given to businesses that have been certified as being on the brink of collapse,’’

Newsbeats gathered that the company, which had thousands of workers, now has less than 25 workers, according to a reliable source, which preferred anonymity.


 

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