The Nigeria Labour Congress (NLC) has expressed deep concern over the profound impact of the forex crisis on the nation’s economy and has made a compelling demand for the immediate stabilization of the Nigerian currency.
NLC President, Joe Ajaero, conveyed this critical message in a statement issued on Sunday, where he attributed the depreciation of the national currency to the preferences of government officials for foreign luxury products. Ajaero warned that if the naira’s value continued to plummet against the American dollar, the nation’s economy would face a “wave of devastating consequences.”
This warning from the NLC president comes as organized labor and the Federal Government are set to convene for a meeting scheduled for today (Monday).
At the meeting, the Federal Government and organized labor will review the progress made in implementing the Memorandum of Understanding related to subsidy removal palliatives.
In a statement titled, “Urgent Action to Stabilize the Naira Amidst Alarming Depreciation,” President Ajaero stressed that the weakened currency’s repercussions would be felt by both workers and the general population.
While the investor and exporter window has maintained relative stability at approximately N770 to N780 per U.S. dollar, the parallel market, which serves as the primary source of forex for most individuals and businesses, has seen rates soar to over N1,000 per U.S. dollar.
The depreciation of the naira in the parallel market is primarily attributed to an escalating demand for foreign exchange that exceeds the supply from the Central Bank of Nigeria. This decline has placed manufacturers under significant pressure to secure raw materials, resulting in many companies considering layoffs or even shutting down operations. With the dwindling value of the naira, manufacturers are forced to make painful cuts in production, employment, and imports of essential raw materials.
The NLC, in a statement signed by its president, emphasized the necessity for public officials to discontinue their penchant for foreign goods in order to counteract the depreciation of the naira.
In addition to the statement, the labor leader conducted a press conference in Abuja on Sunday. During the press conference, Ajaero disclosed that the union had been invited to the State House by the Chief of Staff to the President, Femi Gbajabiamila, to evaluate the implementation of the resolutions related to subsidy removal palliatives.
He remarked, “Hopefully, we may meet tomorrow (today) with the Federal Government to ascertain whether the agreement with organized labor regarding fuel subsidy removal palliatives has been upheld. If this meeting takes place, the Minister of Labour and Employment (Simon Lalong) will not be in attendance, as we refuse to participate in any meeting with the Federal Government that he attends.”
The NLC had previously accused Lalong of supporting a faction of the National Union of Road Transport Workers and encouraging them to hold their own delegate conferences, both at the zonal and national levels, in an attempt to legitimize the group. Given these allegations, Ajaero contended that a meeting with the minister would be unproductive, as he seems to lack control over labor relations.
Confirming the proposed meeting for today, the National Vice President of NLC, Adewale Adeyanju, assured that the organized labor would communicate the outcome of the meeting to the public. He stated, “I think the government knows what to do because we signed a communiqué with the government. So, the communiqué is binding on the two parties. Whatever the outcome is, you will hear from us to know the next action. We are meeting on Monday (today), after which we will determine the next course of action. For now, I cannot preempt my leaders, so let us see what tomorrow will look like.”
Additionally, the Secretary General of the Trade Union Congress, Mr. Toro Nuhu, noted, “The organized labor will meet with the Federal Government to assess what has been achieved and what remains to be done.”
In the statement addressing the forex crisis, the NLC put forth several recommendations for the Federal Government, led by President Bola Tinubu, to “rescue” the naira. The NLC urged the government to actively “protect” the naira by prioritizing the purchase of locally manufactured goods, including public vehicles for government officials, and called upon public officials to exhibit patriotism by refraining from buying foreign products.
