NLC blames government officials for Naira's woes

NLC blames government officials for Naira’s woes

The Nigeria Labour Congress (NLC) expressed deep concern on Sunday over the severe impact of the foreign exchange (forex) crisis on the nation’s economy, calling for immediate measures to stabilize the Nigerian currency, the naira.

NLC President, Joe Ajaero, issued a statement on Sunday, in which he attributed the sharp decline of the national currency to government officials’ excessive affinity for foreign luxury products. Ajaero cautioned that if the naira continued to depreciate against the US dollar, the economy could face a cascade of adverse consequences.

Ajaero’s warning came ahead of a scheduled meeting between organized labor and the Federal Government, set to take place on Monday. During this meeting, both parties will evaluate the implementation of the Memorandum of Understanding they had previously agreed upon concerning subsidy removal palliatives.

In a statement titled “Urgent Action Required to Stabilize the Naira Amidst Disturbing Depreciation,” the NLC president emphasized that the repercussions of the weakening currency would be borne by the workforce and the general population.

While the investor and exporter window has maintained relative stability, with the exchange rate hovering around N770 to N780 per US dollar, the parallel market, from which most individuals and businesses obtain their foreign exchange, has experienced rates exceeding N1,000 per US dollar.

The depreciation of the naira in the parallel market has been attributed to a surge in demand for forex that surpasses the supply provided by the Central Bank of Nigeria. This decline has placed significant strain on manufacturers, making it difficult for them to secure essential raw materials. Consequently, numerous companies are contemplating staff reductions or potential closures due to the dwindling value of the naira, which has forced them to reduce production and cut back on both jobs and raw material imports.

In the statement released by the NLC, the labor union urged public officials to curtail their preference for foreign products as a means to combat the naira’s depreciation.

In addition to the statement, the labor leader addressed a press conference in Abuja on Sunday, disclosing that the union had received an invitation to the State House from the Chief of Staff to the President, Femi Gbajabiamila, for discussions on the implementation of agreements related to subsidy removal palliatives. Ajaero further noted that they were set to meet with the Federal Government to assess whether the previously agreed-upon resolutions concerning fuel subsidy removal palliatives had been adhered to. It was emphasized that the Minister of Labour and Employment, Simon Lalong, would not be included in any meeting with the Federal Government as organized labor had chosen to exclude him.