Organised Labour has called on President Bola Ahmed Tinubu to reverse policies on currency devaluation and high energy costs, which they argue have plunged Nigerians into deeper economic hardship.
The appeal was made during the 6th Quadrennial and 13th National Delegates Conference (NDC) of the National Union of Shop and Distributive Employees (NUSDE) in Ibadan, Oyo State, over the weekend.
Speaking at the event, NUSDE President Aminu Megbontowon lamented the severe challenges facing workers and businesses, blaming recent government policies for exacerbating the nation’s economic woes.
“Nigerian workers and businesses in the country are facing difficult times because of some of the policies implemented by this government,” Megbontowon said.
“The cost of energy is provocatively high, and this has affected production, service, and workers’ welfare negatively. For instance, there is no justification for petroleum products to be over ₦1,000 considering Nigeria is an oil and gas-producing country, while the purchasing power of Nigerians remains very low.”
Megbontowon highlighted that the recent hike in electricity tariffs, which rose from ₦68 to ₦227, had further increased production and living costs, making them unaffordable for the majority of Nigerians.
Economic Fallout and Job Losses
He painted a grim picture of the consequences, noting that many factories are unable to sell their products due to reduced consumer purchasing power.
This, he explained, has led to the collapse of several companies, resulting in massive job losses.
“Invariably, we are losing members daily due to redundancies and job closures,” he added.
“The Nigerian economy needs cheaper energy, single-digit interest rates, and basic infrastructure to support the growth of production and service industries and compete globally.”
Currency Devaluation and Floating Naira
The floating of the Naira, a policy introduced in June 2023 to attract foreign investment, has faced significant criticism.
Although the Central Bank claimed it would stabilise the currency and reduce market distortions, the move has led to skyrocketing inflation and a drastic erosion of purchasing power, particularly in an import-dependent economy like Nigeria’s.
“The devaluation of the Naira has made imported goods and raw materials unaffordable. We do not see any benefit derivable from Naira devaluation when the country is largely an import-dependent economy,” Megbontowon stated.
Demands for Immediate Action
The NUSDE leader urged the Tinubu administration to take immediate steps to alleviate the economic burden on Nigerians.
“To arrest the rising cost of living, inflation, service costs, and production costs, President Tinubu should immediately reduce energy costs (electricity and petroleum products) drastically. He should reverse the floating and devaluation of the Naira so that goods and services, including raw materials, will become affordable,” Megbontowon said.
He also called for reduced lending rates to single digits to encourage investments and urged massive public investment in infrastructure, including electricity, refineries, roads, schools, and hospitals.
“These steps are essential to fostering industrialisation and enabling the growth and development of the Nigerian economy,” he concluded.
Echoing Broader Sentiments
Organised Labour’s concerns align with broader public sentiment, as Nigerians continue to grapple with high inflation, increased energy costs, and diminishing economic prospects.
Whether the government will heed these calls remains to be seen, but the pressure for immediate intervention is mounting.
