The Nigeria Labour Congress (NLC) has expressed deep concern over the severe impact of the forex crisis on the country’s economy and has called for immediate action to stabilize the Nigerian Naira. In a statement issued by NLC President Joe Ajaero on Sunday, the organization attributed the depreciation of the national currency to the preference of government officials for foreign luxury products.
Ajaero cautioned that if the Naira continued to devalue against the US dollar, it could result in severe consequences for the economy. The NLC’s warning coincides with a scheduled meeting between organized labor and the Federal Government on the implementation of the Memorandum of Understanding regarding subsidy removal palliatives.
While the Investor & Exporter window has maintained relative stability at around N770 to N780 per US dollar, the parallel market, where most individuals and businesses obtain foreign exchange, has seen rates exceeding N1,000 per US dollar. The depreciation of the Naira in the parallel market has been attributed to a growing demand for foreign currency that surpasses the supply from the Central Bank of Nigeria.
This depreciation has led to challenges for manufacturers in obtaining raw materials, resulting in some companies considering layoffs or even closure. The weakening Naira has compelled manufacturers to cut production, reduce jobs, and limit raw material imports.
The NLC placed the blame on politicians who favor foreign goods and recommended that public officials support the Naira by purchasing locally manufactured products, including public vehicles for government use. The NLC called on public officials to act patriotically and refrain from buying foreign products, emphasizing that such actions negatively affect the Naira’s value.
The NLC stressed that every expenditure on foreign-made products diverts funds and jobs away from Nigeria, putting pressure on the national currency. On the other hand, purchasing locally manufactured goods supports local industries, creates jobs, reduces poverty, and strengthens the Naira.
The NLC urged the government to take decisive measures to protect the Naira and stabilize the economy. If the government does not address the crisis promptly, the NLC indicated it would take necessary actions to protect the Naira, the economy, and the nation as a whole.
Financial expert Mr. Okechukwu Unegbu suggested that increasing local production, promoting local consumption, and reducing imports could help stabilize and strengthen the Naira. He also recommended pricing commodities for export in Naira as a beneficial measure.
Meanwhile, the labor movement has announced plans to protest in Owerri, Imo State, due to ongoing disputes with the state government regarding worker layoffs and unpaid salaries. The NLC criticized the state government for violating the rights and privileges of workers, warning that they may take action on November 11, the day of the governorship election if the issues remain unresolved. The labor leader accused the state government of repeatedly breaching agreements, including outstanding salary arrears, the labeling of workers as ghost workers, vandalization of the NLC state Secretariat, discriminatory pay practices, non-compliance with the
National Minimum Wage, and unsettled gratuity arrears.
The NLC’s message underscores the urgent need for action to address the currency crisis and the rights of workers in Nigeria.