The Nigeria Labour Congress asked that the naira be stabilized immediately on Sunday, lamenting the terrible effects of the foreign exchange crisis on the country’s economy.
The fast decline of the national currency was attributed by NLC President Joe Ajaero, who made this claim in a statement on Sunday, to government officials’ fondness for high-end, foreign goods.
If the naira didn’t stabilize versus the US dollar, Ajaero threatened to unleash “a wave of devastating consequences” on the economy.
The Federal Government and organized labor were to meet today (Monday), but not before the NLC president issued a warning.
The Federal Government and organized labor will discuss the implementation of their Memorandum of Understanding on subsidy withdrawal palliatives during the meeting.
The NLC president said in a statement titled “Urgent action to stabilise the naira amidst alarming depreciation” that the general public and workers would suffer as a result of the weaker currency.
The parallel market, where the majority of people and companies receive their foreign exchange, traded at more than N1,000/$, while the investor and exporter window has remained comparatively stable at about N770 to 780/$.
The devaluation of the naira on the black market has been ascribed to a rise in demand for foreign exchange that is outpacing supply from the Central Bank of Nigeria.
Due to this downturn, firms are already having difficulty obtaining raw materials, and many are preparing to lay off employees or close their doors. The falling value of the naira forces manufacturers to reduce imports of raw materials, employment, and production.
In a statement signed by its president, the NLC warned that in order to stem the naira’s devaluation, public officials should give up their preference for foreign products.
In addition to making a statement, the labor leader spoke at a press conference on Sunday in Abuja.
During the press conference, Ajaero revealed that the Chief of Staff to President Femi Gbajabiamila had invited the union to the State House to discuss the implementation of the resolutions on subsidy removal palliatives.
“Hopefully, we may meet with the Federal Government tomorrow (today) to see whether or not the agreement with organized labor on the removal of fuel subsidy palliatives was met,” he stated.
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