Labour, captains of industry warn, more jobs, businesses may lost down

By allcitynews.ng

That the current regime is clocking one year in office by May 29 2024 May not longer be news to most people.

But the fresh news is, to avoid falling from the same banana peels that led to its near zero performance during his first one year in office, unionists and captains of industry have urged President Bola Ahmed Tinubu to be more focus on security, electricity, industrialisation in order to give his governance more result-yielding one.

Expressing disappointment over his first one year in office, they cited the hike in electricity tariff despite the near-zero electricity supply, insecurity, hike in prices of food and general hardship in the land as their reasons for scoring BAT’s first one year in office low.

With over two million job loss prediction by International Labour Organisation (ILO) in year 2024, as over 3, 567 jobs have been lost within Manufacturing Association of Nigeria (MAN) and coupled with 767 firms that had closed down, then unionists and chieftains of industry have charged BAT to create more conducive business environment towards achievement of industrialisation that could make Nigeria an exporter of goods and services to tackle high foreign exchange rate.

Reiterating their warnings, they said that it would be a mirage to try to stabilise the foreign exchange rate
without first creating conducive business environment, like addressing epileptic electricity supply, multiple taxation etc, which could make Nigeria an exporting country than import-reliance country.

MAN PRESIDENT

On his own part, MAN President, Otunba Francis Meshioye at the Official Presentation of MAN CEO’s Confidence Index (MCCI) advocated for synergy among all sectors, especially the Monetary Policy Committee (MPC) in confronting the economic challenges facing the country, notably the fluctuations in inflation and exchange rates.

“While MAN understands the reason behind the MPC’s decision, it is crucial for the committee to thoroughly assess the potential impact on the real sector and the multiplier effect on the nation.

“Collaborating with fiscal authorities is essential to reinforce the sector’s traditional role in driving significant employment, heightened productivity, steady forex earnings, and sustained economic progress.

“It is notable that the strategy of raising the Monetary Policy Rate (MPR) has persisted for nearly two years without yielding positive results.”

Still expressing his concern, Meshioye said, “Therefore, MAN advocates for robust collaboration between monetary and fiscal authorities and suggests considering the following policy measures:

Implement targeted interventions aimed at mitigating the underlying cost-push factors driving inflation, thereby alleviating the financial burden on manufacturers.

Prioritise forex and credit allocation to the manufacturers and fast track the proposed recapitalization of the banking sector.

Emphasize the development of infrastructure within industrial hubs and bolster nationwide investments in renewable energy sources to alleviate logistical expenses and enhance competitiveness.

Further reduce the reliance of the country on imported products and raw materials by providing incentives for investment in backward integration and local sourcing to reduce the pressure on the dollar to the barest minimum.

ASSBIFI helmsman

Another respondent, the President of Senior Staff of Banks and Insurance and Financial Institutions (ASSBIFI) Comrade Olusoji Olusola, noted with displeasure the one year reign of PBAT in office.

In his first day in office, the regime of President Bola Ahmed Tinubu (PBAT) began on hope-dimming way for most Nigerians by announcement of fuel subsidy removal in his inaugural address to the nation.

According to Olusoji, the banking and financial sector has not enjoyed expected turnaround restoration as most people are still buying Naira with Naira due to dearth of flow of the Naira.

“Unexpectedly for many, the government started on a rather shaky note and so far there have been too many trials and errors that have negatively impacted on the common Nigerian.

‘These have sadly overshadowed whatever positive intentions or steps taken by the government. For the financial industry, the government needs to collaborate with organizations in the sector in ways to jointly revive the failing economy while encouraging a reduction in the number of unbanked people.

“This is not the time to look for, or develop means of over taxing or extorting levies which will invariably be borne by the public.

The ASSBIFI  boss suggested that government should also apply stiff fiscal discipline by avoiding spendings that have no value to growth and apply such funds to areas that will stimulate industrial growth.

NUFBTE helmsman

Likewise, the President of National Union of Food, Beverages and Tobacco Employees (NUFBTE), Comrade Garba Ibrahim, lamented that most companies now convert Nigeria into dumping ground for their finished products.

Addionally he said, that more factories may still shut down unless urgent step is taken to keep them afloat.

“Many factories/shops closed down and relocate to neighbouring countries producing and bringing the products back to Nigeria and sells because they don’t have any market than Nigeria.

“Multiple taxation, unfriendly policies by federal government that has to do with electricity tariff increases, Fuel subsidy removal all associated with the transition of most industries to neighbouring countries.

“Government lost revenue and jobs were lost that is the quancequancies.

Companies that have relocated or decided to drop the intention of expanding their plants and shift include guiness, UAC foods and the rest.”

FIWON helmsman

In the same vein, the General Secretary of Federation of Informal Workers of Nigeria (FIWON) Comrade Gbenga Komolafe lamentedly said the past one year in office by President Bola Ahmed Tinubu has been characterised with uncertainty based on many wrong steps he has taken so far.

According to Komolafe, “We are all aware of the fact that the overall macro economy has been on a meltdown since PBAT came on board last year.

“The hyper inflationary effect of the removal of so-called subsidy on fuel prices as well as well as exchange rates liberalization resulted in stratospheric increases in the prices of most basic goods and services. This, in turn, means that prices also skyrocketed overnight even in the midst of consumer incapacity to purchase anything as real incomes dwindled.

“According to the Manufacturers Association of Nigeria (MAN), over 770 manufacturing plants closed down in the period between July 2023 and February 2024, discharging hundreds of thousands of workers into the already over saturated labour market.

Needless to say, small-scale enterprises have borne the brunt the terrible situation as it becomes increasingly difficult to restock in the face of soaring prices. It is not a surprise, therefore, that the food and Confectionery sector has fared very badly even as many outlets closed chop.

Moreover he expressed displeasure over ejection of traders without provision of better alternative, saying,
“Government policies in terms of mass demolition of homes and informal work places has also aggravated a terrible situation. It.is becoming fashionable for a lot of state government, especially LASG, to evict working people from their homes and workplaces on a daily basis. Given the desperate state of the economy, it is absolutely unconscionable that state governments are pulverizing already economically brutalized citizens with mass evictions.”

Another stakeholder, who simply identified himself as Ignatius, on his own of PBAT’s one year in office blamed him for lack of capacity, noting that government policy summersaults have chased away the most companies from the country.

“Microsoft left Nigeria after Bill Gates meeting with Tinubu, and moves a $1billion dollars investment to Kenya.

TotalEnergies moves a $6billion Dollar Investment to Angola, some are still preparing to leave due to unfriendly business environment.

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