By Milcah Tanimu
The Nigeria Labour Congress (NLC), Trade Union Congress of Nigeria (TUC), and the Nigeria Employers’ Consultative Association (NECA) have expressed serious concerns over the continuous depreciation of the Nigerian naira. They are calling on the Federal Government to take immediate and effective measures to stabilize the national currency.
The NLC, in particular, has warned that if swift and tangible interventions are not put in place, it might take appropriate steps to compel relevant authorities to prioritize the rescue of the naira and, by extension, the national economy. This is in response to the alarming depreciation of the Nigerian naira against major world currencies, particularly the United States Dollar. The NLC emphasizes that Nigeria’s heavy reliance on imports makes the country particularly vulnerable to the negative effects of a weakened currency. This could lead to an increase in inflation rates, which would impact workers and the general population significantly.
The NLC also criticizes the actions of some public officials, who have shown a preference for imported products over locally manufactured goods. This preference for foreign-made goods contributes to the high coefficient of imports and negatively affects the value of the naira. The NLC calls on public officials to prioritize and patronize locally manufactured goods to boost the local economy.
The Deputy President of the TUC, Dr. Tommy Okon, blames international organizations like the International Monetary Fund (IMF) and the World Bank for manipulating Nigeria’s leaders to pursue policies that weaken the nation’s economy. He points out that lifting the ban on certain items that were restricted from accessing foreign exchange to boost liquidity in the foreign exchange market has negatively affected local industries. This has led to a surge in inflation, which disproportionately impacts workers with fixed salaries.
NECA, representing businesses in Nigeria, is also concerned about the free fall of the naira, which directly affects the cost of doing business. The continuous depreciation of the naira means higher costs for organizations that rely on foreign materials and machinery, which are purchased using dollars.
The analysts and experts suggest that government intervention may not be the solution. The foreign exchange market is now deregulated, and supply and demand determine the value of the naira. Instead, they recommend that businesses should become less import-dependent and focus on increasing their capacity to earn in hard currency. Market mechanisms should be allowed to allocate forex, reducing volatility over time.
In summary, the NLC, TUC, and NECA are urging the Nigerian government to address the depreciating value of the naira, as this trend negatively impacts workers, businesses, and the overall economy. They recommend a shift toward supporting locally manufactured goods and believe that market mechanisms should be allowed to allocate forex to stabilize the currency.
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