DON’T LISTEN TO SANUSI, REWANE, TUC WARNS FG

October 28, 2015 – Trade Union Congress(TUC) has called on the Federal Government not to consider advice from some Nigerians who are calling for devaluation of the Naira and removal of oil subsidy.

The TUC made the call against recent call by the Emir of Kano and former Governor of Central Bank of Nigeria (CBN), His Royal Highness, Mallam Muhammadu Sanusi II, and some other notable economists, including the Chief Executive Officer, Financial Derivatives Company Limited, Mr. Bismark Rewane, and a professor of Economics at the Ekiti State University, Abel Awe, canvassing that the Naira be devalued.

But in a statement, President and Secretary of the union, Comrades Bobboi Kaigama and Musa Lawal said the union considers it unfortunate, adding that these “experts” evidently failed to consider the worsening situation of critical growth and development areas which have exacerbated the poverty level in the country.

“The Congress feels particularly pained that while the impoverished masses of the country are still grappling with myriad of daunting challenges ranging from high cost of living, the current dollar/pound sterling rates, outrageous electricity bills, and high rate of unemployment caused by unfriendly policies of successive governments, a privileged few are supporting and proposing Naira devaluation”, the union said.

The TUC also lashed out at those advocating for removal of fuel subsidy despite the fact that the government is yet to meet the necessary palliative pre-conditions.

“No doubt the value of the Naira has already been drastically rubbished. The current bizarre rate of about N197 to a dollar has essentially eroded wage income of millions of workers, increased the cost of domestic production, fueled inflation and undermined the ability of local industries to survive.

“No one needs a crystal ball to know that further devaluation in a non-exporting, import-dependent economy like ours would take away more jobs and sound the death knell on the economy”, it noted.
The union explained that over the years the labour movement has severally called for diversification of the economy and strict monitoring of the nation’s borders which have continued to allow for influx of goods that have local substitutes.

“We decried the reliance on oil even while the price of crude oil was above $100 per barrel, but our calls fell on deaf ears. Nigeria thus lost the opportunity to diversify between 2009 and 2014 when the exchange rate was relatively stable and oil prices as high as $110. Our leaders simply did not demonstrate the requisite sense of responsibility.

“It is a good thing that the present government seems set to address the issues squarely. If this be the case, agriculture and industrialisation are two areas they must not pay lip service to. We have lots of solid mineral resources which, if properly harnessed and developed, would place the country in the comity of industrialised and progressive nations. Deriving from this, the government must encourage Nigerians to patronise local products in order to stimulate local industry”, the union said.

It called on leadership at all levels to endeavour to think out of the box.
“ Thankfully the neo-liberal policy of devaluation which has never done the country and the rest of Africa any good has expectedly been rejected by the Central Bank of Nigeria (CBN). What we need now is a new paradigm of laudable policies instead of embracing policies that further impoverish the people.

“We must jettison the ill-advised proposed increase in electricity tariff, re-industrialize, stop the criminal wholesale smuggling and dumping of inferior goods, significantly lower the credit interest rate, ensure long term development financing, de-subsidise the political/ruling class, fix the refineries, put restrictions and outright ban on importation of textiles and other goods that we have comparative advantages on, provide functional rail transport, create more decent jobs and put an end to insurgency and other security challenges. The growth and development we seek can come without killing the naira and without preying on the poor masses”, the TUC said.