Ahead of their meeting today with the federal government, the Nigeria Labour Congress (NLC) are demanding urgent stabilisation of the naira, warning of “a wave of devastating consequences” for the economy if the currency’s free fall continues.
In a statement, NLC President Joe Ajaero blamed the naira’s depreciation on “the penchant of public officials for foreign goods.” He urged the government to take immediate and decisive action to halt the uncontrolled depreciation of the naira, including:
Deliberately “protecting” the naira by purchasing locally manufactured goods such as public vehicles for government officials.
Urging public officials to remain patriotic and refrain from purchasing foreign products.
Implementing effective measures to safeguard the naira, stabilize the economy, and secure the nation’s future.
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Ajaero also warned that the NLC may be forced to take action if the government fails to address the crisis.
The NLC’s demand comes as the naira depreciates against the US dollar, trading over N1,000/US$ in the parallel market.
The naira’s depreciation has been attributed to an increasing forex demand that does not equate to supply from the Central Bank of Nigeria. This decline has further led to manufacturers struggling to get raw materials, with more companies planning to sack more workers or shut down.
The NLC’s statement is likely to put further pressure on the government to take action to address the naira crisis. The government has already announced measures, such as increasing forex supply and cracking down on illegal forex trading.
However, it remains to be seen whether these measures will be enough to stabilize the naira.