The Nigeria Labour Congress (NLC) has berated President Bola Tinubu over the economic hardship in the country, which it claimed was worsening and pushing Nigerians into misery.
The President of the NLC, Joe Ajaero, who faulted Tinubu’s economic reforms at the 21st Daily Trust Dialogue in Abuja, warned the President against heeding the advice of the World Bank as well as the International Monetary Fund (IMF).
However, the Minister of Information and National Orientation, Mohammed Idris, who was at the event, disagreed with Ajaero’s criticism.
He assured Nigerians that they would soon start enjoying the benefits of the reforms of the President.
Africa Today News, New York reports that following Tinubu’s removal of the fuel subsidy on his assumption of office on May 29, 2023, prices of goods and services went up.
He justified the decision by saying the government could not continue to subsidise fuel with billions of naira which he promised to invest in infrastructure and other social development programmes.
In protest, the NLC and Trade Union Congress held a street rally over the increasing cost of living due to government policies, especially the removal of the subsidy on petrol.
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To address the forex crisis and boost liquidity, the government through the Central Bank of Nigeria, abolished the multiple exchange rates which collapsed into the Investors and Exporters.
However, the policy change has failed to yield the expected results as the forex crisis, which started under the Muhammadu Buhari administration, worsened with the national currency now exchanging for over N1,400 per dollar.
But on Thursday, the NLC president took a swipe at the policies of the Federal Government, noting that Nigerians were the losers in the economic programmes initiated by the President.
Speaking on the theme, ‘Tinubu’s Economic Reforms: Gainers and Losers,’ Ajaero cautioned the President against implementing IMF policies, noting that listening to the Bretton Woods institutions had never helped Nigeria.
Addressing the audience which included a former Chairman of the Independent National Electoral Commission, Prof Attahiru Jega, Deputy Governor of Katsina State, Faruq Jobe, ex-Presidential spokesman, Garba Shehu, Senator Shehu Sani, and others, he argued that many of Tinubu’s reforms were the policies of the World Bank and the IMF.
He cited the hike in fuel pump prices which he said was a World Bank’s idea.
“Reforms are meant to be accepted by the people and such reforms are supposed to yield results for the people. When it is the other way around, it becomes information. Many of the Tinubu’s reforms are just policies of the World Bank and the IMF,” he said.
The NLC chairman, who was a panellist at the event, said it was not too early to measure the indices of failure and winning.
He stated that the masses were the losers because the price of fuel had become almost unaffordable to Nigerians.
He stated that fuel which hitherto sold at N187 per litre now dispenses for N700 per litre while the salaries remained the same.
“Some of the policies we are talking about today seemed to be emergency policies. I am going to talk about how the policies affect the common man on the street. I am here as a representative of the losers,” stated.
Ajaero lamented the closure of businesses in the country as he lamented that Nigeria is the poverty capital of the world.
Touching on Tinubu’s key economic policies of subsidy removal and naira devaluation, Ajaero stated that it took eight years for the naira to fall from N260 per dollar to N700 per dollar under former President Muhammadu Buhari, but under Tinubu, the national currency fell from N700 per dollar to N1,350 per dollar within six months.
He lamented the increasing debt profile of the country. “Who do you think will pay it?’’ he asked.
“I know they tell you that you have to suffer a bit so you can gain, but it has been the same story since forever,” he said, as he called for a review of all government policies to know what works and what does not, noting that the country’s situation is getting worse.
“I think the Tinubu’s administration should look at all these things holistically so we have a good master plan to drive Nigeria, we need policies to keep people in their jobs and not the other way around. The situation will continue to worsen until there is a policy reversal,” he concluded.
He submitted that the steps taken so far to cushion the effect of the fuel subsidy removal have not been felt by the people.
Instead of helping Nigerians, the labour leader insisted that Tinubu’s policies have deformed the workers.
He noted, “Unfortunately, we do not see courage in actions that pillage the people, rather, we see cowardice in bowing to the pressures of foreign interests (IMF and World Bank) against that of your own people. That is not what reforms look like but it is exactly what the path to deforming a people and a nation looks like.’’
Reprimanding the President who has been accused of running a large and ostentatious government, the NLC leader asked him to reduce the cost of governance, noting that any reform that did not address this cardinal issue is deceptive.
Any reform that does not deliberately reduce the cost of governance in Nigeria by at least 50 per cent is deceptive,’’ he pointed out.
Speaking further, he stated, “You therefore ask yourself, how did we come to this sorry pass? Why have they refused to allow the refineries to work? Who are those sabotaging the refineries and thus our economy? Why is it difficult for the government to repair or refurbish its own refineries?’
“One of the controversial measures undertaken by the Tinubu administration was the hike in the price of petrol in the guise of the elimination of subsidy on Premium Motor Spirit.
“The purported aim was to reduce government spending and redirect resources to other critical sectors. What are the immediate and long-term effects of these measures on the economy, inflation rates, and the cost of living.’’
“The truth is that when you find out those who are benefitting from the shutdown of our refineries, they are the ones benefiting from the grievous distortions in the downstream sector of the oil and gas industry in Nigeria,” he added.
He listed inflationary pressures, transportation costs, and cost of living as some of the effects being felt by Nigerians, referencing the rise in the prices of essential goods and services precipitated by increased transportation costs.
“Many businesses have been shut down and many more are planning to leave as a result of the increasing hostile operating environment for businesses in Nigeria.
“The palliative economy or the feeding bottle economy which runs on the creation of hardship then giving of a little token to cushion its effect has created a league of treasury looters and they are smiling to the bank.
“The various scandals as witnessed during the last government where billions of dollars were frittered away in the name of humanitarian affairs have worsened; the huge sums in private accounts and the flights from Abuja to Lokoja are still with us,’’ Ajaero stated.
Coming short of writing off the reforms of the present administration, the NLC boss noted that as long as the majority of Nigerians are living in poverty, there is nothing to cheer about.
Ajaero also chided the Federal Government’s move to sell off public assets, saying, “They are talking about privatisation; 99 per cent of privatised companies have disappeared. And we are sustaining it. You sold your house for N2m and you gave the buyers N10m to repair it. That is a prodigal economy.’’
Citing the situation in the power sector, he added, ‘’All the Discos have been taken over by banks. The banks are running the power sector and you want it to work? I think the Tinubu government should look at all this holistically.’’
Responding to Ajaero’s criticisms, the Minister of Information and National Orientation, Idris, assured Nigerians that the vision of President Tinubu was to provide succour to Nigerians, revamp the economy, and return the country to prosperity.
He asked for more time for policies to bear fruits.
He said the N35,000 wage award being implemented by the Federal Government would be paid to workers.