Will NLC strike end cash crunch?

Barring any last minute change of mind, the national leadership of the Nigeria Labour Congress (NLC) has threatened to embark on a strike if the cash crunch, fuel scarcity and electricity tariff increase are not addressed.

Rising from a meeting, the apex labour union said it was determined to address the lingering crisis being precipitated by the actions and inactions of the Central Bank of Nigeria (CBN).

In a communiqué by NLC at the end of its Central Working Committee (CWC) meeting in Abuja, the congress said the challenges were among the issues that raised the most concerns.

In the communiqué, the National President of the congress, Comrade Joe Ajaero and General Secretary, Emma Ugboaja, charged the Federal Government to take action to cushion the hardship of the cash

In the communiqué, the National President of the congress, Comrade Joe Ajaero and General Secretary, Emma Ugboaja, charged the Federal Government to take action to cushion the hardship of the cash crunch, fuel scarcity and high cost of electricity tariff on Nigerians.

Expectedly, the NLC had resolved to embark on a nationwide strike Wednesday next week over the lingering scarcity of cash across the country. The Congress also planned to storm the Central Bank of Nigeria to protest the devastating development.

In the communiqué, the National President of the congress, Comrade Joe Ajaero and General Secretary, Emma Ugboaja, charged the Federal Government to take action to cushion the hardship of the cash

“CWC said poor implementation of the Naira redesign policy has caused considerable pain and hardship to the people.

“Similarly, the CWC-in-session, after reviewing the fuel supply situation and the attendant arbitrary costs at filling stations, expressed dismay at the nonchalance of NNPCl and government. It, accordingly, resolved to ask the NNPC/FGN to normalise the fuel supply situation.

“The CWC expressed its outrage at the surreptitious increase in electricity tariff without notice and without improvement in quality of service. CWC resolved that, henceforth, any surreptitious increase would be met with appropriate response,” the communiqué stated.

The NLC berated the Abia and Imo state governments on the payment of workers’ salaries/allowances and pension.

“There were national protest actions in Abia and Imo States over non-payment of salaries/allowances and pensions for several months, non-remittance of check-off dues and other anti-union activities. Reviewing the performance of the actions, it was noted that the Abia State government has signed an agreement with Congress pending full implementation of the agreement.

“In Imo, however, the action is ongoing as more unions are poised to fold in as the issues are multi-sectoral and include the following: refusal to implement previous agreements reached between the state government and trade unions since 2021; 20 months’ salary arrears owed to some workers stigmatised as ghost workers and declaration of 11,000 workers in the state as ghost workers and diversion of their salaries even when they were regularly at work.

“Others are vandalism of Congress office and equipment by hoodlums; implementation of discriminatory pay and institutionalisation of apartheid in monthly payments; refusal to pay eight years arrears of gratuities owed retirees; non-appropriate implementation of the national minimum wage law; harassment, intimidation and brutalisation of trade union leaders in the state; intimidation of workers in the state and continuous disregard for Collective Bargaining and Social Dialogue,” the labour union said.

Ajaero, after his election, pledged that NLC would not pay lip service to electricity tariff increase and fuel subsidy removal.

NECA weighs in on NLC

Apparently fearing the unpalatable outcomes of the planned strike, the Nigeria Employers Consultative Association (NECA) has advised the organised labour to shelve its planned strike against the prevailing naira scarcity to avoid plunging the country’s economy into further chaos.

The Director General of NECA, Mr. Adewale-Smatt Oyerinde, who gave the advice at a press conference, said any industrial action at the moment would be counter-productive.

The national leadership of NLC had resolved to embark on a nationwide strike Wednesday next week over the lingering scarcity of cash across the country.

The Congress also planned to storm the CBN offices nationwide to protest the devastating development.

However, it had been reported that some officials of the apex bank, including its deputy governors, had met with the leadership of the congress in Abuja, to resolve the issue.

While slamming the apex bank on its poorly implemented naira redesign policy and its implications for businesses and others, Oyerinde cautioned any strike this time won’t be helpful to the country.

Oyerinde said: “While we had expressed our deep concern as regards the mismanaged and dreadful implementation of the naira redesign policy, and in fact, some other policies of the Central Bank of Nigeria, it is our strong believe that the planned strike by the NLC could further drag the economy into a deeper hole, leading to rapid business closures, job losses and other socio-economic challenges.

“While we affirm emphatically our displeasure with the government’s loud silence and seeming inactivity in resolving the self-inflicted quagmire, the planned strike, at this time, could be counter-productive.

“We, hereby, urge the maximum use of the instrumentality of social dialogue in resolving all issues associated with industrial and social-economic disputes.

“Actions by the government and indeed social partners that could compromise the fragile economic state of the nation should be avoided. We urge the CBN and indeed, the federal government to immediately address the genuine concern of Nigerians in view of the ongoing socio-economic difficulties.”

Like NECA, the Director-General of the Michael Imoudu National Institute of Labour Studies (MINILS), Ilorin, Kwara State, Mr Issa Aremu, has advised the CBN to engage the NLC in a social dialogue to avert the planned strike over the continued cash scarcity.

Aremu who made the call last Thursday in Ilorin on the sidelines of the Interfaith Prayer organised to mark the 40th anniversary of the institute.

The directive, according to the trade unionist, became imperative following the expiration of a one-week ultimatum given to the apex bank to make cash available for Nigerians.

Speaking on the development, the MINILS head said it was unprecedented that the labour union is threatening to picket the CBN, asking the apex bank to use every means at its disposal to ensure monetary stability in the country.

The erstwhile labour leader further noted that depositors had been subjected to a lot of hardship in recent times over the CBN financial policy.

Mr Aremu said that CBN must be more transparent and engaging and look at the overall policy’s impact on the growth and development of the nation’s economy.

He said that this would ensure the confidence of Nigerians in the banking system.

Mr Aremu explained that such a cashless policy should be gradually introduced after the appropriate infrastructure had been put in place.

“It also requires mass sensitisation and awareness, and there is a limited time for implementation of the policy for Nigerians,” he said.

However, the institute’s head lauded the CBN’s Anchor Borrowers Programme, saying it “provides loans (in kind and cash) to smallholder farmers, which have boosted agricultural production, especially rice”.

He, therefore, insisted that picketing of the apex bank by labour leaders was avoidable and preventable, advising CBN to address all concerns by organised labour.

On the 40th anniversary of the institute, Mr Aremu said, “This gathering is all about appreciation to Almighty God in the Holy Month of Ramadan, in which Catholic lent, also runs. Both Christianity and Islam stress gratitude. Gratitude pleases Allah, while ingratitude displeases Him.”

“Glory to Almighty for sparing our lives to continue the institutional building that started with President Shehu Shagari’s formal inauguration in 1983,” he said.

Dr. Okwara Udensi , the Chairman of the Manufacturers Association of Nigeria (MAN) Edo\Delta chapter, has also expressed worry over the planned strike by the labour union, saying that it has the potential to further wreck the economy.

According to him, he would rather the warring parties seek the option of a roundtable in order to arrive at an amicable resolution of the impasse.

The fear of NLC… beginning of wisdom

Not wanting to take any chances at all, the CBN directed all commercial banks to open for operation on Saturdays and Sundays, as part of a coordinated effort to ease circulation of banknotes of various denominations.

The apex bank also confirmed the evacuation of banknotes from its vaults to commercial banks across the country.

This latest development was disclosed in a statement signed by CBN Acting Director, Corporate Communications Department, Isa AbdulMumin, in Abuja, on Friday afternoon.

The statement noted that a substantial amount of money, in various denominations, had been received by commercial banks, for onward circulation to their respective customers, even as it prevailed on banks, to conduct physical operations in banking halls through the weekends.

Excerpts of the statement read: “The CBN has directed all banks to load their Automated Teller Machines, as well as conduct physical operations in the banking halls through the weekends.

“Branches of commercial banks will operate on Saturdays and Sundays to attend to customers’ cash needs.

“The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, would personally lead teams to monitor the level of compliance by the banks in various locations across the country,” it stressed.

The bank, therefore, urged Nigerians to be patient, as the current situation would ease soon, with the injection of more banknotes into circulation.

The Central Bank of Nigeria on Thursday began the disbursement of old naira notes to Deposit Money Banks as government authorities stepped up efforts to end the biting currency scarcity that has inflicted pain on millions of bank customers nationwide.

The central bank had directed DMBs to pick old N1,000, N500 and N200 notes at its offices across the country for onward disbursements to customers, following a meeting between the CBN Governor, Godwin Emefiele, and bank chief executive officers on Wednesday.

Findings by our correspondents on Thursday revealed that commercial banks got old naira notes from CBN offices across the country.

Multiple bank sources including CEOs and top executives confirmed to The PUNCH that the apex bank released old notes to banks.

“I can confirm to you that we received old notes from the CBN today, we also received a memo from the central bank to this effect,” the CEO of a commercial bank told The PUNCH on condition of anonymity.

Also, a general manager at a tier-2 bank told one of our correspondents that the lender got some old notes from the central bank on Thursday.

“The CBN has started giving us old notes. However, it will take some time for the currency to circulate,” a top official of a mid-size bank confirmed to one of our correspondents on Thursday.

However, top bank officials said it would take about two weeks for the situation to normalize, adding that bank queues might not disappear until later next week.

They also hope to pay N500,000 per customer by next week.

“The situation will not normalise immediately. The impact will begin to be felt on Friday. Overall, things should normalise between one and two weeks,” a top bank executive told The PUNCH because he was not authorised to speak on the matter.

The National President, Association of Senior Staff of Banks, Insurance and Financial Institutions, Mr Olusoji Oluwole, said, “Until recently, the volume of the old currency released to banks has been minimal. This coupled with panic withdrawal by customers, and the restriction of daily withdrawal limits by the CBN has caused continued rationing. However, with the announcement yesterday by the CBN to pump more cash into the system, we hope the pressure will ease by next week if the CBN keeps to this promise.”

But the CBN has reportedly concluded plans to dispatch a team of officials to monitor compliance on the part of banks.

It was gathered that the apex bank officials would monitor banks in Lagos, Abuja and other cities with a view to enforcing proper disbursement of the old notes collected from the CBN.

Top officials of the bank were said to have been directed to ensure the speedy recirculation of the old naira notes, hence the monitoring exercise.

Also speaking with a cross section of some banks’ customers at Lagos metropolis and environs at the weekend they confirmed to our correspondent that majority of the deposit money banks were now paying cash, compared to experience of the past few weeks when there was acute cash scarcity both in the banking halls and most of the ATM galleries.

A food vendor, who simply gave her name as Lami, said when she visited the banks on Friday she got more than enough with assurances that she could come on Saturday and Sunday if she was cash strapped.

Investigation by The Nation revealed that the apex bank has since stepped up efforts to end the biting currency scarcity that has inflicted pain on millions of bank customers nationwide, after a Supreme Court ruling, and a proposed protest by NLC, scheduled for this week.