Key highlights
- The manufacturers want the federal government to dialogue with the Labour Union.
- They said a strike action at this time will worsen the current sufferings of Nigerians.
- They also queried the CBN’s tardy response to releasing the old notes to banks weeks after a Supreme Court ruling on the old notes.
The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to dialogue with the NLC on its planned strike action and picketing of Central Bank of Nigeria (CBN) offices nationwide over the lingering cash scarcity.
The Chairman of MAN Edo/Delta, Dr Okwara Udensi, who made the call on Friday said embarking on strike was not the best option as it would compound the present sufferings of Nigerians.
Strike is not an option
While noting that Nigerians are already suffering as a result of the naira scarcity, he said:
- “For us as manufacturers, a strike is not the best option, dialogue is the best thing so that we will not suffer more. Embarking on industrial action will ground our businesses, and road transport workers might join the strike and this will cripple our activities.
- “But unfortunately, it seems strike is the language the government understands. I read on the news that the CBN says it will mop up the old N500 and N1,000 notes to commercial banks.
- “Must people tell them they want to go on strike before they mop up cash to banks?”
He lamented that the manufacturing sector had continued to witness the high cost of production, a situation that was not good for economic development.
- “We now buy diesel for between N820 and N830 per litre, how many litres of diesel will you buy to run your generator to produce? “Raw materials we used to pay between N350,000 and N400,000 to convey from Jos to Benin City in 2022 is now about N800,000 as of today.
- “Business is no longer lucrative, profit margin has been swallowed by the high cost of production. “Customers are not ready to buy at higher prices, manufacturers are just selling to stay afloat,’’ he said.
The back story
The President of the Nigeria Labour Congress (NLC), Joe Ajaero on Wednesday directed workers to embark on strike over the lingering cash crunch and fuel scarcity.
Ajaero also directed that affiliate unions constituting the NLC should be on standby to picket all branches of the CBN nationwide during the strike which is expected to begin on Wednesday, March 29.
Since the redesign of the N1,000, N500, and N200 notes by the CBN, Nigerians have been battling with the scarcity of cash. While there had been a back-and-forth on the deadline for the old notes to cease to be legal tender, a Supreme Court ruling on March 3rd ordered that the old notes should remain legal tender until December 31st. However, the cash scarcity has continued as banks are in short supply of even the old notes.
