NLC Criticizes Borrowing Foreign Currency to Support Naira Devaluation, Calls for Policy Re-evaluation

By Milcah Tanimu

The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have raised concerns over the federal government’s decision to borrow foreign currency to support the devaluation of the Naira, labeling it a shortsighted approach that could exacerbate the country’s economic challenges.

Speaking at the May Day festivities in Abuja, NLC President Joe Ajaero argued that the dominance of international financial institutions like the IMF and World Bank in shaping policies undermines national interests and perpetuates dependency. He lamented the negative impact of government policies on businesses, leading to closures and significant losses.

Ajaero criticized the widening gap between the elite and the masses, citing petrol price hikes and Naira devaluation as policies that enrich a few while impoverishing the majority. He called for an end to disastrous policies like excessive borrowing and corruption, emphasizing the need for transparency in governance and accountability for public funds.

The labour movement demanded bold leadership to prioritize the welfare of Nigerians and support local industries. Ajaero urged President Tinubu to lead the nation towards recovery by putting the interests of citizens first.

Addressing the energy crisis, the NLC and TUC warned against the uninspiring management of energy resources, highlighting its detrimental effects on the economy and citizens. They stressed the importance of collaboration between the government and the people to ensure equitable distribution of energy benefits.

On the fuel crisis, TUC President Festus Osifo demanded prompt action on refineries and transparency in refinery agreements. He raised concerns over subsidy expenditures and called for clarity on consumption patterns and beneficiaries.

The labour unions rejected unilateral tariff hikes in the power sector and advocated for adherence to due process. They emphasized the need to reassess privatization and reclaim control to improve electricity generation and distribution.

In conclusion, the NLC and TUC called for unity to ensure energy serves all Nigerians and drives the nation’s prosperity. They advised regulatory bodies and power sector operators to reverse recent electricity tariff increases within one week to alleviate the burden on consumers.