The National Union of Chemical, Footwear, Rubber, Leather and Non-Metallic Products Employees (NUCFRLANMPE) has raised concern about Nigeria’s current economic direction. Speaking at the 32nd Annual Industrial Relations Seminar in Ilorin, Kwara State, the union’s president, Goke Olatunji, underscored the urgent need to capitalise on minerals by adding value to natural resources before exporting them. Even with enough Mineral resources, the country has struggled for years with the bad practice of exporting raw materials without adding value. Olatunji expressed regret over the considerable financial losses that have prevented the country from maximising its foreign exchange earnings.
It was emphasised that the nation must shift from simply exporting raw materials to establishing vital industries capable of Manufacturing these resources. This shift will result in job creation, higher exports, and economic progress. Olatunji noted the importance of maintaining a healthy Trade balance, emphasising how the discrepancy between imports and exports can impact economic well-being. Nigeria is currently experiencing a situation where imports are more than exports, leading to economic effects such as currency devaluation, escalating inflation, increased job losses, food insecurity, and poverty.
Effective import strategies will improve and support local manufacturing.
He cautioned that these problems could lead to civil unrest, pointing to the recent End Bad Governance demonstrations as evidence of underlying economic frustrations. In order to tackle these difficulties, Olatunji emphasised the need to implement effective import strategies to support domestic manufacturing. He stressed the importance of prioritising these strategies in conversations surrounding the nation’s economic prospects. He emphasised the role of manufacturing in driving Economic Development and improving citizens’ living standards. He also acknowledged the challenging economic environment, especially for manufacturing companies.
Manufacturers face many limitations, such as high production expenses due to increased interest rates, expensive electricity, and rising prices of Petroleum products necessary for generating power. In addition, the industry is hindered by inadequate infrastructure, specifically bad road conditions, and a growing Tax burden weighing down manufacturers. Olatunji emphasised the importance of manufacturing in driving sustainable Economic Growth and development, noting that the sector needs assistance to thrive. The industrial sector is experiencing challenges due to the economic decline, which is taking a heavy toll on workers.
Unstable exchange rates continue to reduce the naira’s purchasing power.
Olatunji further noted that job cuts from redundancies, factory shutdowns, and relocations are now common occurrences for many employees. Workers in these industries frequently encounter unstable working environments marked by low salaries, the absence of incentives, and limited inspiration. Rising Inflation and fluctuating exchange rates continue to reduce the naira’s purchasing power, increasing challenges for the average worker in daily life. Meanwhile, reflecting on the recently signed Minimum Wage of ₦70,000, he expressed concern that its dollar equivalent is now lower than it was at ₦18,000.
Therefore, he acknowledged the efforts of employers in the sector who agreed to a minimum wage of ₦87,000 in 2023, but he also called for a shift in focus from minimum to a living wage, one that can support workers and their families in the face of rising costs. The union’s primary goal is to provide its members with a comprehensive understanding of the national economy, enabling them to participate in constructive conversations with their employers. Olatunji stated that a better understanding of economic matters will improve relations within the chemical industry, encouraging dialogue that promotes unity and efficiency in the workplace.
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At the conference, Femi Oke, the Executive Secretary of the Chemical and Non-Metallic Products Employers’ Federation (CANMPEF), stressed the significance of human resources in today’s business landscape. He underscored that even with technological advancements, human resources are still the most flexible and crucial assets in any company, able to make critical decisions that set them apart from competitors. As economic challenges continue to affect the country, workers’ voices are crucial in shaping the policies and strategies determining the nation’s economic future.