By Bimbola Oyesola,[email protected]
Amid the ongoing economic challenges facing the nation, including the recent fuel price hike, human resources director of Cadbury Nigeria, Dr. Wole Odubayo, has stated that the Federal Government’s efforts seem not to be making the desired impact yet.
Odubayo stated this at the workshop organized by the Labour Writers Association of Nigeria (LAWAN) with the theme, ‘Challenges of the Nation’s Economic Downturn: Survival Options for Workers’.
The HR expert noted that, “Nigeria’s economy has experienced significant challenges over the past few years”, adding that the downturn is characterised by slow growth, galloping inflation, high energy costs, and a weak currency, among other things.
He stated that several factors, both global and domestic, have contributed to this situation.
“The nation’s heavy reliance on oil exports has made it vulnerable to fluctuations in global oil prices, while domestic issues such as poor governance, weak civil structures and corruption have further aggravated our economic woes. All these factors have brought our economy down to its knees,” he said.
Odubayo reasoned that key statistics and data on the severity of the Nigerian economic downturn have been brought to the fore in the FDC July 2024 report. The report showed that, “headline inflation is increasing at a slower pace towards 34.1 percent, the food inflation basket is now at 40.66 percent, and Nigeria is moving from a debt sustainability path to a debt trap path.”
He added that “episodic downturns in the economy have always been part of our reality. This is not peculiar to Nigeria alone, as other countries, including advanced nations, also have their fair share of economic challenges.”
He however said it is the approach to addressing these challenges that determines the recovery period.
The Human Resource practitioner said the current administration has tried to engage the private sector to explore the best strategies for rebooting the economy, as it earlier this year, set up a Presidential Economic Coordination Council comprising top government functionaries and eminent players from the private sector.
According to Odubayo, this may indicate that government is committed to growing the economy, but he said “these measures seem not to have made the desired impact yet.”
He expressed that the Manufacturers Association of Nigeria (MAN), recently lamented that most of its members currently operate at about 40 percent of their capacity due to the astronomical increase of 250 percent in electricity tariff for industrial consumers.
He stated further that Nigeria has witnessed the exit of some foreign multinational companies in the country that could no longer cope with the operating environment, emphasizing that Nigeria’s manufacturing sector is going through a very difficult time.
In order to combat the economic challenges, Odubayo advised Nigerian workers to acquire new skills and further their education, emphasizing the importance of workers transitioning from being consumers to becoming producers.
For employers, he recommended offering enhanced benefits and prioritizing employee well-being, suggesting engaging financial experts to assist employees and implementing flexible work arrangements in light of the current hybrid work model.
He also stressed the importance of job security, retention strategies, investment in employee training, and open communication within organizations.
Odubayo called on the government to provide incentives for workers, such as tax waivers, and to diversify the economy to ensure future stability.
While acknowledging the importance of economic reforms, the human resources expert reiterated the importance of considering the human impact to prevent the hardships outweighing the benefits.