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Workers in the chemical sector have cautioned the Federal Government that Nigeria may not be able to optimise the manufacturing sector as a driving force in economid recovery, with the current high interest rate.
The workers, under the umbrella of the Chemical and Non-Metallic Senior Staff Association of Nigeria (CANMPSSAN), said that high interest rate was one of the many challenges bedevilling the manufacturing sector and hindering it from playing its vital role in the nation’s economy.
National president of CANMPSSAN, Dr. Abdul Gafar Mohammed, in his address at the union’s 22nd Annual National Management/Industrial Relations workshop in Abeokuta, Ogun State, observed with disapproval that the Central Bank of Nigeria (CBN) has continued to peg the interest rate at 14 per cent.
“It might interest you to know that low interest rate allows businesses to diversify and create more job opportunities. So government should look into this, if they really want manufacturing to be the driving force of economic growth in the country”, he said.
Noting that the challenges confronting the chemical sector range were caused by external and internal factors, he stated that the onus was on government to make policies that would ensure the quick recovery of Nigeria’s economy.
Mihammed said, “The external challenges include the unfavourable government policies, high cost of dollar to naira, high cost of energy as a result of increase in exchange rate of dollar to naira, high cost of energy as a result of failed electricity generation and high interest rate by CBN pegged at 14 per cent.”
The labour leader, who said the theme of this year’s seminar, “An Overview of Nigeria’s Economy and its Implications on Industrial Relations in a Depressed Economy,” was chosen to x-ray the problem and provide ways out. He maintained that it would be better if government could provide an environment that was conducive for the employers to get loans from bank at a low rate.
He also advised government to cut down domestic debt to stimulate lending for public and private sector investment to boost economic growth.
Mohammed stressed that the workers henceforth want to feel the impact of economic recovery in the chemical sector.
“We want the exchange rate to be reduced and accessible to acquire raw materials, encourage investments and create a conducive environment for industrial sustainability,” he said.
According to him, “internal factors are those familiar with us, they range from the issues of gratuity, downsizing, victimisation, outsourcing, contract staffing and other anti-labour activities. The effects of these are seen every day in our various places of engagement.”
He charged employers in the private and public sectors to see trade unions as groups whose interest is more of economic, adding that this would determine its culture and political interest.
Mohammed said, while it is important for employers to make profit, they should not forget that productivity of the workers depends in job satisfaction and good remuneration’
