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Employers in the chemical sector have decried the multifarious challenges in the country, stating that they are fostering social unrest and suffocating industrial and business activities in the country.
The employers, under the umbrella of the Chemical and Non-Metallic Products Employers Federation (CANMPEF), lamented that, daily, Nigerians are bombarded with reports on banditry, energy scarcity and consumable price hike, kidnapping, ASUU strike, COVID-19 pandemic and its many waves, outbreak of other infectious diseases, free fall of the naira, election 2023, and others.
Executive secretary of CANMPEF, Femi Oke, speaking at the 30th Industrial Relations Seminar of the National Union of Chemical Footwear Rubber Leather and Non Metallic Products Employees (NUCFRLANMPE) in Ibadan, Oyo State, with the theme “Sustaining Industrial Peace & Harmony in an Era of Socio-economic and Political Instability in Nigeria”, noted that the outbreak of the Ukraine-Russia war further worsened industrial and business activities around the globe.
“There have been disruptive impact on international trade with cost of staple commodities and energy at a historic high-level, straining standard of living across the globe with developing countries hit the hardest.
“This global struggle is further compounded by social and economic stress from COVID-19 pandemic and its lockdown restrictions. In response, some Monetary Policy Authorities – the United States, Australia including Nigeria have resolved to interest rate hikes.”
The CBN in July 2022 raised the Monetary Policy Rate (MPR) from 13% to 14% with a rationale to curb rising inflation.
Also, according to the National Bureau of Statistics (NBS), Nigeria’s inflation rate hit an over 5-year high of 18.6% in June 2022 from 17.7% recorded in the previous month due to the surge in energy prices and transportation cost.
Oke explained that the sustained scarcity of foreign exchange to the productive sectors have worsen the inflation situation as it has resulted in the purchase of limited supply at prohibitive cost.
On the way out, the CANMPEF executive secretary called for a detailed approach that combines the use of fiscal and monetary policies that should provide answers to short and long term measures that should be in place to address the looming recession.
Others, he said, include, “How Nigeria can leverage its available resources to achieve maximum output, commencing with food security and healthcare needs?
“What sectors of the productive economy has shown the most resilience since COVID-19 pandemic outbreak and what can be done to further support its growth?”
He stated how unfortunately farming, a once noble profession, has now become a high-risk venture in some parts of Nigeria due to farmers and herdsmen’s clashes.
He said, “Insecurity of varied fashion and dimensions are prevalent across the country. To say the least, investors have flagged certain regions as off-limit zones. Unfortunately, business places and worship centers are not speared.
With a general election upon us in a few months and the emergence of a new government whose economic policies may not align with the present is not unexpected (policy conflict).”
He opined that both the private and public sector have role to play to sustain peace through promotion of knowledge,
development of Human Capital and
promotion of social cohesion.
On the part of the government, the CANMPEF scribe opined that the need to strengthen administrative machinery to deliver on its obligation to its populace.
According to him, the cost of ASUU strike on the economy transcends both human resources and economic loss. “The number of youth workforce migration to other climes in search for greener pastures is at an all-time. Thus, creating short and long term talent draught that our industries require to reposition itself and compete favourable in the new continental market (AfCFTA),” he said
He added that government should target its economic policies toward scaling up local production and efficiency with impact on quantitative and qualitative improvements, as well as impose strict compliance of Executive Order (003) across its MDAs to stimulate further patronage of made-in-Nigeria goods.
Others include, addressing urgently critical infrastructure needs and give priority attention as well as incentives to local manufacturing of essentials goods and services, commodities and value-added products for export to complement its foreign exchange earnings.
For the industrial sector, Oke advised that the Federation and National Union should collaborate and step up advocacy with the federal and state government to make the business environment easy for manufacturing companies to operate and survive.
