Sanusi has lost touch with reality – NLC

By Joshua Amaugo October 26, 2015 17:08

Sanusi has lost touch with reality – NLC

The Trade Union Congress of Nigeria, TUC, alongside the Nigeria Labour Congress, NLC, has called on President Muhammadu Buhari to disregard comments from the Emir of Kano, Muhammad Sanusi II calling for the complete removal of fuel subsidy and Naira devaluation, stating that such moves were against the masses.

TUC President, Boboi Kaigama said, Labour would not accept any further devaluation of the Naira or subsidy removal on petroleum products.

    “We see them as his personal views and we want to make it clear to him and anybody who wants to listen to his advice that it is not palatable to Labour.

    “We will never accept any further devaluation of the naira and we will not be part of the removal of oil subsidy.

    “The government should wait for the consequence of listening to this call because by removing oil subsidy, you are further impoverishing Nigerians.

    “We want a situation where those behind the subsidy scam are punished, then put our refineries in place, come back and discuss with organised labour and let us see whether it is feasible.

    “Otherwise, without putting refineries in place and putting palliatives in place to check increase in prices of goods and transportation and you are calling for the removal of oil subsidy, I think you are very naive when it comes to looking at the consequence of the issue of removal of oil subsidy,” he said.

NLC President, Ayuba Wabba also described the call as anti-masses saying it would further impoverish Nigerians adding that such reflected the fact that the former CBN boss has lost touch with reality.

    “We are not in support of that call.

    “There is no doubt that the former CBN Governor is no more connected with the people. This is the language of the capitalists, the marketers and those who want to milk the country dry,” Wabba said.

A renowned economic analyst and columnist, Henry Boyo said “I think we should ask what should be the implications of doing either or both of those recommendations.

    “If you devalue the Naira, there are a numbers of things that will happen.

    “You will find that the cost of production in Nigeria will go up. You will also find that this will have an intimidating effect on the rate of inflation.

    “You will find also that if Nigerian industries remain uncompetitive, they will reduce capacity and lay off workers. That will mean an additional burden on the level of unemployment in the country.

    “You must recognise that the issue of devaluation of the naira is very closely tied to the issue of subsidy.

    “On the other hand, instead of devaluing the naira, you follow a process that will actually make naira exchange rate to appreciate,” Boyo said.

CBN Deputy Governor, Corporate Services, Adebayo Adelabu, in reaction to the call during the weekend said “We all are aware of the official position of the central bank about this, that there would not be devaluation for now.

    “Like I mentioned earlier, we have made our official position known about naira devaluation to the public, there could be comments from different people, but we have stated our official position on that.”