The Nigeria Labour Congress (NLC) has raised a red flag concerning the recent cash shortage gripping the Nigerian economy as the nation approaches the festive season.
In a press release signed by its Chairman, Joe Ajaero, the NLC underscored the significant implications of this economic challenge on citizens and urgently called for measures to address the issue to prevent further hardships.
Ajaero vividly recalled the distress caused by the last cash crunch earlier this year, attributing it to the “ill-conceived and ill-implemented currency redesign policy.” He remarked, “The sorrow that botched exercise foisted on us is not what Nigerians wish to witness again in one year.”
Expressing dissatisfaction, Ajaero highlighted the lack of discernible reasons provided by the Central Bank of Nigeria (CBN) and the government for the recurrence of the cash crunch in 2023. He raised questions about explanations such as an increase in fake notes and Naira hoarding.
“The Nigeria Labour Congress (NLC) is deeply concerned about the recent cash crunch that has gripped the Nigerian economy, particularly as the nation approaches the festive season. This economic challenge has far-reaching implications for the citizens of our great nation, and urgent steps must be taken to address this issue to prevent further hardships for the already suffering Nigerian populace.
“Fresh in the minds of every Nigerian is the excruciating conditions that we were all subjugated to as a result of the last Cash crunch earlier this year that was orchestrated by the ill-conceived and ill-implemented currency redesign policy of the immediate past. The sorrow that botched exercise foisted on us is not what Nigerians wish to witness again in one year.
“This time, there is no discernible reason by the Central Bank of Nigeria (CBN) neither any explanation from the Government on why Nigerians should be subjected to this level of suffering once again in 2023. Though we have heard reasons like; the increase in fake notes in circulation and the hoarding of the Naira. These reasons are clearly unacceptable as we cannot see anything that will make any Nigerian hoard the Naira. In any case, it is not the ordinary Nigerian that hoards money in their houses.
Ajaero strongly argued that subjecting Nigerians to spend their meager salaries to access their money results in the devaluation of income. He emphasized, “POS operators currently charge around N400 to access N10,000. This is about a 4% reduction in the value of the income of poor Nigerians who hardly make use of electronic platforms to perform their transactions.”
Expressing concern about potential citizen backlash, Ajaero warned, “We are worried that by this action and others, the Government may be inciting the people and mobilizing them to seek alternative routes for protecting themselves from these perverse policies. We believe that the elastic limit of the patience of Nigerians is being breached and no government inflicts this level of pains on its citizenry and expects them to keep quiet for a long time. Forcing Nigerians into revolt by continuously taking actions that deny them basic access to survival will not augur well for our nation.
“This cash crunch is indeed another test of the already worn patience of Nigerian masses and workers.
“During this Yuletide season which is traditionally a time of joy, celebration, and familial gatherings, but the current cash shortage threatens to cast a shadow over the festivities for many Nigerians. The unavailability of cash has led to increased difficulties in meeting daily needs, exacerbating the economic challenges faced by ordinary citizens.
Ajaero urged collaboration with financial institutions to improve banking services and ensure the availability of cash at ATMs and bank branches. He stressed the need for clear and transparent communication from the CBN regarding steps taken to address the cash crunch, stating, “Excuses are not what Nigerians want to hear but access to their money.”