Few days ago, stakeholders in the nation’s industrial relations sector gathered in Lagos to examine the “Challenges of Nigeria’s Economic Downturn: Survival Options for Workers.’’
The event was the 2024 annual capacity building workshop organised by the Labour Writers’ Association of Nigeria, LAWAN, which attracted, the National Pension Commission, PenCom, Nigeria Labour Congress, NLC, Trade Union Congress of Nigeria, TUC, Nigeria Employers Consultative Association, NECA, Non-Academic Staff Union of Educational and Associated Institution, Petroleum and Natural Gas Senior Staff of Nigeria, PENGASSAN, Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, Maritime Workers Union of Nigeria, MWUN, Food Beverage and Tobacco Senior Staff Association of Nigeria, FOBTOB, among others
Delivering the lead paper, the guest lecturer and Human Resource Director, Cadbury Nigeria Plc, Dr Wole Odubayo, decried Nigeria’s over-dependent on oil, making the economy susceptible and forcing government into all kinds of reforms to stabilise the economy.
He however contended that while reforms were necessary or inevitable in today’s Nigeria such reforms must, however, have a human face, “so that the pain does not outweigh the gains”, saying in the absence of an enabling environment required to succeed, lots of people are now devising various ways to survive.”
According to Odubayo, “The current administration has tried to engage the private sector to explore the best strategies for rebooting the economy. To this end, the Federal Government had, earlier this year, set up a Presidential Economic Coordination Council comprising top government functionaries and eminent players from the private sector. The key takeaway is that the government appears to be committed to growing the economy.
“However, these measures seem not to have made the desired impact yet. For instance, the Manufacturers Association of Nigeria, MAN, recently lamented that most of its members currently operate at about 40 per cent of their capacity due to the astronomical increase of 250 per cent in electricity tariff for industrial consumers. According to MAN, this new policy has led to a reduction in the number of shifts and downsizing of the workforce in some manufacturing companies.
“We have witnessed the exit of some foreign multinational companies in the country that could no longer cope with the operating environment. Nigeria’s manufacturing sector is going through a very difficult time.”
These, he lamented had impact on workers leading to unemployment and underemployment, the high unemployment rate has left many Nigerians without jobs and struggling to meet basic needs. “Many workers in the informal sector have been forced into low-paying and unstable jobs, with underemployment rates also rising with inflation severely impacting purchasing power”, and so on.
Survival options
Among others, speaking specifically on survival options for workers, Dr Odubayo listed some options to include “Skill Development and Education. Workers need to up-skill and re-skill i.e. to acquire new skills and adapt to the changing job market demands to remain employable. This is the time to “learn, unlearn, and relearn”. Workers should start enrolling in online courses, vocational training, and professional certifications to enhance their skills. These skills will over time improve their efficiency and effectiveness which will lead to greater productivity and more financial rewards.
“Entrepreneurship and Self- Employment: Workers need to explore entrepreneurship as a viable option for income generation. Micro, Small, Medium Scale Enterprises (MSMEs) have been working adjudged over the years to be a veritable tool for survival not only for the entrepreneur but also to contribute to the economic growth of the nation.
“Various schemes exist today that workers can tap into examples are AGSMEIS (Agribusiness Small and Medium Enterprises Investment Scheme) by the Bankers’ Committee, Anchor Borrower Scheme by the CBN, Agribusiness Development and Entrepreneurship Programme, ADEP, Product Advancement and Marketing Enhancement Scheme, and PAMES, Women-In-Self-Employment Program (WISE-P). Most of the commercial banks also have various programmes to support Micro, Small, Medium Scale Enterprises (MSMSEs). There is also the World Bank SME loan scheme, the African Development Bank Export Stimulation. Mental reorientation for workers from consumption to production (Agric entrepreneurship (Own & commercial consumption)
“Networking and Support Systems. Building and leveraging professional networks for job opportunities, mentorship, and support. Community and Family Support are important because connections with friends, family, and colleagues offer a good platform to share tips and strategies for survival during tough times.
“Financial Management. Budgeting and Saving Strategies: workers need to be prudent by leveraging effective budgeting, saving, and investment practices to manage their finances better.
Access to Microfinance and Cooperative Societies: Workers should join microfinance institutions and cooperative societies that offer financial support and loans to small businesses and individuals.
“Changes and adjustment to lifestyle. Cut your coat according to the available clothes. Don’t show off, don’t expose yourself to attacks, never spend without a budget. This might sound like kindergarten advice, but it is a very valuable tool in navigating financial distress. It helps keep the focus on “need to have” rather than “nice to have”, helps remove unnecessary spending and instills the discipline of financial management. Watch your Utility bill. Whether we like it or not, we must still save and invest wisely.”
Also speaking, President of the Trade Union Congress of Nigeria, TUC, Festus Osifo, expressed concern over the continued crude oil theft in the Niger Delta despite the heavy presence of security personnel drawn from the military and the civil defence.
