Nigerians Count Losses as Organised Labour Suspends Industrial Action

Mixed reactions have trailed the Organised Labour’s suspension of its nationwide strike for five days to allow for deeper negotiations and for the tripartite committee to come up with a new national minimum wage.

Nigeria has in the last 24 hours been in the grip of a nationwide strike as organized labour unions, spearheaded by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), disrupting business and government activities across the country. This strike, which began in the early hours of Monday, has brought many aspects of daily life to a standstill, affecting everything from transportation and healthcare to education and commerce.

Many businesses are beginning to count their losses as some Nigerians are not happy the labour unions called off the strike without getting their demand from the government while the labour organisations are happy with the success of the strike action because it has shown their capacity to mobilise and ground the country. The strike was in response to the government’s refusal to meet demands for higher wages, improved working conditions, and better public services. Union leaders argued that the cost of living has skyrocketed, and current salaries are insufficient to meet the needs of the average Nigerian worker.

Impacts on the Economy

The strike’s economic repercussions are profound. Lagos, the nation’s commercial hub, found its usually bustling markets eerily quiet. Businesses were shuttered, and trade activities slowed down significantly. According to the Nigerian Chamber of Commerce, Industry, Mines and Agriculture, the country could lose billions of naira daily in productivity and halted economic activities.

Specifically, the National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, Mr Dele Oye, it was a relief that the strike was suspended as the losses to businesses were not quantifiable

Projecting into the effect of the industrial action, the Director General of the Manufacturers Association of Nigeria, Mr Segun Ajayi-Kadir, had said the impact would be grave. The MAN DG stated that this was not a good time for the strike action considering the ailing economic situation.

His words:” Productivity would be affected as manufacturing firms were unable to run the hours of production leading to a reduced capacity utilisation. During the period when we are not able to meet our production target, it means that the product that will be available for us to sell will be much lower and we are going to have a reduction in the number of manpower, and logistics might also be disrupted because virtually all unions have joined and by doing so, the movement of our raw material will be disrupted and all these will result to lower sales even when our sales have not been impressive in recent times.

“It will also lead to the government’s reduced revenue and the trickle-down effect of that is that what a well-functional manufacturing process would have delivered to the economy will be lost. The impact on the economy will be grave and that was why we indicated that all of us should work together for the betterment of the society”, he added.

The National Vice President of the Nigerian Association of Small-Scale Industrialists, Mr Segun Kuti-George, said: “Every strike has consequences. The fact that if it is obeyed, if it is very popular, it means that there would be a standstill in the economy so it is going to adversely affect the economy of the country”.

Banks and financial institutions have also been hit hard. With many bank employees participating in the strike, customers faced difficulties accessing funds and conducting transactions, exacerbating the financial strain on families and businesses alike.

Transportation Disruptions

Public transportation was disrupted and came to a halt in major cities, leaving millions of commuters stranded. Several filling stations did not sell fuel thereby orchestrating an artificial scarcity and queues in the few stations that had fuel. The few taxis and buses still operating were overwhelmed, leading to inflated fares. Reports from Abuja, Kaduna, Ibadan and Port Harcourt indicate that many residents resorted to walking long distances to reach their destinations.

Air travel was more affected as many travellers were turned back after arriving at the airport. Some of them complained about the additional cost of lodging in hotels. This left numerous passengers stranded and battling with disrupted travel plans, both domestically and internationally.

Healthcare Services in Crisis

The healthcare sector was also in turmoil, with many hospitals and clinics operating on skeletal and emergency services only. The Nigerian Medical Association had warned of a potential health crisis if the strike continues, as patients, especially those requiring urgent and ongoing care, faced significant challenges in accessing the services.

Engr. Niyi Oluwole speaking on the impact of the strike said: “Do you know how many premature babies will die today because the NLC and TUC shut down the national grid? How many hospital emergency patients will perish? This is not a national strike but a national attack by the politically exposed and partisan NLC President ever.

“How does shutting down the National Grid and putting Nigerians in darkness help the economy or workers? Aso Rock has generators. So does the National Assembly. Even Comrade Joe Ajaero has generators and is enjoying air conditioning. It is you that heat is finishing in your house. Meanwhile, factories cannot produce, and the economy is contracting”, he stressed.

Engr. Oluwole added: “What you may not understand is that Federal civil servants are less than 0.3% of the population. If the NLC insists on an unreasonable ₦494,000 a month minimum wage, all that the FG will do is go on a massive sacking spree.

“The people who will suffer are the private sector, who employ more than 65% of Nigeria’s workers. They will not be able to pay ₦494,000 a month and run their businesses profitably. So, they will increase prices for those not working and sack their workers, increasing unemployment”, he added.

Schools and universities also closed their doors as teachers and administrative staff participated in the strike. This interruption in education is a significant concern for parents and students, especially those preparing for crucial exams. The National Association of Nigerian Students has expressed solidarity with the striking workers but urges a swift resolution to prevent long-term educational disruptions.

A Divided Public

Public opinion is divided. Many Nigerians supported the strike, seeing it as a necessary step to force the government to address pressing economic and social issues. However, others were frustrated by the disruption to their daily lives and called for a speedy resolution.

According to Alhaji Abdul Dan Suleiman:” Forget about local politics, our leaders are very bad, do you know how much our senators collect as salary per month? Each of them just collected a vehicle allowance of N160 million”.

Looking Ahead

As the strike is suspended, the pressure mounts on both the government and labour unions to find a common ground. The coming days will be critical in determining the outcome of this standoff. The hope remains that a balanced solution can be reached that addresses workers’ demands while mitigating further disruption to the nation’s economy and daily life.

Suspending the strike for a week is like postponing the evil’s day. Will the organised labour call out workers for strike again in case they are unable to reach an agreement with the government? Will Nigerians still have sympathy for the labour unions if they embark on another strike? The future is full of many uncertainties and only time will tell what happens next.