The Nation Newspaper

Tag: NUCFRLANMPE

  • NUCFRLANMPE seeks increase in minimum wage

    NUCFRLANMPE seeks increase in minimum wage

    The National Union of Chemical, Footwear, Rubber, Leather, and Non-Metallic Products Employees (NUCFRLANMPE) has said that the current N70,000 minimum wage remains grossly inadequate to cushion the impact of Nigeria’s rising cost of living.

    Speaking with The Nation, the union’s President, Bolarinwa Sunday, said the economic hardship facing workers and industries is both severe and worsening.

    “The effects of these high costs are very real and damaging. It has forced many workers and Nigerians to cut down on essential items,” he said.

    Giving a personal example, he said: “For instance, I’ve switched from buying liquid milk to powdered milk for my children. Many families are making similar adjustments.”

    Industries, he added, are also reeling under the strain.

    He said: “Take DStv, for instance, there has been a significant drop in subscriptions. When people can’t afford basic services, industries lose revenue, and jobs are lost. If purchasing power continues to shrink, it’s only a matter of time before more companies fold up.”

    READ ALSO: Tribute to Omololu Olunloyo

    Bolarinwa identified heavy dependence on imported raw materials as one of the major challenges in the sector.

    “Almost everything we use is sourced from abroad. This makes us extremely vulnerable to fluctuating foreign exchange rates; one day it’s N1,400, the next N1,600. It’s hard for industries to plan. The unpredictability forces companies to pause operations while seeking fresh approvals from directors to adjust budgets. This hurts factory output and the sector’s overall performance,” he said.

    Commenting on recent exchange rate adjustments, he added: “Frankly, we’re not where we should be. While it’s better than the chaos of last year, we must remember that just two years ago, the dollar exchanged for about N500. Today, it’s over N1,500. That’s a massive jump. True stability is yet to return. We continue to urge the Central Bank of Nigeria (CBN) to bring rates further down, even if not to N1,000 at least to a more manageable level to ease pressure on industries and Nigerians alike.”

    Bolarinwa urged the federal government to implement decisive measures such as tax holidays, production incentives, and industry-friendly policies.

    “During my time in the cocoa industry, producers received up to 40 percent in annual production rebates. Policies like that kept industries alive and thriving,” he said.

    He also highlighted electricity, logistics, and taxation as key obstacles.

    “Industries need a dedicated electricity tariff to survive. We also require better roads and infrastructure to reduce logistics costs. If these issues are tackled seriously, not only will existing multinationals stay, but Nigeria could attract even more foreign investment,” he said.

  • Harsh economic conditions forcing firms to relocate, union leaders allege

    Harsh economic conditions forcing firms to relocate, union leaders allege

    The removal of the fuel subsidy has triggered a wave of economic challenges, forcing companies to relocate from Nigeria to more favourable environments, union leaders warned.

    President of the National Union of Chemical Footwear Rubber Leather and Non-Metallic Products Employers (NUCFRLANMPE), Babatunde Olatunji, and the Executive Secretary of the Chemical and Non-Metallic Products Employers’ Federation (CANMPEF), Femi Oke expressed their concerns today at the 7th Quadrennial Delegates’ Conference of NUCFRLANMPE in Ado-Ekiti.

    The union leaders’ remarks come amid broader concerns about the country’s economic direction, with the removal of the fuel subsidy and the increase in petrol prices serving as critical issues that have significantly impacted industrial productivity and employment.

    Oke lamented the severe effects of the recent fuel subsidy removal on businesses.

    “The atmosphere here has become so bad, courtesy of the fuel subsidy removal, which is having devastating effects on the industrial sector,”

    He explained that the harsh economic situation is driving companies out of Nigeria, a development that could worsen the country’s already high unemployment rate.

    Read Also: Make real estate, driver of economic growth

    The conference, themed “Leading the Union in an Era of Economic Instability,” saw union leaders call on President Bola Ahmed Tinubu to urgently address the worsening economic situation.

    Oke praised the outgoing NUCFRLANMPE President, Olatunji, for his leadership over the past eight years, urging members to cooperate with the incoming president during this challenging time for the industry.

    According to Olatunji, the decision to remove the fuel subsidy was made hastily, without adequate consideration for measures to cushion the negative effects on the populace and industries.

    “The hastiness in removing the fuel subsidy without considering measures to mitigate its possible negative effects remains the starting point for the current economic instability,” Olatunji stated.

    He criticised the “top-down” approach to decision-making, arguing that a more inclusive “bottom-up” strategy would have been more effective in managing the fallout of such a significant policy change.

    Olatunji further emphasised the need for the government to support local industries, particularly by ensuring that Nigeria’s refineries are operational.

    “We have four public refineries, but none are working. It is even more concerning that the Dangote Refinery and other modular refineries in the country are not receiving adequate support from the government,” he noted.

    He also addressed the high electricity tariffs, calling them another “hydra-headed monster” affecting both businesses and individuals in Nigeria.

  • NUCFRLANMPE seeks reopening of borders

    NUCFRLANMPE seeks reopening of borders

    • 10 firms shut in six months

    The National Union of Chemical, Footwear, Rubber, Leather and Non-Metallic Employees (NUCFRLANMPE) has called on President Bola Tinubu to open the borders to allow inflow of food to lessen the effects of hunger.

    Speaking with The Nation, the National President of NUCFRLANMPE, Comrade Goke Olatunji said this became necessary following the rise in prices of food items, which many have attributed partly to the inability of farmers to access their farmland as a result of insecurity.

    He appealed to the government to reconsider its hard stance on the policy to curb hunger as reopening the borders is an immediate intervention that can make food available and affordable to the population. He called on the government to re-introduce the Price Control Board. He said this is necessary to checkmate arbitrary hikes in the prices of goods.

    Olatunji noted that about 10 companies have shuthin the last six months, adding that five more are planning to close shop or relocate to neighbouring countries.

    His words: “The Federal and state governments should expedite action in ameliorating the pain and suffering of Nigerians before it gets out of hand. This is necessary because the  increase in fuel pump price has affected all sectors of the economy.

    “We plead with the government to hasten up and come out with policies to lessen the suffering Nigerians, especially workers are going through because of the removal of subsidy on Petrol. Nigerians are suffering.

    Read Also: Why we pegged minimum wage at ₦70,000 — Tinubu

    “It is time to revive the local refineries, build infrastructure such as road networks and electricity supply as well as develop the iron and steel sector which is key to economic growth.

    “Insecurity should be tackled, multiple taxation, rent and charges should be regulated to allow manufacturing companies survive and promote Gross Domestic Product (GDP) in Nigeria

    “The government should allow manufacturers direct access to forex and also tackle high rates of dollar to naira.

    Also, the hike in the electricity tariff is another terrible decision that is killing most of our companies. Some of these companies now pay millions of naira to the light that they don’t have. The situation is so bad.’’

    Olatunji noted that economic issues were affecting industrial relations, saying: “One of the effects is job losses arising from factory closure and redundancy. Some managements have devised strange practices such as outsourcing and contract staffing which are odd to normal employment practices.’’