Labour union denies Nigerian economy out of recession

SOME workers under the aegis of Steel and Engineering Workers’ Union of Nigeria (SEWUN) have denied the claims that the Nigerian economy is out of recession. They posited that an economy that did not generate jobs but increasing unemployment rate cannot just crawl out of recession as claimed by the National Bureau of Statistics (NBS).

Speaking at a recently concluded Annual Industrial Relations Conference in Lagos, the National President, SEWUN, Comrade Elijah Adigun, stated that over 272 factories were shut while over 3000 people lost their jobs in the steel sub sector of the Nigerian economy.

According to him, “over 3000 steel and engineering workers have lost their jobs while the sector also experienced the closure of 272 factories since 2016 till date. Any economy that is not producing goods and services cannot come out of recession.”

He said since governments are not protecting local industries enough, workers lost their jobs and the “imported inflation” ensures consumers’ purchasing powers reduce, noting that such an economy will slide into recession, needing a robust production-based solution(s) to exit the recession.

“Our deficiencies have to do with inconsistencies, policy summersault and inefficiency as those manning various sectors of our economy are operating outside their field of expertise. What Nigeria needs is a very good crop of technocrats to drive the ship of the economy out of the ocean of recession,” he said.

He argued that the challenges of operating in the country’s current economic context, while being conscious of global standards and trends, informed the union’s choice of ‘Employing Information Technology as a platform for increased effectiveness in a Globalised Economy’ as theme for this year’s workshop.

Resource persons at the workshop, facilitated by University of Ibadan-based Bablink Consultancy Services, included Dr Mike Folorunson, who spoke on Industrial Information Management in a Developing Economy and Leadership Models & Emotional Intelligence; Dr Orji Olasupo spoke on The Impact of Contributory Pension Scheme to Nigeria’s Economic Development; Dr Akinoyo C. O., Stress & Well Being; and Dr Akinwale Lanre, spoke on Information Technology & Engineering Industry in a Global Economy.

Also present at the workshop were Mr Rufus Olusesan, First Vice President of United Labour Congress (ULC), who represented the Lagos Chairman; SEWUN’s Principal Deputy General Secretary, Mr Paul Okonma, among others.

It would be recalled that the NBS on Tuesday claimed that the Nigerian economy is out of recession. According to NBS, in the second quarter of 2017, the nation’s Gross Domestic Product (GDP) grew by 0.55% (year-on-year) in real terms, indicating the emergence of the economy from recession after five consecutive quarters of contraction since Q1 2016.

“This growth is 2.04% higher than the rate recorded in the corresponding quarter of 2016 (–1.49%) and higher by 1.46% points from rate recorded in the preceding quarter, (revised to –0.91% from –0.52%). Quarter on quarter, real GDP growth was 3.23%,” the NBS said.

But some people have denied the claims by NBS by stressing that until Nigerians begin to feel the positive impact, it may be political statement after all.

Leading these critics were former Vice President Atiku Abubakar, Governor Ayodele Fayose, some economists and labour leaders including human rights activists.