Make forex available to genuine local manufacturers ― Labour charges FG

The Association of Senior Civil Servants of Nigeria (ASCSN) has called on the Federal Government to make forex available to genuine local manufactures to boost local productions and stimulate businesses and the economy.

The association, an umbrella body of all senior workers in the civil service has also demanded the immediate return of gratuity to retiring civil servants, stressing the fact that the extant pension act that introduced the contributory pension does not erase payment of gratuity.

Speaking at the National Executive Council (NEC) meeting of the ASCSN in Lagos on Monday, President of the Union, Comrade Tommy Etim Okon, regretted that the forex policy has led to the fee fall of Naira against other international currencies and has affected the capacity of local manufacturers to produce.

Regrettably, Comrade Tommy pointed out that this has affected every facet of lives, leading to an increase in food prices, spare parts and negatively impacted on prices in every other sector of the economy.

He, therefore, added that the Federal Government must immediately ensure that forex is made available to local manufacturers, to grow and sustain their business and compete with their international counterparts.

According to the ASCSN President, “with the new forex policy by the Federal Government through the Central Bank, we have now seen the free fall of Naira vis-a-vis the other international currencies. Our position is very clear, we call on the Federal Government to ensure that forex is made available to genuine manufacturers only, to enable them to fulfil and increase their local production because if there is an increase in the local production of goods and services, it will stimulate businesses; and the informal economy will also grow where goods and services are locally produced.

“The informal economy is what is even driving the real economy, so it is really important that the government look into that by ensuring that genuine manufacturers are given a level of forex needed to support their local production so that this will impact positively on the economy and jobs will be created.

“The policy has seriously affected everything about the economy, the food prices, spare parts and every other sector of the economy.”

Expressing worries over the value of Naira, he said: “The free fall of the Naira against the US Dollar and the consequent rise in the cost of living has been a major concern for the citizens and the government must, therefore, take necessary measures to improve its fiscal policies to shore up the naira and check the consistent downward slide of the currency.

“For, it is indeed worrisome that about five years ago, N160 was exchanging for one dollar and right now as at 5th August, the exchange rate is about N515 to one dollar, a devaluation of almost 400%. Experts fear that unless Nigeria increases its foreign reserves, reduce its appetite for foreign loans, boost local production to depend less on the importation of goods including refined petroleum products, the Naira will continue its downward slide.

“Reports also indicate that the Central Bank of Nigeria (CBN) unwittingly weakened the Naira in May 2021 when it adopted what it called Nigerian Automous Foreign Exchange Rate (NAFEX) of N410.25 to a dollar and removed the N379 per dollar rate that for months, remained on its website.

“Since then, the naira has continued its free fall against the dollar and experts warn that if this trend is allowed to subsist, the country’s economic fortunes may face further decline.

“It is against this background I call on the Government to ensure that forex is made available to genuine manufacturers only to enable them to increase local production of goods in order to stimulate businesses. The current exchange rate is certainly having adverse effects on the economy because the cost of essential items such as drugs, raw materials for industries, food items, spare parts, automobiles, etc, have continued to trigger inflation leading to the lowering of purchasing powers of millions of Nigerians. The Government needs to act fast to revamp the economy.”

He clamoured for the urgent return of gratuity payment to retiring civil servants, lamenting that since the Pension Reform Act 2004 was enacted, the government has stopped paying gratuity to public service employees while private-sector employers are still paying gratuity to their workers on leaving service.

Comrade Tommy stated that the stoppage of payment of gratuity to public service employees was very unfortunate, adding that even though the Act was silent on payment of gratuity, it did not expressly abolish it, and as such, it remains an inseparable component of the Laws of the Federation of Nigeria.

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