NLC Condemns Governors' 'Cruel and Shameful' Prescriptions to Revive Nigerian Economy

The Nigeria Labor Congress (NLC) has condemned measures suggested by state governors to revive the country's ailing economy.

The 33 measures, which include higher taxes and massive layoffs of workers, speak of "extreme selfishness and senseless cruelty", the union said on Friday.

PREMIUM TIMES exclusively reported how governors advised President Muhammadu Buhari to consider implementing urgent measures to instill fiscal discipline and prevent the nation from collapsing economically.

Suggestions include eliminating the fuel subsidy estimated at over 4 trillion naira, retiring civil servants from the age of 50, closing or merging government agencies, ending the use of central bank advances for budget financing, the elimination of the NNPC financed by the federation. projects, and capping the budgets for the Social Investment Program (SIP) and National Poverty Reduction with the Growth Strategy at N200 billion.

Responding to the proposals, NLC Chairman Ayuba Wabba in a letter to the President on August 8 said that while it is clear that the country's economy needs a turnaround, some of the prescriptions are cruel. Mr Wabba said the NLC found the planned removal of the gasoline subsidy “unrealistic, insensitive and hypocritical”.

“It is common knowledge that governors have always been against the culture of saving for rainy days. Despite this culture of recklessness that predates your administration, few have anything to show for everything. the money they raised,” he said.

"If there is little or nothing to show for the principal sums or income received over the years, what assurance do we have that the additional sum on top of the principal commonly referred to as grant (most of which is surrounded by mystery and crime anyway} can be used effectively."

The labor group also opposed the governors' recommendation to raise and raise taxes, saying it would only make the poor poorer and the rich richer.

Taxes include state sales tax of 10%, VAT increase to 10% with a timetable to reach 20%, and a flat personal income tax of 3% for all Nigerians .

Mr. Wabba said the recommendation would encourage the rich to pay less, in clear violation of the well-known norm that the rich pay taxes to cover the poor.

"The rich should be the ones who have to be forced to pay more taxes as is obtained in other civilized societies and not what governors demand. Accordingly, we call for an increase in taxes to all levels for the wealthy, including higher taxes on luxury goods and lifestyles,” he said.

He also said that Congress finds it objectionable that gasoline subsidies in Nigeria create distortions in the economy, but do the opposite in the United States or Western Europe.

"The truth is that removing the little advantage enjoyed by the average person in Nigeria could lead to unintended consequences which we would be better off without," he said.

He said running the country's refineries efficiently is the solution to subsidies and bloated deficits. He pointed out that the $1.9 billion that Nigeria loses every month to oil thieves is enough to fix the problems in the education sector.

Mr. Wabba also called the governors' suggestion to fire public servants over the age of 50 "disgusting, shameful and totally irresponsible".

READ ALSO: Fuel Shortage: Hold Government Accountable, Don't Blame Labor, NLC Advises Nigerians

"In addition to going against your mission and your principle of creating 100 million jobs (outside of poverty intervention programs}, this policy is a clear invitation to anarchy and damnation. Those who promote this idea should be treated as enemies of your government," he said.

“Implementation of this proposal will result in the dismissal of nearly a quarter of the public sector workforce, the beheading of that workforce by the...