*Warns that strike could plunge Nigeria into another recession
*Empathises with Nigerians, says petrol price hike, hardship will not be permanent
*Opposes N70bn palliatives for NASS
Ayo Ola
A retired Deputy Director of the defunct Department of Petroleum Resources, Engineer Sunday Adebayo Babalola, on Thursday, urged the Federal Government under President Bola Tinubu and the Nigerian Labour Congress to use dialogue to iron out their differences.
The Nigeria Labour Congress, NLC, gave the Federal Government a seven-day ultimatum to reverse all perceived anti-poor policies, including the recent hike in the pump price of petrol, or face an indefinite nationwide strike from August 2.
But Babalola, in an interview with journalists on Thursday raised the alarm that the strike will cripple Nigeria and plunge her into deeper woes.
He stated that it could even lead to another recession, warning that Nigeria is too fragile now to go into another recession.
He, therefore, urged the Federal Government under President Bola Tinubu and organised labour to avert the impending strike.
Babalola stated that the strike threat by the NLC, if not averted, could plunge Nigerians into more hardship.
He said the strike would further dislocate businesses and lead to unquantified financial losses and reduce Nigeria’s Gross Domestic Product.
He urged the FG and labour to dialogue, adding that labour should not go ahead with the strike.
He also called on the FG to display fidelity to its promises to Nigerians and agreement with labour as a way of averting the strike and cushioning the hardship Nigerians have been plunged into since the removal of subsidy on Premium Motor Spirit (PMS) otherwise called
petrol or fuel.
He also appealed to the NLC not to go on strike, adding that dialogue with the government should be the best option.
Babalola, who is a former Kwara State governorship aspirant, told Nigerians that the current hardship will not be permanent.
He urged them to only spend on essential things and cut costs.
Babalola said,”We should be patient. This hike will settle itself out. When they removed the subsidy on diesel, 3, or 4 months ago, we were buying diesel for about N1000 per litre. But right now, it has come down to N600 per litre. So it will be moving up and down. Now Nigerians should also be sure that whatever is happening now is temporary. It will abate. I want to assure Nigerians that hard times never last but tough people do. The hard times will, without doubt, go ahead.
“I want to advise Nigerians to cut costs from those things that they are doing that are sincerely not necessary. For somebody you want to call and discuss something, call the person on the phone and not you must see the person. There is a saying that ‘talk is in the eye.’ You do not need to see the person before you talk. So cut unnecessary expenditure. If and do those things that are truly necessary, everything will eventually stabilise. It is better for us to go through this than for us to pretend that we are doing subsidies
whereas a few are embezzling the nation’s treasure.
“The marketers should import the refined product. It is now an open system. I want to advise everybody that this thing is not one-way traffic. So many things will be affected by what we are doing now. The exchange rate will affect it, oil prices will affect it.
“The government should just be focused and do the right thing. They have the facts. They have the data. My advice will be based on what we read in the newspapers and hear on the television news. But the real advice is if you have the raw data and you analyse it. Then you can give proper advice. But on the surface, they should be focused. The
issue of palliative subsidy should be totally de-emphasised because we do not have good statistics that will clearly show who is getting what. So we will be enriching a few people. A few years ago, we had pensioners’ money eaten and some people who are there are still
looking for a way to make money out of government. They will just raise a few people or the same set of people who will now find ways to corner the money. Even without NIN, there are fake accounts. You can see it because a lot of people are still doing 419.
“The labour should sheathe their sword because, in a turbulent environment, you can not think of a solution. What will the government give to the workers? If you add N10,000 or N20,000 to them, how much effect will that have on the school fees? How much effect will that have on food, even water they drink? We are not creating or doing the things that will actually help the people. Even if I have ideas for business now, so many things will come to play. Where will I get the capital? You can not go to the bank to take a loan. Interest rates are too high for one to take the loan and there is no moratorium. To take the loan, immediately it will start counting. And you can not take a loan for foreign direct investment because the moment you take the loan, even repatriating the loan to pay back the credit will be difficult because of our exchange rate policies. So a lot of policy directions should be analysed. It is not just, ‘Let us give them more money.’ if you give them more money, inflation will take it.
“They should think together about what will help the generality of the people and not what will help 30 per cent of the people because everybody that is a salary earner today may not be more than 30 per cent of the population. What happens to the remaining 70 per cent?
Both the FG and Labour should avert this strike. They should sheathe their sword and come together and think together. How can we help the populace and not how will we put more money in our pockets that inflation and the exchange rate will eat away and at the end of the day,
they are virtually back to square one?
“Govenment should be serious with its promises. Government should create a good environment for business. That is what the government should be thinking about now. Nigerians are not lazy, Nigerian are hard working and they think. When there is no environment for them to manifest their prowess, what they will do is start looking for other
ways to make money and that is what caused 419.”
Babalola said it is morally wrong and insensitive for members of the National Assembly to allocate N70 billion as palliatives for themselves.
He warned against creating another avenue for a few people to amass the nation’s wealth at the expense of the masses.
He said he is opposed to the $800m World Bank facility to Nigeria, which request by President Tinubu had been approved by the Senate because corruption could creep in the distribution of the fund.
He urged the government to create a good environment that is enabling for businesses to thrive.
Babalola said, “I am opposed to the World Bank’s offer. Getting the N70bn by the NASS is not the same thing that Nigerians are suffering.
This is why I am opposed to the $800m World Bank facility because everybody would want to share it. The people you are doing palliatives for will not even get it. I am saying do not collect the world bank facility but they are people in government.
Taking the N90bn some other privileged people will take a certain percentage of it and before they finish the masses they claimed they are helping, will get nothing. The money would have gone and it would have become a debt burden on the country. I am opposed to taking it all.”
He added, “The government should simply create an environment that is good for business. People will think through. People will think of how to survive and they will do business but the environment itself is not good. Insecurity everywhere.
“Overtaxes everywhere. The environment is not good for business. You can not say you want to import something and you will be paid outrageous bills. You can not say you want to be a manufacturer because the raw materials are not there within the country. They are
going to import and the availability of foreign currency is not also there and the thing will keep going high.
“So the environment for business is a multi-dimensional issue that one will discuss but then it is not a good thing by taking loans because the loan will not reach the people who they are claiming they are doing the palliative for. Unless they assure us that they will do it
in such a way that it will reach them. But how will it reach them? You will see a lot of accounts in spite of Bank Verification Number (BVN) and National Identification Number (NIN).”