The Labour-Civil Society Situation Room has declared support for industrial action in states that are deducting salary as well as retrenching workers under the guise of economy downturn as a result of COVID- 19 pandemic.
The group in a communique Thursday in Abuja, chaired by President of the Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, demanded adequate protection for workers in the country, and what was described as a home grown citizen-centric economic model as sustainable response to the pandemic.
They expressed worry over the continued incidence of job losses, income deprivation and denial of the means of livelihood for workers by some employers who were using Covid-19 as an excuse.
The communiqué read in part: “The Labour-Civil Society Situation Room on Covid-19 unequivocally condemns and rejects the arbitrary deduction in the salaries and pension of workers and pensioners, respectively, by the Kaduna state government and other states.
“We demand that state governments must reciprocate federal government’s gesture in granting moratorium on repayment of budget support palliatives by paying workers and pensioners their full entitlements. We also renew our calls for investigation on how states used the palliatives and Paris Club refunds.
“We demand that private sector employers should stop the retrenchment of workers in the guise of Covid-19 as such moves would only impair efforts geared at economic revitalization.”
Raising concerns over the proposed downsizing of the 2020 budget by the federal government in line with global trends, the situation room noted that budgetary cuts in critical sectors and the freezing of new recruitments in all the Ministries, Agencies and Departmen (MDAs) of government except those in the health and security sectors, would make economic recovery from the COVID-19 crisis more difficult.
They also noted that the over-padded emoluments of political leaders in Nigeria have remained untouched including their unregulated access to security votes. In view of these, the situation room has recommended the adoption of a measured approach to the fallout of Covid-19.
“Government should not cut down on budgetary allocations to education, health, agriculture and infrastructure as the sectors are critical for the needed economic rebound and growth. Government should unfreeze the embargo on public sector jobs. Also, hike in user access charges on public utilities should be shelved for the next six months;
“Given the abuse of security votes by many political office holders in the executive branch of government, we call for the scrapping of security votes from public budgeting in Nigeria. Security votes should be appropriated and accounted for like every other budget item.
“We call on political office holders to reduce their salaries and allowances in order to free up finances for other areas of national developmental needs. We also call for an end to medical and education tourism for elected public officials and their families.”
While calling for an immediate stop to the practice of borrowing to finance consumption, the situation room which expressed worry over the increasing rate of foreign borrowing said foreign loans where necessary, should be tied exclusively to capital projects with feasible income and debt repayment potentials cum projections
“Just before the COVID-19 pandemic in Nigeria, Nigeria’s external debt had hit a 16 year high of US$27 billion with a debt servicing commitment of US$1.5 billion per annum which is about 5% of our 2020 federal budget and 75% of our external reserves.
“It is of great concern that our current total debt profile is almost at par with what we owed the Paris Club before the debt amnesty of about US$18 billion from a total debt stock of US$35.994 billion. CBN records show that the Federal Government borrowed over N4.4 trillion by ways and means in 2019. This is far beyond the maximum of N4.5 billion allowed in CBN legal statutes.”
The Labour-Civil Society Situation Room also urged government to make the budgetary and planning process in Nigeria more socially inclusive, citizens-centered, value objective and reflective of real national developmental needs.
