Economic hardship: 40 companies shut in 3 years – NUCFRLANMPE president

Babatunde Olatunji, outgoing President of the National Union of Chemical, Footwear, Rubber, Leather and Non-Metallic Products Employers (NUCFRLANMPE), has revealed that economic instability in Nigeria has forced over 40 companies under his association to shut down within the past three years.

Speaking at the 7th Quadrennial Delegates Conference in Ado-Ekiti, Ekiti State, Olatunji criticized President Bola Tinubu’s administration for removing fuel subsidies, exacerbating the country’s economic woes.

This move has sparked widespread concern, with experts noting that while the reforms aim to put Nigeria on track, they were implemented without considering their impact on vulnerable citizens

The event, themed “Leading the Union in an Era of Economic Instability,” provided a platform for discussions on the challenges facing businesses in the current economic climate.

Olatunji suggested that President Tinubu should have implemented measures to mitigate the potential negative effects of the subsidy removal on the general populace.

His words, “As of today, no fewer than 40 companies have closed down within the past three years due to economic instability.

“The hasty removal of the fuel subsidy without considering measures to cushion its potential negative effects has been the starting point of the current economic challenges.

“The removal of the fuel subsidy should have been a gradual process, implemented in phases, rather than an outright removal without taking into account the feelings of the masses.”

Olatunji stressed that a top-down approach to decision-making could only lead to dissent, suggesting that decisions in a democracy should be made from the bottom-up to better reflect the interests of the people.

He urged the federal government to drastically reduce the high cost of governance, address insecurity, fix refineries, strengthen the modern railway system, and revamp the power sector to better serve the needs of the populace.

He also called on the government to reopen the borders with neighbouring countries to allow the importation of rice and other essential food commodities to alleviate hunger.

Reflecting on his achievements during his eight-year tenure, Olatunji said, “During our time in office, we built a guest house and completed our multipurpose shopping mall. We also upgraded the National Secretariat with modern facilities, installed solar panels, and CCTV cameras, among other improvements.”

“Our top priority has always been the welfare of our members, ensuring that their salaries were paid promptly.”

Ekiti State’s Controller of Labour, Grace Adeleye, reaffirmed the Ministry’s commitment to creating a supportive environment for the workforce, particularly in promoting initiatives that enhance workers’ skills and adaptability in the ever-changing economic landscape.

She assured attendees that the Ministry would continue to implement and uphold policies that protect workers’ rights, ensure fair wages, and provide safe working conditions.

Meanwhile, Femi Oke, Secretary of the Chemical and Non-Metallic Products’ Employers Federation (CANMDEF), highlighted the adverse impact of the harsh economic situation, exacerbated by the fuel subsidy removal, which has been forcing companies to relocate from Nigeria to other countries.

Oke warned that this negative trend would only worsen the already high unemployment rate in the country and urged President Bola Tinubu to address the issue urgently before the situation deteriorates further.