The National Union of Chemical, Footwear, Rubber, Leather, and Non-Metallic Products Employees (NUCFRLANMPE) has said that the present N70,000 minimum wage is not enough to ease the impact of Nigeria’s rising cost of living.
The union’s President, Bolarinwa Sunday, recently revealed that the hardship facing workers and industries is worsening by the day.
Speaking during an interview with The Nation, he said that the effect of the increased cost of living has been very damaging to Nigerian citizens, and it has even forced several workers in the country to forgo purchasing essential items.
According to him, he personally switched from buying liquid milk to powdered milk for his kids, and he is more than certain that several other families are making even more drastic adjustments.
Bolarinwa highlighted DSTV’s reduced customers are further proof that the minimum wage must increase, noting that Nigerians who cannot even afford the basic things of life will have no choice but to sacrifice things they would normally want but can do without.
“The effects of these high costs are very real and damaging. It has forced many workers and Nigerians to cut down on essential items.
For instance, I’ve switched from buying liquid milk to powdered milk for my children. Many families are making similar adjustments.
Industries are also reeling under the strain. Take DStv, for instance, there has been a significant drop in subscriptions. When people can’t afford basic services, industries lose revenue, and jobs are lost. If purchasing power continues to shrink, it’s only a matter of time before more companies fold up,” he said.
He further mentioned the heavy reliance on imported raw materials as one of the major problems in the NUCFRLANMPE sector, urging the government to rectify how that makes the country extremely vulnerable to fluctuating foreign exchange rates.
He then advised the government to quickly implement decisive measures like tax holidays, production incentives, and industry-friendly policies to ensure key industries continue to thrive.
“Almost everything we use is sourced from abroad. This makes us extremely vulnerable to fluctuating foreign exchange rates; one day it’s N1,400, the next N1,600. It’s hard for industries to plan. The unpredictability forces companies to pause operations while seeking fresh approvals from directors to adjust budgets. This hurts factory output and the sector’s overall performance.
Frankly, we’re not where we should be. While it’s better than the chaos of last year, we must remember that just two years ago, the dollar exchanged for about N500. Today, it’s over N1,500. That’s a massive jump. True stability is yet to return. We continue to urge the Central Bank of Nigeria (CBN) to bring rates further down, even if not to N1,000, at least to a more manageable level to ease pressure on industries and Nigerians alike.
During my time in the cocoa industry, producers received up to 40 percent in annual production rebates. Policies like that kept industries alive and thriving.
Industries need a dedicated electricity tariff to survive. We also require better roads and infrastructure to reduce logistics costs. If these issues are tackled seriously, not only will existing multinationals stay, but Nigeria could attract even more foreign investment,” he added.
Folami David is a dynamic journalist who views the world through an analytical lens, translating complex narratives across multiple industries into compelling stories. With an insatiable appetite for information and a keen eye for emerging trends, Folami specializes in uncovering the interconnections between technology, business, culture, and society.
