Cash squeeze: Ngige meets NLC, CBN to avert protest

Members of the Nigeria Labour Congress (NLC) were planning to strike and picket the CBN offices across the country, so yesterday, the Minister of Labour and Employment, Dr. Chris Ngige, met with Joe Ajaero, the president of the NLC, and top CBN officials, including Governor Godwin Emefiele.

Ngige urged the NLC to engage the CBN through productive dialogue rather than causing further harm to the already unstable economy when he met the groups at the Ministry of Labour in Abuja.

According to a trustworthy source who attended the meeting, Ngige stated that social dialogue would enable the CBN to make adjustments sooner rather than when Labour pushes the economy into a crisis.

He claimed that the CBN had responded significantly, but that more money needed to be released into the economy in order for it to reach all areas of the nation.

The CBN promised, according to the source, to make sure there is enough money available for the economy.

According to the source, “he promised that they will ensure cash flow in the economy and promised to extend and deepen what they are already doing, to ensure it circulates. He also promised that by tomorrow there will be a greater improvement in the availability of cash.

At the meeting, Ajaero stated that it was necessary to provide a fresh directive on what had been observed to the National Executive Council (NEC) of Congress.

“Since our NEC members come from various states, they will each present a report on the situation in their respective states. Therefore, decisions regarding whether to go on strike or not will be made in light of their experiences in their respective states, according to Ajaero.

Additionally, the NLC instructed staff to inform state councils when banks were not dispensing cash.

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According to reports, the NLC has scheduled a meeting of its NEC for today to make a final decision regarding the planned nationwide strike for Wednesday.

Following its penultimate Friday NEC meeting, where affiliate unions and state councils were instructed to keep an eye on the cash situation and the progress banks were making with regard to cash disbursement, the NLC issued the directive.

Recall that last week, CBN representatives met with NLC leaders to inform them of the apex bank’s efforts to stabilize the country’s cash situation.

In an effort to alleviate the shortage, the CBN officials also disclosed to the NLC that about N20 billion was distributed last weekend, with Lagos receiving N4 billion and Abuja receiving N2 billion, respectively.

In order to stabilize the situation, the apex bank also instructed banks to extend their hours of operation and work on Saturday and Sunday.

Ajaero is scheduled to address the media in Abuja today to announce the organized labor movement’s next course of action, amid rumors that the planned industrial action may be put on hold.

The NLC activated its state councils and affiliates at its National Executive Council (NEC), which was held via Zoom last Friday, according to a source in Abuja last night. However, there is still no decision on the precise date the protest will take place.

“What we decided to do at the Friday meeting is not anchored on an identifiable level of improvement,” the source said. A team from the CBN approached the Center about the problem. The team described the steps taken by the CBN to ensure there is money.

“They described to us some of the difficulties they face in carrying out that. After being informed of all of these, the NLC can no longer declare the protest. I must say that the NLC is not motivated to stage protests merely for show. We did not specify at the meeting what level of improvement is required before we move forward or stop the process. Therefore, before we decide, we will consider the availability between today (yesterday) and tomorrow (Tuesday).

This is in light of the fact that the majority of banks have confirmed receiving cash, and ATM lines for cash were quite long. Most banks in Abuja’s central business district only offered cash at the counter.

Customers can now withdraw up to N200,000 over the counter, while corporate bodies can access up to N500,000, according to a banker who spoke on the record under the condition of anonymity.

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“The CBN has ordered that the suspended withdrawal caps be lifted,” he continued. Corporate entities can now collect up to N500,000, while private individuals can only get N200,000. Additionally, we have a respectable sum of cash to use at the ATMs. As you can see, the pressure we were under has decreased since a few weeks ago.