TUC Flays Planned Naira Devaluation

The Trade Union Congress (TUC) in Rivers State has critised the planned decision of the Federal Government to devalue the naira over the N18,000 minimum wage.

In a statement in Port Harcourt yesterday, the Rivers TUC chairman, Chika Onuegbu, said the move would hurt the state governments more than the workers, since according to him, some government budgets are for capital items.

Onuegbu was categorical that the move would also result in high prices of capital projects across the country.

Citing Rivers State as an example, Onuegbu said that many of the on-going projects would be re-negotiated in event of naira devaluation as contractors would ask for variation due to devaluation–induced inflation.

Government, he said would only achieve money illusion and a monetary loss of real wage for workers.

According to him, workers and their unions would commence another round of wage agitations with attendant industrial unrest across all sectors of the economy.

Rivers TUC boss said that many of the states and companies that borrowed money in foreign currency would have severe difficulties repaying the loans.

He insisted that ‘since the country does not produce anything except crude oil and gas, but imports virtually everything, the devaluation would simultaneously increase inflation and lending rates.