This is another interesting post I found online. Read and be duly informed.
President Muhammadu Buhari has admitted administrative measures put in place within his five months in power have been injurious to businesses in Nigeria.
Buhari made this known in New Delhi, India claiming that such critical measures would in the long run sustain the economic growth of the nation.
- “We are aware some of these measures may hurt operations of some businesses in the short term, but we believe they are right for a sustainable economy,” the President said.
Although Buhari has not shown any coherent economic direction since the inception of his government, it is believed that more sectors are bound to suffer imminently.
In particular the Banking Sector is poised in a precarious situation. This sector has been in the news in recent months as a result of the implementation of the Treasury Single Account, TSA.
Commercial banks have been mandated to sweep up government funds from every nook and cranny of all Government Ministries, Departments, and Agencies into a central purse.
As aesthetic as it is the initiative sans palliative measures to cushion its effects have sparked job losses at these banks.
Zenith Bank PLC sacked no fewer than 1,200 employees from different branches across the country with eight General Managers and 40 Assistant General Managers in the number.
Access Bank PLC sacked over 1,600 of its workers across the nation, while Mainstreet Bank, one of the three nationalized banks lay off over 400 of its workers for similar reasons.
Construction companies on the other hand are faced with huge cash crunches occasioned by Government’s inability to honor debt obligations on schedule. With no new contracts issued, several firms have resorted to laying off of staff en masse.
Construction firms had grumbled about both Federal and State Governments heavily indebted to various construction projects leaving them with no option than to resort to sacking of staff.
The China Civil Engineering and Construction Corporation, CCECC, responsible for the Lagos Blue Line Light Rail, project were reported to have sacked at least 500 workers.
Famous multinational construction giant Julius Berger after sacking thousands last year, barely four months ago planned to dismiss 5% of its current workforce although the National Industrial Court of Nigeria, NICN, in Abuja under presiding judge, M. N. Esowe, ordered the company not to do so.
Julius Berger’s debt profile amounts to N90 billion asides the over N34 billion borrowed from commercial banks.
More companies stationed within Nigeria have begun to seek relocation to other climes.
Construction companies like Costain West Africa Plc, from the United Kingdom who were once household name in the 70s and 80s have gone extinct.
Most threatening is the high inflation rate that has bedeviled the country and according to the
Nigerian Bureau of Statistics, NBS, who quoted Consumer Price Index, CPI, which measures inflation, “The largest increases were recorded in books and stationeries groups as a result of the start of the new school year, household textiles, glassware, tableware and household utensils; and shoes as well as other footwear groups.”
Post Nigeria had reported that three weeks into Buhari’s administration food prices climaxed to such heights the common man can barely feed.
The World Bank in September rated Nigeria among the 16 worst places in the world to do business.
Credit -Google
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