Potential N50 Billion Daily Economic Loss Looms as Nigeria Braces for Impending Strike, Experts Warn

Economic experts across various sectors have issued a stern caution, highlighting the potential daily loss of N50 billion if Organised Labour proceeds with its scheduled strike on Tuesday. While empathizing with the plight of Nigerians, they have raised concerns that the timing of the industrial action could further exacerbate the nation’s economic challenges.

The experts unanimously agreed that the strike, if implemented, would not only compound the existing economic problems but also instill fear and send negative signals to foreign investors. They stressed that the consequences of the strike could place added pressure on the economy, resulting in significant revenue losses.

Expressing his apprehension regarding the strike’s potential impact, Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria (ASBON), emphasized that it could erode investor confidence in the economy and disrupt funding opportunities for Small and Medium Enterprises (SMEs). Referring to previous estimates from the Nigeria Bureau of Statistics (NBS), Egbesola estimated that the strike action might lead to an approximate daily economic loss of N50 billion.

Egbesola stated, “Historically, strikes in Nigeria lead to the shutdown of businesses, closure of government offices, and a complete cessation of work. The entire nation grinds to a halt, resulting in financial losses for businesses and enforced idleness for workers.”

“The widespread repercussions of such strikes impede the growth of the national economy. Business owners struggle to meet their financial obligations, including loan repayments and the timely delivery of goods and services to clients. Consequently, bad loans and customer dissatisfaction rise. Investors lose faith in the economy, hindering funding opportunities for SMEs.”

“In the final analysis, our Gross Domestic Product (GDP) plummets, inflation rates surge, foreign exchange becomes scarcer, exacerbating exchange rate fluctuations. The cost of living rises, unemployment levels increase, and instances of vices and crimes escalate. Poverty rates soar, eroding public confidence in government and governance.”

“In some instances, the strikes can result in loss of life due to violence and accidents stemming from protests. This is exacerbated by the closure of public hospitals and the unavailability of medical personnel.”

“Drawing from previous assumptions made by the Nigeria Bureau of Statistics (NBS) during past strike actions, we estimate potential daily losses of up to N50 billion.”

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