Cash squeeze: Ngige meets NLC, CBN to avert protest

• Labour still watching cash situation
• May announce suspension of planned protests today
• Queues continue on bank premises</strong

To avert strike and picketing of the Central Bank of Nigeria (CBN) offices nationwide by members of the Nigeria Labour Congress (NLC), the Minister of Labour and Employment, Dr. Chris Ngige, yesterday, met with the President of NLC, Joe Ajaero, and top officials of the CBN, led by Governor Godwin Emefiele.

Ngige, who received the groups at the Ministry of Labour, in Abuja, urged the NLC to engage the CBN through effective dialogue, rather than adding more pain to the already troubled economy.

A reliable source, who was privy to the meeting told The Guardian that Ngige said engaging in social dialogue would help the CBN to adjust faster than when Labour tips the economy to a crisis point.

He said there was a significant response from the CBN, but that they needed to continue to dispense more cash into the economy, to ensure that it gets to the nooks and crannies of the country.

The source said the CBN promised to ensure the availability of sufficient cash in the economy.

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

Ajaero at the meeting said it had to report back to the National Executive Council (NEC) of the Congress to give a fresh directive on what has been observed.

“Our members of NEC are from different states, so they will give their respective reports on what is going on in their states. So based on their experiences in their respective states, decisions will be taken, whether to go on strike or not to go on strike,” Ajaero said.

The NLC also directed workers to report banks not dispensing cash to the state councils.

The Guardian reported that the NLC had scheduled a meeting of its NEC today, to take a final decision concerning Wednesday’s planned nationwide strike.

The NLC gave the directive after its NEC meeting penultimate Friday, where affiliate unions and state councils were directed to monitor the cash situation and the progress banks were making in terms of cash disbursement.

It will be recalled that officials of the CBN met with the leaders of NLC last week to brief them on efforts by the apex bank to stabilise the cash situation across the country.

The CBN officials also told the NLC that about N20 billion was pushed out last weekend, with Lagos and Abuja getting N4 billion and N2 billion respectively in a bid to address the crunch.

The apex bank also directed that banks should work on Saturday and Sunday as well as extend their working hours to stabilise the situation.

Ajaero

Ajaero is expected to speak to the media today in Abuja, to unveil the next action of the organised labour movement amid speculation of a possible suspension of the planned industrial action.

A source told The Guardian in Abuja, last night, that though the NLC has activated its state councils as well as affiliates at its National Executive Council (NEC) last Friday, which was held via Zoom, there is still no decision on the actual date the protest will take place.

The source explained: “What we resolved to do at the Friday meeting is not anchored on an identifiable level of improvement. There was a team from the CBN that engaged the Centre on the issue. The team explained what the CBN is doing to ensure there is cash.

“They told us some of the challenges they are confronting in doing that. So, NLC can no longer declare the protest after being told all of these. I must say that the NLC is not interested in carrying out the protests for the sake of it. At the meeting, we did not state the level of improvement that must be made before we proceed or halt the process. So, we will examine the level of availability between today (yesterday) and tomorrow (Tuesday) before we make a decision.”

This comes as most banks confirmed receipt of cash while there were notable queues for cash at the ATMs. In Abuja city centre, most banks were dispensing cash over the counter.

A banker who spoke on the condition of anonymity said customers can now collect up to N200,000 over the counter while corporate bodies can access up to N500,000.

He added: “The CBN has directed that the suspended caps on withdrawals be removed. Now, corporate bodies can collect up to N500,000 while individuals can get up to N200,000 on the counter. We also have a reasonable amount of money to put into the ATMs. The pressure we had a few weeks ago has come down as you can see yourself.”