By Victor AhiumaYoung

One of the highpoints of the 45th Annual General Meeting, AGM, of the Chemical and Non-Metallic Products Employers’ Federation, CANMPEF, in Lagos was its disclosure of the difficult decision to retrench workers in the financial year under review.   

Addressing members and guests at the AGM, CANMPEF President, Mr Devakumar Edwin, among others, informed that the sector passed through very difficult period during the last financial year, especially because of the Federal Government’s removal of Petrol subsidy in May 2023 and the floating of nation’s currency.

He said: “The Federal Government, through the Nigeria Electricity Regulatory Commission, NERC, announced a new tariff regime which is considered market reflective. According the National Bureau of Statistics, NBS, Fourth Quarter, Q4, Electricity Report 2023, DISCOs generated revenue grew by 26.96 per cent standing at N294.95 Billion in 2023 compared to N232.32 Billion recorded in 2022. As cost of energy rose, so did the number once thriving businesses ranging from tech startups to multinational giants existing the country increase.” 

According to him, “In August 2023, members of Labour Union marched across the country to protest of soaring cost of living with demand on the Government to improve social welfare interventions to reduce hardship and poverty. 

“Many businesses took difficult decisions to reduce production capacity, reduce shifts and lay-off some of its employees. According to the NBS, Nigeria’s unemployment rate increased from 4.1 perfect in Q1 2023 to 5.3 perfect in Q3 of 2023. 

“Insecurity continued to disrupt business operations, particularly in the Northern regions, forcing some manufacturers to scale back operations or close entirely.”

On his part, CANMPEF’s Executive Secretary, Olorunfemi Oke, among others, noted that “While 2023 presented significant challenges, it also unveiled opportunities for innovation and growth. As we navigate 2024, CANMPEF remains committed to advocating for policies that will enhance the competitiveness of our sector and contribute to Nigeria’s industrial development.

“In 2023, CANMPEF negotiated an end of service benefits and new collective bargaining agreement, CBA, with the National Union of Chemical Footwear Rubber Leather and Non-Metallic Product Employers. I would like to commend the National Union of Chemical Footwear Rubber Leather and Non-Metallic Product Employers, NUCRLANMPE, and Chemical and Non-Metallic Products Senior Staff Association of Nigeria, CANMPSSA, for their collaborations and partnership with the Federation in maintaining a harmonious industrial relation particularly during this challenging time.

“It is CANMPEF’s expectation that government will continue to provide the enabling environment for the private sector to thrive and continue to provide the much-needed employment that will migrate majority of the citizens out of poverty and proceed to make meaningful contribution to the national gross domestic product, GDP.”