Mass Job Losses Loom In Q1 2023 Amid Naira Crisis - Manufacturers, Economist

A recent report by the Manufacturers Association of Nigeria, MAN has predicted imminent mass job losses in the first quarter of 2023 amid the currency crisis.
The Confidence Index Report by MAN indicated that the employment rate would dip below benchmark points to 48.8 points in the first quarter of 2023.

The new figures also represent a downward spiral from the 49.2 points obtained in the preceding quarter.

“Among the standard diffusion factors, current business conditions and business conditions for the next three months scored above 50 benchmarks while increasing in the quarter. Current Employment Condition (rate of employment) and production level in the next three months scored above the 50 benchmark points, though with a decline in the period.

“Employment conditions for the next three months dipped below the benchmark points to 48.8 points which are also below 49.2 points obtained in the preceding quarter.”

Now an economic expert believes the recent Confidence Index Report by MAN may not be unconnected with the controversy and hardship generated by the Central Bank of Nigeria’s currency redesign and swap process.

Dr Ayo Teriba, the CEO of Economic Associates, EA, explains that the challenges following the Naira swap will not only lead to job losses but a decline in Nigeria’s Gross Domestic Product, GDP.

He explains that the cash crunch Nigerians battle with would affect businesses as they will sell less than they ought to because of the difficulties in getting cash and patronage.
For over three weeks, Nigerians have continued to lament the non-availability of the naira, a situation that has resulted in bloody protests in Edo, Delta, Lagos, Kwara, Ondo and other parts of the country.

“You don’t have to wait for MAN; the disorderly way with which the Central Bank of Nigeria has gone about the naira redesign will not just lead to job losses but will also lead to a decline in Gross Domestic Product and GDP.

“Nigeria is an N200 trillion economy; let’s say we generated N50 trillion per quarter. Because people can not get money from banks and ATMs, businesses will sell less than they ought to because of the difficulties in getting cash, the economy cannot grow, and job losses will come”, he stated.