Naira Scarcity: NLC Calls Off Planned Nationwide Strike

The Nigeria Labour Congress (NLC) suspended its plan to carry out a nationwide strike over cash shortage in the market after the government implemented a new currency redesign policy.

Minister of Labor and Employment Chris Ngige confirmed the suspension of the indefinite strike Tuesday following the meeting held at the 68th session of the State House Ministerial Briefing in Abuja.

"There's already a dialogue going on and there's also implementation and the Nigerian Labour Congress agreed that there was some thawing at the surface of the icing that was there," Ngige said, Punch reported.

The protest was scheduled to start Wednesday outside all Central Bank of Nigeria (CBN) branches in the country.

Ngige added that NLC will call up their National Executive Council meeting to discuss the negotiations because the "initial decision to give that ultimatum was given by the same Council."

"Members of the Council reside in the states and in the local governments so they will review the situation because much as it is, the important thing is that we have emphasized to them that we have apprehended this dispute," the 70-year-old minister said.

He also explained under the "section 7:8 of Trade Dispute Act, once the Minister apprehends and starts conciliation on it, you maintain status quo ante bellum," noting that NLC is reviewing the policy.

As long as the protest is concerned, the minister affirmed that the issue of discussion has shifted from the strike to welfare of Nigerian workers.

"But for now, the issue of discussion is no longer strike, the issue of discussion is implementation and how far it's gone and how far it affects Nigerian workers and the general population," Ngige concluded.

Demonetization has mopped over 70% of liquid money in the country, leaving citizens in a massive cash crunch. The government implemented a new currency redesign policy for three denominations out of eight including N200, N500 and N1000.

Other banknotes including N10, N20, N50 and N100 will not be redesigned under the new policy.

It was first announced that old banknotes will be acceptable till Jan. 31. However, the Supreme Court ruled that these old banknotes can be used until the end of this year as there are insufficient new notes released in the market.

After many market operators didn't accept the old notes, the Central Bank of Nigeria (CBN) asked all commercial banks to operate on Saturdays and Sundays as well to reduce the ongoing cash crunch in the country.

In addition, commercial banks are highly likely to increase the cash withdrawal limit to reduce long queues outside financial institutions and ATMs.