TUC Urges FG to Move Naira to N700 to N800 per Dollar to Cut Fuel Price

The Trade Union Congress (TUC) has asked the federal government to strengthen the naira to between N700 and N800 to one US dollar, arguing that the exchange rate is central to rising costs of goods, including petrol pump price. TUC President Comrade Festus Osifo made the call at a press conference after the union's National Administrative Council meeting in Abuja on Wednesday.

He said the official rate is just above N1,300 to the dollar but insisted the naira remains undervalued. "Today, the official rate is just a little above 1,300 Naira to the USD, but we see that government can still do better," Osifo said. He praised Central Bank Governor Cardoso for his work but added: "We still believe that 1300 Naira to $1 is still undervalued."

Exchange rate is central

Osifo said the TUC presented a 15-point demand to the federal government in 2024 with the exchange rate at its centre. He said the union cannot stop talking about the exchange rate because it is central to literally everything. He noted that the naira was overvalued when it traded around N400 to the dollar but said that at N1,300 it is still undervalued.

He said international commentators, local and international economic think-tanks and scholars agree the naira is not trading at the strength it should. "Government should do everything possible to move the Naira to the right value," he said. He said macro-economic indicators were picking up, with inflation gaining some stability and the exchange rate strengthening, but government could do better on microeconomics.

Security and workers' demands

The TUC also asked the federal government to deal decisively with insecurity. Osifo commiserated with families of security personnel who died in recent incidents. He recalled that a pilot involved in the Ondo State military jet crash had just got married weeks ago.

He urged government to provide security agencies with needed funds and equipment to fight terrorists and bandits, saying there can be no economic progress without a stable country. He condemned the incident in Niger State that led to the death of about 37 persons in the custody of the Nigeria Security and Civil Defence Corps, calling it an aberration. He said whoever is culpable, no matter how highly placed, must be decisively dealt with according to the letters and spirit of the law.

Minimum wage and health sector

On workers' pay, TUC said it expects federal and state governments to begin minimum wage talks latest by February, six months to the expiration of the current Minimum Wage Act. It urged government to engage workers on negotiation for appropriate increase in allowances and wage award in the interim. The congress expressed support for the warning strike by the Joint National Council of Federal Workers and said it will join in escalating the action if government fails to resolve the issues.

On the health sector dispute involving the Joint Health Sector Unions, Osifo said the union resolved to send a letter to the Coordinating Minister of Health and Social Welfare to hasten action on workers' demands.

For the naira, the TUC's call adds to pressure on the CBN and federal government to push the currency closer to the union's preferred range, even as the official rate remains above N1,300 to the dollar.