Fear of massive job losses in the new year (2016) is sweeping through workers in public and private sectors of Nigeria’s economy amidst the continued fall in the price of crude oil which has slid to $37.28 against the Federal Government’s projected $38 in the 2016 budget.
Nigeria’s economy receives almost 80 percent of her foreign exchange earnings from crude oil but the continued slide in oil prices at the international market is putting pressures on the critical sectors of the economy.

With manufacturing said to be in recession following two consecutive quarters of decline and other sectors finding it difficult to access foreign exchange, analysts say the future looks bleak for the economy this year, with the likelihood of job losses.
Besides, some analysts see a further slide in the price of oil, as Iran, the world’s fifth largest producer of crude is to begin supply in the first quarter of 2016 following the lifting of the ban placed on it by the United States of America and the European Union over perceived nuclear weapons infractions.

Many state governors have hinged the continued payment of the subsisting N18,000 minimum wage on cutting down the workforce in their respective states, arguing that the dwindling allocations to states from the federal account can no longer sustain the minimum wage which was signed into effect in 2011 by former President Goodluck Jonathan. This has heightened tensions in workplaces and in the labour market, with the organised labour becoming agitated and issuing warnings to resist any large scale job cuts by government and private employers.

Experts say the fall in crude oil price, along with stifling economic policies triggered a gale of retrenchment in virtually all sectors of the economy since the second quarter of 2015 and this will continue in 2016 as there are no indications of any immediate rebound in the economy.
In the last few months, over 120,000 jobs may have been lost in the oil and gas sector, while in the construction sector, close to 100 jobs are gone.

Solomon Ogunbusola, president of the Federation of Construction Industry, (FOCI), the umbrella body for major construction companies operating in Nigeria, recently lamented that the industry was at a crossroads. According to Ogunbusola, various construction firms in the country are owed over N600 billion for projects already executed, a development leading to massive lay off of workers.

Amechi Asugwuni, president of the National Union of Civil Engineering Construction, Furniture and Wood Workers, (NUCECFWW), also bemoaned massive job losses in the industry, describing it as worrisome. Asugwuni said since July 2015, close to 70,000 workers had been laid off by construction companies, and there is nothing to give hope of reprieve in 2016.

“This is very worrisome for an economy with a large population of youths,” he said.
BusinessDay gathered that the banking sector is planning to lay off staff through what an inside source called “appraisal”. Already, a number of staff had been given letters of termination in one of the banks where the Federal Government has a substantial interest, and their terminal benefits paid into their accounts.
The real subsector is likewise groaning under the yoke of harsh business climate.
Remi Bello, President, Lagos Chamber of Commerce and Industry (LCCI), said the Central Bank of Nigeria’s (CBN) foreign exchange policy restricting access to the dollar has taken a toll on members and resulted in the loss of about 40,000 jobs in the manufacturing sector.

Segun Oshinowo, director-general of the Nigeria Employers’ Consultative Association (NECA) in an interview with BusinessDay, warned that members of the association would be forced to lay off staff to survive, owing to the difficult operating environment and over-regulation by Federal Government agencies which impose crushing taxes and fines on enterprises.

Oshinowo pointed to other impediments such as cost of borrowing, poor infrastructure, absence of reliable power and multiple taxation, which he described as a huge burden for employers. NECA members cut across all sectors of the economy. Disturbed by the trends, Bobboi Kagaima, president of the Trade Union Congress of Nigeria (TUC) who doubles as the president of the Association of Senior Civil Servants of Nigeria (ASCSN) has urged the Federal Government not to use the “proposed staff audit” as a ploy to sack workers.

http://businessdayonline.com/2016/01/fear-of-job-losses-as-fx-scarcity-persists-oil-prices-crash-further/ lalasticlala, dominique, Mynd44

Oil is not the only revenue we can trade for dollar

Buhari should entrench Fiscal federalism in order to encourage the states to exploit their resources to increase the inflow of dollars.

We shall overcome.

Oil is projected to stabilize at $45 to $50 in 2016, so there won't be much additional pressure on budget deficit.

Serious diversification of the economy towards agriculture and mining is the only permanent solution to the perrenial problems we have.

PassingShot:
We shall overcome.

Oil is projected to stabilize at $45 to $50 in 2016.

Still won't solve the nation's problem...like band aid on a festering gangrene sore!!

Mono export economy fa!!

The only way to solve Nigeria's problem is to have the capacity to produce What we need, start exporting some & stop depending on imports...

modath:


Still won't solve the nation's problem...like band aid on a festering gangrene sore!!

Mono export economy fa!!

The only way to solve Nigeria's problem is to have the capacity to produce What we need, start exporting some & stop depending on imports...

Of course oil shouldn't even have been our only major foreign earners.

My comment was in reference to additional pressure brought about by further decline in crude price.

EternalTruths:
Oil is not the only revenue we can trade for dollar

Buhari should entrench Fiscal federalism in order to encourage the states to exploit their resources to increase the inflow of dollars.

You're 100% correct and i support it. Oil isn't our only resource.

Olisa Agbakoba on Channels said as much yesterday. We can't have bitumen in large quantities in this country and be complaining of bad roads. It's a shame.

Oil has fallen and we must survive. There are many countries on earth living large without oil so enough of the oily excuses.

I expect a further cut on the expenditures of the presidency and the NASS.

State govts should be working with a 'worst case scenario' mentality. They don't need to be told to beef up IGR within their various states.

FG must of necessity speed up the diversification process. Agriculture is the way to go here. I really don't know why we import rice still; is our locally grown rice that bad in taste?

All these economic hardships we face at the present, clearly shows that we never envisaged a time like this. I certainly hope Nigeria does not belong to the comity of nations with NFA (no future ambitions)

PassingShot:
We shall overcome.

Oil is projected to stabilize at $45 to $50 in 2016, so there won't be much additional pressure on budget deficit.
.

This sounds too optimistic.

There's more supply in the market.

Activa:


This sounds too optimistic.

There's more supply in the market.

Experts analysis. Not mine.

Everything about this Government is a scam. The minister of finance seems to be inexperience, why should the government peg the benchmark at $38 pb? We are already running into deficit should the budget be passed without amendment.

PassingShot:

Experts analysis. Not mine.

Their analysis is not fail proof you know? We must work with a worst case scenario mentality whilst being optimistic for the expected rise in the price.

We have reached a point in this country where we need to start thinking outside the box. No more sitting down to enjoy free money from oil.
The government (federal and state) need to sit up.
It is very sad that we are always reactive instead of being proactive.

This could have been avoided if we had diversified the economy a long time ago.
How the hell did we think we would forever be sustained by oil?

Our eyes don dey clear now.

PassingShot:

Of course oil shouldn't even have been our only major foreign earners.

My comment was in reference to additional pressure brought about by further decline in crude price.

I get your point, something to buy tide the nation over...

We shall overcome, distractions from saboteurs & enemies of the state will not stop us from getting to the top.

ok

We are safe

CHANGE in Oil sector

God help Nigeria

May only those who voted for this scam called change be affected by the economic hardship Nigeria is about to face!
It's their fault.

This bubu is just a bad luck bringer.
So many negatives in the news.
Backward economic policies, thus leading to backward economy.


We need 'real change', not this one.

The lord is my shepherd

All iz well..naija will be great again. May we n our household not be affected in dis. Amen

I'm immune in Jesus name

This is not what is needed. I will prefer the oil dry up. Let the wanksters from the other side of the divide smell the coffee. Nigeria as an economy is run almost completely by oil proceeds.

Baba Bubu is hyper about something else. He is still believing that just "blocking the leakages" will make the revenue swell forgetting that even when you block the holes of a bucket that is constantly being bailed without a corresponding water running into it is equal to gworo foolishness raised to power Asorock

where those guys that said they perfer NEPA bill to academic certificate

2016 willl be tough.

Things will start looking up by next year 2017, if the budget is passed and the various projects are judiciously executed.

On a personal level- don't spend on girls like before
Before you go on a date ask her if she willing to split the bill

Save- cut down on buying for buying sake.

We might be entering a recession..government must give confidence to the citizens and the markets (formal market I mean)by giving out positive pronouncements not reminding us every time that things are tough. Nigerians are not idioots..we know things are tough.

In recession is also when some wise investor and investment pay off. The wise will understand. If you have saved cash and have assest: now is the time to put it to use.
Access soft loans from CBN if you have a good business proposal but its wiser to go as a group not individual. We still run business as one man idea. You cut down on risk more by spreading across: profit might also be less but still better than been jailed for defaulting on loans.

In recession, is time to look at acquiring other skills,-jobs like IT, energy provider(solar panels technician) medical and lecturing will always be in high demand.
Now is a perfect time to start a Church

Dont buy shares except for long term investment. Invest rather in treasury bill- the reward are not much but the risk is less.

No more COT on banks charges from January 1, which is good news.

If you transact in bulk- go to your banks and negotiate benefits. Squeeze them by the ball

Since CBN has proscribed COT. Banks are greedy, they will look for new ways to rip off customers.

ok

Em can someone kindly tell me how the crash of oil price will affect that danfo driver or that woman selling tomotoes in oshodi market or even that mechanic or that agbero collecting owo load ati owo booking in bus stops?