As the nationwide industrial action called by the organised labour entered Day Five on Friday, IFEANYI ONUBA examines the impact on the economy

By all standards, the nationwide strike called by the organised labour to protest the removal of subsidy on petrol by the Federal Government has not only crippled the economy, it has also cost the nation huge financial losses.

Apart from crippling the economy, the industrial action, which entered its fifth day on Friday had led to the loss of several lives and property. According to investigations by our correspondent, the industrial action, had, for instance, cost the economy a whopping loss of about N158.93bn daily based on Gross Domestic Product estimate.

This gives a total of about N794.65bn for the five days of the strike.

For instance, majority of banks, petroleum stations, manufacturing companies and the nation’s airports, amongst others, are currently closed for businesses.

The N158.93bn was obtained based on the projected Gross Domestic Product for the 2012 fiscal year, which was contained in the national budget.

The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, had while appearing on a local television programme to shed more light on the economic benefits of the removal of petroleum subsidy, hinted that an analysis of the GDP would reveal the financial loss of the strike action to the economy.

Sanusi, who said the GDP, is one of the most acceptable ways of computing the economic loss, added that this could be obtained when the figure based on official working days was computed.

The apex bank boss, while appearing on the programme, with the Minister of Finance, Dr. Ngozi Okonjo-Iweala, however, did not give the actual financial loss.

A country’s GDP is a measure of economic activity that shows the productive capacity of all the sectors of the economy.

It is thus the value of all goods and services produced within the borders of that country over the given period.

President Goodluck Jonathan had on December 13, 2011presented the 2012 budget to a joint session of the National Assembly.

The N4.749tn fiscal document, which puts the estimated revenue at N3.644tn, leaves a deficit of N1.105tn indicating 2.77 per cent of the country’s Gross Domestic Product.

But an analysis of the budget, which was done by our correspondent, indicated that if the nation’s deficit of N1.105tn is 2.77 per cent of the country’s GDP, it therefore implies that the projected GDP in 2012 is N39.89tn.

There are 365 days in a year, made up of 251 working days, and 124 work-free days (52 Saturdays, 52 Sundays, and 10 public holidays).

The public holidays are New Years’ day (January 1); Id-el-Maulud (February 26); Good Friday (April 2); May Day (May 1); Id-el-Fitri (September 12); National Day (October 1), Id-el-Kabir (November 18); Christmas day (December 25) and Boxing Day (December 26).

The N158.93bn is arrived when the GDP figure of N39.89tn is divided by the 251 working days in the year.

The Statistician-General, National Bureau of Statistics, Dr. Yemi Kale, had in Abuja hinted that in arriving at the Nigeria’s GDP figure, data from 33 activities across three main sectors – agriculture, industry and services – were collected.

For instance, the NBS boss had while given out the GDP figure for the third quarter in 2011 said that in real terms, the country’s output grew by 7.4 per cent.

The third quarter 2011 GDP figure represents a decline of 0.46 per cent when compared to what was recorded in the corresponding period of 2010.

The fourth quarter GDP figure is currently being computed by the NBS.

Kale said, “In real terms, GDP in third quarter of 2011 grew by 7.40 per cent as against 7.86 per cent in the corresponding quarter of 2011.”

According to the bureau, the telecommunications sector in the third quarter contributes about 5.46 per cent to the country’s GDP; manufacturing, 3.51 per cent; building and construction, 1.61 per cent; hotel and restaurant, 0.50 per cent; and petroleum, 14.27 per cent. Others are real estate, 1.67 per cent; solid minerals, 0.4 per cent; finance and insurance, 2.98 per cent; agriculture, 43.64 per cent; wholesale and retail, 18.29 per cent; and others, 6.84 per cent.

Our correspondent, who monitored the activities of businesses in Abuja, observed a huge lull as most firms had their offices shut.

For instance, financial activities in Abuja were paralysed as majority of banks did not open for business as a result of the industrial action.

But a few others located at strategic areas such as the Federal Secretariat and close to the CBN were guarded by armed security personnel.

The banks visited by our correspondent are the United Bank for Africa Plc, Area 3; Unity Bank, Central Area; Zenith Bank Plc, Wuse; First Bank of Nigeria Plc, Central Area; First City Monument Bank Plc, Central Area; and Oceanic Bank Plc, Central Area.

Others are Intercontinental Bank Plc, Kubwa, Keystone Bank, Skye Bank Plc, Fidelity Bank Plc, Aso Savings and Loans Plc, and Hasal Microfinance Bank.

Some of them, which dared to open, incurred the wrath of officials from the National Union of Banks, Insurance and other Financial Institutions Employees, which had earlier endorsed the strike.

The NUBUFIE team, led by a man identified as Aliyu of the Trade Union Congress, made sure that all banks complied with the directive.

Source: Punch