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EXAMINING THE ECONOMIC IMPLICATIONS OF ASUU STRIKE

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By B. Nnanna Otu (Lagos Bureau Chief)

Universities and related citadels of human capital development are an integral part of the society where they exist and they play crucial roles in the socio-economic dynamics of their host communities and the nation at large. Universities as centers for advanced learning and research the world over, are considered top-notch change agents on all aspects of the life and well-being of their host communities; fruits of their research are commercialized and made available to the wider society.

In addition Universities by their sheer size and human population concentration in their location create huge value chains in several aspects of pecuniary, economic and social activities. Private sector Estate Developers build and rent Hostel accommodations for students, private Caterers establish and run restaurants for students and workers, transporters provide Bus shuttles services for students and workers, Business Centers/Internet Café operators provide their services for the academic community, Bookshops and Vendors of Research Journals and materials have the Universities as their natural habitat etc. Indeed, the University environment remains a convergence point for sundry economic activities.

Since the return to democracy in 1999, ASUU has had one reason or the other to go on strike. Such strikes have lasted for weeks or months. Some of the major reasons have been issues of funding, the revitalization of Nigerian public Universities and designated earned allowances. These issues have remained a recurring decimal in most of ASUU’s strikes. The present Strike that was graciously suspended yesterday began exactly one year and one month after the same ASUU ended a nine-month strike over similar financial and members benefit concerns.

Each time ASUU goes on Strike and public Universities come under lock and key, the first casualties are usually the downstream value chains that instantly collapse, leaving their proprietors sulking and quietly counting their daily losses. The micro-economic implications of this could be horrendous, awful and dreadful. Take a look

The Estate Developer that owns Hostels picks no rents for the period of the Strike.

The Private Caterer closes shop.

The Hair Dresser goes on impromptu sabbatical.

The Bus Shuttle Transport provider bemoans his fate.

The Bookshop operator and Research Material Vendor instantly becomes stranded

The Business Center operator/Internet Services provider begins to worry on how to pay his office space rent when due.

ASUU PRESIDENT

The Course Rep who usually acts as the go-between in the sale of Lecturers’ Handouts and make his own margins becomes furious and decides to join other youths in the rave of the moment.

To the wider society, here are some likely silent macro-economic impacts of the suspended ASUU strike:

Incompetent Future labour force

Students less well to do homes are the ones most likely to feel the impact of the ASUU strike more. The children of the wealthy in Nigeria attend private schools, and some even fly abroad to complete their degrees, whereas the commoners are forced to send their children to public schools. The overall effect of this could be debilitating on the psychic of the affected students, as some students may even lose the knowledge already acquired while classes were in session. On account to this, some students may start pursuing certificates rather than knowledge, a precursor to a drop in the standard and quality of the future workforce and a concomitant drop in productivity.

Payment for Periods When Services Were Not Rendered

Incessant long strikes in a sector where the Labour mantra of “No Work No Pay” cannot be enforced could lead to the States and Federal Governments losing billions of hard earned revenue in paying academics for services not provided after the strike and the cost of maintaining unutilized University properties/assets like cars and generators during a protracted strike by University lecturers.

President Buhari

Threat to youths Future Job prospects

Strike related delays in the schooling years pose a threat to Nigerian youths’ employment prospects as they must overcome age restrictions while seeking job opportunities in several industries, inclusive of the Banking sector. Their peers who attended private institutions graduate on time, serve in the National Youth Service, and now hold well-paying jobs in respected companies, students of public Universities run the risk of not doing so because of age restrictions.

Increased financial burden on families

Strikes make things more difficult for both parents and students as resources bought for the semester will be wasted while on strike. After the strike, parents will have to raise money to buy such items once again.  Students who have parents who are unable to pay for such necessities during resumption suffer throughout the remainder of the semester.

Increased insecurity

The popular maxim “an idle hand is the devil’s workshop” is an apt example of how society suffers the most from strikes. Though not backed by studies, but it is believed that during protracted strikes, crime rates in society take an upward swing. Some students turn to hazardous social vices such as armed robbery, oil bunkering, prostitution, online fraud, pool betting, etc. to engage their bustling energies.

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