- This is vital to national stability and economic resuscitation
The news that 3.67 million Nigerians became unemployed between October 2015 and September 2016 is a sober reminder that putting the citizenry to productive work is vital to sustainable economic transformation and growth.
The figures released by the National Bureau of Statistics (NBS) make for grim reading, and paint a depressing picture of a growing spectre of joblessness which has badly affected the country’s most vibrant demographic.
The total number of unemployed citizens rose from 7.51 million in October 2015 to 11.9 million in September 2016. Breakdown: 0.522 million lost jobs in the fourth quarter of 2015; 1.44 million were thrown into the labour market in the first quarter of 2016; 1.16 million became unemployed in the second quarter of 2016; 0.55 million became jobless in the third quarter of 2016.
Unemployment among Nigerians aged 15 to 24 years rose from 17.8 per cent in October 2015 to 25 per cent at the end of September 2016. Among the 25 to 34 age group, it increased from 10.8 per cent to 15 per cent during the same period. About 15.9 per cent of women and 12 per cent of men were unemployed as at September 2016. Joblessness in urban areas stood at 18.3 per cent; in the rural areas, it was 11.3 per cent.
There is little doubt that the sharp increase in unemployment is largely due to the ongoing economic recession. The economy contracted by 1.5 per cent in 2016. Inflation rose steeply to 18.7 per cent over 12 months. Falling oil prices have affected the exchange rate of the naira, causing it to plunge to N520 to U.S. $1 in February.
However, there are deeper underlying causes for the country’s jobs predicament. Even when the economy was growing at an average of seven per cent annually, it was essentially jobless growth, powered by an influx of foreign investment mainly targeting the then booming oil exploration sub-sector at the expense of small and medium-scale industry which are the biggest employers of labour. Then, as now, graduate unemployment was at crisis levels, and underemployment was the norm rather than the exception among the youth.
The Buhari administration must use the opportunity of the recession to implement structural reforms that will ensure maximum levels of employment as well as sustained economic growth. The recently-launched Economic Recovery and Growth Plan (ERGP) gives employment a significant amount of attention: job creation and youth empowerment are one of the plan’s key outcomes, and investing in people is a major strategic objective. The ERGP ultimately aims at creating 3.75 million jobs per annum between 2017 and 2020.
These laudable goals must be implemented competently and honestly if they are to succeed. The country must build on its agricultural base, which is still the biggest contributor to its Gross Domestic Product (GDP), as well as the largest employer of labour. Waste must be drastically reduced and agro-allied industry must get the priority it deserves.
Nigeria’s infrastructural deficit must be tackled comprehensively. The perennial problem of inadequate power supply in particular must be dealt with using innovative approaches, including the increased utilisation of renewable energy, the comprehensive decentralisation of power generation and distribution, and the enthronement of equitable billing practices. Roads, bridges and other transport links must be rehabilitated so that they no longer constitute a drag on trade and investment.
Public procurement procedures must favour indigenous suppliers. Infrastructure projects must utilise local expertise and labour. Timelines and deadlines for the execution of projects must be strictly adhered to. Incompetence must be sanctioned without fear or favour. Government should be wary of outside interference in its policies, no matter how well-meaning it may seem.
Nigeria has no choice but to ensure that the majority of its people are fully and gainfully employed. The consequences of failure are simply too bleak to contemplate.
