A detailed report released last week by the National Bureau of Statistics [NBS] shows that the number of unemployed Nigerians rose from 17.6 million in the fourth quarter (Q4) of 2017 to 20.9 million in Q3 of 2018. This represents a rise from 18.8 per cent in Q4 of 2017 to 23.1 percent in Q3 of 2018. The report said persons classified as unemployed are those who did nothing at all or worked under 20 hours a week. It said out of the 20.9 million unemployed people, 11.1 million people worked for less than 20 hours a week while 9.7 million absolutely did nothing.
NBS said out of 9.7 million unemployed who did nothing in Q3 2018, 8.77 million or 90.1 percent were first-time job seekers. Similarly, 0.93 million or 0.9 percent were persons previously employed. The report said Nigeria’s working age population; people aged 15 to 64 years, increased from 111.1 million in Q4 of 2017 to 115.5 million in Q3 of 2018. It said total number of employed people increased from 68.4 million in Q3 of 2015 to 68.72 million in Q3 of 2016; to 69.09 million in Q3 of 2017 and to 69.54 million in Q3 of 2018.
In Q3 of this year, 23.9% of rural and 21.2% of urban dwellers was unemployed. The report said as at Q3 of 2018, 22.8% of rural residents were underemployed compared to 13.7% of urban residents within the same period. So, while there was a decline in urban unemployment compared to the same period of 2017, there was an increase in rural unemployment compared to Q3 of last year.
While there was an increase in the unemployment rate for young people from 13.7% in the Q3 of 2015 to 19.1% in the Q3 of 2016; and to 25.5% in Q3 of 2017; it declined to 29.7% in Q3 of 2018 from 30.50 percent in Q2. The report added that “under unemployment within the youth population during the same quarter declined from 27.2 percent in the Q3 of 2017 to 25.7 percent in the Q3 of 2018.”
Head, Department of Finance of Nasarawa State University Prof. Uche Uwaleke said the growing unemployment figure was a confirmation that growth in the economy was still weak and not inclusive, saying, “The chief driver, the oil sector, is not employment elastic.” He urged government to invest in entrepreneurial education and skills acquisition for high to lower unemployment. Former DG of the Abuja Chamber of Commerce and Industry Chijioke Ekechukwu said unemployment rate was due to rise because of retrenchment and rationalisation of workers in the capital market, banking, oil and telecom sectors. He also said, “Lack of access to loanable funds has remained a bane in the growth and development of entrepreneurial endeavours.”
NBS’ employment figures together with its analytical details are commendable. Although the Buhari Administration’s Economic Recovery and Growth Plan [ERPG] 2017-2020 hinges on policies aimed at boosting the economy and creating employment, NBS’ report clearly indicates that ERGP is not yielding the expected results. It is not encouraging that Nigeria’s oil-based economy has not yet been sufficiently diversified to create employment opportunities large enough to reduce unemployment. The mining sector, for example, is yet to be adequately explored. There is also an imbalance in the public and private sector participation in some sectors including solid minerals. Even the revitalized agricultural sector requires more support. Lack of basic entrepreneur proficiencies such as funds and human resource management skills are also factors that contribute to the growing number of the unemployed.
In order to change the current tide of unemployment, ERPG in its entirety including its targets, action plans, macro and micro economic frameworks, fiscal and monetary policies including interest rate on credits, investment strategies, the real sector, job creation, youth empowerment, population growth management and governance issues should all be re-examined in order to make the program more attuned to realities. DAILY TRUST
Pix: Nigeria President, Mohammadu Buhari
