Chris Okpoko
At the 31st Nigerian Economic Summit (NES #31) held in Abuja recently, the Nigerian Economic Summit Group (NESG) warned that Nigeria must create at least 27 million new formal jobs by the year 2030, equivalent to 4.5 million jobs annually, to prevent unemployment from worsening as the nation’s working-age population expands to 168 million within the decade. This was contained in a new report by the NESG titled “From Hustle to Decent Work: Unlocking Jobs and Productivity for Economic Transformation in Nigeria.” The report called for an urgent and coordinated national response to tackle unemployment, raise productivity, and drive economic transformation. It warned that without decisive action, unemployment and underemployment could double by the end of the decade, trapping millions of Nigerians in low-skilled, low-paying, and vulnerable work.
In contemporary Nigeria, the alarming rates of unemployment and underemployment have fostered discussions around sustainable economic development. Economic growth alone is insufficient; it necessitates the generation of decent jobs that can lift the populace out of poverty. Unemployment has led to rising discontent, social unrest, and crime, highlighting an urgent need for effective government intervention. This essay examines the critical role of the Nigerian government in driving employment, particularly amid escalating unemployment crises, by evaluating its policies, initiatives, and strategies aimed at generating decent jobs at scale.
Nigeria’s unemployment rate was 4.3% in the second quarter of 2024, according to the National Bureau of Statistics (NBS). This figure marks a decrease from the previous quarter and is based on a new calculation method. However, disparities exist, with the rate being higher for women (6.2%), those in urban areas (6.0%), and youth (8.4%). This number can be misleading, as other indicators such as youth unemployment and underemployment reveal significant challenges. The underemployment rate (people working but in jobs below their skill level) was also high, with the Q1 2024 rate at 10.6%. Informal employment dominates, accounting for about 93% of the labour force.
The unemployment in Nigeria is daunting. Under the former method, according to the NBS, as of the last quarter of 2021, Nigeria’s unemployment rate stood at approximately 33.3%, the highest in the country’s history. This figure represents millions of Nigerians who are unable to secure stable and meaningful employment. Coupled with a burgeoning population, which is expected to reach 400 million by 2050 (Statista), the challenge of providing adequate job opportunities becomes even more pressing. If current trends continue, the economic prospects for the youth (who make up about 60% of the population) appear bleak. Thus, the government’s role in spearheading initiatives that create decent jobs cannot be overstated.
The key to addressing unemployment is robust economic policy formulation. The Nigerian government must prioritize policies that promote job creation across various sectors. This includes investing in industries with high potential for job generation, such as agriculture, manufacturing, and technology. Agriculture remains a primary source of livelihood for many Nigerians, yet inefficiencies and inadequate infrastructure burden the sector. By investing in modern agricultural practices and ensuring access to markets, the government can facilitate job creation in rural areas while enhancing food security. Additionally, reforms in the manufacturing sector, including incentives for local production and import substitution policies, can stimulate job growth and reduce dependence on foreign goods.
Furthermore, the Nigerian government must embrace the potential of digital transformation in driving employment. The rise of technology has created new paradigms in job creation, allowing for innovative approaches that engage the youth. The promotion of entrepreneurship, particularly within the tech space, presents an immense opportunity. Government-backed initiatives such as incubators, accelerators, and funding programs can provide aspiring entrepreneurs with the necessary resources to establish and grow their businesses. Moreover, expanding access to the internet and technology training can empower Nigerians, enhancing their employability and enabling them to thrive in a rapidly evolving job market.
Another crucial aspect of the government’s role in driving employment is education and skills development. Nigeria’s educational system must adapt to meet the demands of a changing economy. A mismatch exists between graduates’ skills and the job market’s requirements, leading to high rates of graduate unemployment. Therefore, aligning educational curricula with industry needs is paramount. The government should collaborate with the private sector to design vocational training programs that equip individuals with practical skills. Implementing partnerships between universities and industries could facilitate internships and apprenticeships, allowing students to gain real-world experience while concurrently mitigating the gap between education and employment.
Moreover, social protection programs can serve as a vital tool in supporting those navigating the challenges of unemployment. Through initiatives like the National Social Investment Program (NSIP), the government can offer direct financial assistance to vulnerable populations while also promoting skills acquisition and entrepreneurship. Creating a safety net can ease the transition for individuals seeking new job opportunities, thereby encouraging them to pursue further education or training without the burden of absolute financial insecurity. Observing successful examples from other countries reveals that combining direct support with skills development creates a more resilient workforce capable of adapting to changing economic conditions.
In addition to creating jobs directly, the government can foster an enabling environment for private sector growth, which is crucial for job creation. Encouraging foreign direct investment (FDI) through favorable policies and regulatory frameworks can lead to increased employment opportunities. Streamlining business registration processes, ensuring the protection of investor rights, and combating corruption are essential steps toward making Nigeria an attractive destination for investors. Furthermore, supporting small and medium-sized enterprises (SMEs) is vital, as they represent a significant portion of the job market. Initiatives that provide access to credit, mentorship, and business development services can empower SMEs to expand their operations, subsequently generating more jobs.
As the Nigerian government embarks on these initiatives, it is imperative to measure the impact of its policies in driving employment. Establishing a framework for monitoring and evaluating job creation strategies ensures accountability and allows for real-time adjustments based on observed outcomes. Engaging stakeholders—including businesses, civil society, and labour unions—can enhance transparency and collaborative efforts in addressing unemployment. Such multi-stakeholder accountability fosters trust and encourages collective ownership of employment challenges.
The fight against unemployment also requires a comprehensive approach that addresses systemic issues such as corruption, poor infrastructure, and insecurity. Corruption hampers economic development and deters investment, stifling job creation. Strengthening institutions and implementing anti-corruption measures will cultivate a favourable environment for economic growth. Similarly, enhancing infrastructure, particularly in transport and energy, is critical for facilitating business operations and attracting investments. Insecurity, often linked to youth unemployment, must also be addressed through job creation. A focus on economic empowerment can reduce vulnerability, contributing to peace and stability.
However, the role of the Nigerian government in driving employment does not rest solely on large-scale initiatives. Localized efforts that engage communities in decision-making processes can yield substantial results. Encouraging local governments to develop tailored employment strategies based on the specific needs and resources of their regions can enhance effectiveness. Empowering communities to take charge of job creation will not only ensure that initiatives are contextually relevant but also foster a sense of ownership and responsibility towards economic development.
In conclusion, the Nigerian government plays an indispensable role in driving employment amidst escalating unemployment crises. By prioritizing policies that promote job creation, investing in education and skills development, fostering an enabling environment for private sector growth, and strengthening social protection programs, the government can catalyze meaningful change. As Nigeria stands at this critical juncture, it must leverage the potential of its youthful population by transforming challenges into opportunities for decent jobs at scale. The journey towards reducing unemployment requires concerted efforts and innovative solutions; the time to act is now.