FG, states should revamp job creation schemes

TWO new reports on the rising number of jobless Nigerian youths reveal that unemployment has reached epidemic proportions. One report that over 65 per cent of youths are unemployed, and another by the World Bank that 80 million more Nigerians risk job losses should jolt the federal and state governments to take urgent and drastic measures to prevent a social crisis.

Jobberman, a Lagos-based job portal and career platform, revealed that one in every five unemployed youth has been without work for more than five years, and more than 50 per cent of Nigerian youths are both unemployed and unemployable. The African Development Bank had also described the unemployment situation in the country as not only frightening, but also catastrophic.

Wading in, the World Bank warned that 80 million working-age Nigerians will not have a full-time job by 2030 unless the country improved its employment rate. In its report, Nigeria Development Update: Nigeria’s Choice, the global lender said apart from 23 million more persons joining the extreme poverty group, the 3.5 million new entrants into the labour market annually “cannot be absorbed by a public sector-led economy.”

Jobberman’s research shows that only 17 per cent of Nigerians have wage-earning jobs with the potential to lift them out of poverty. It therefore recommended urgent intervention, including region-specific solutions for public and private sector players, as well as development partners.

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Indeed, the new reports reinforce the alarm raised over the years by the National Bureau of Statistics, which has been tracking the job and poverty crises in the country. Years of economic mismanagement and absence of positive policy direction by successive administrations have driven the economy to the precipice. The overall unemployment rate has reached 23.63 per cent and underemployment 16.6, climbing up to 33.5 per cent or over 23 million people in 2020.

Youth unemployment and underemployment are 55.4 per cent, says the NBS. When broken down, the data reveals a higher unemployment rate among people aged 15-24 and above. Majority of members of the most vibrant segment of the population are thus locked out of the productive economy. This inhibits productivity and entrenches poverty. In 2022, the unemployment rate is estimated to reach 33 per cent, says Statista. Chronological data show that the unemployment rate has been rising in Nigeria in recent years.

Youth unemployment is a global problem. The International Labour Organisation estimates the number of jobless youths (aged 15-24) worldwide at 73 million this year, down from 75 million in 2021. Governments everywhere adopt policies to provide the youth with job opportunities. In Nigeria, though job creation is often discussed, instead of progress, the problem has been getting worse.

Successive governments have failed to devise programmes that could create jobs and reduce poverty. Poverty, crime, violent conflict, and other related social problems in the country are derivatives of unemployment. Governments at all levels must tackle the situation before it spirals out of control.

United Nations projections for 2020 showed that about 43 per cent of Nigeria’s population comprised children of 14 years and below; 19 per cent aged 15 to 24 years; about 62 per cent are below the age of 25 years. By contrast, less than five per cent is aged 60 years and above. This makes Nigeria a youthful population with a median age of about 18 years. This is lower than African and world averages of 20 and 29, respectively.

The productive sectors that could absorb the army of employed youths are struggling to survive. Agriculture, mining, and manufacturing are typically high job-creating sectors but suffer from the prevailing adverse operating environment. There is also the energy crisis, featuring high diesel, power, and lubricant costs.

The pledge by the President, Major General Muhammadu Buhari (retd.), to lift 100 million Nigerians from poverty is not backed by effective policies. The UN adopted youth employment as a Sustainable Development Goal, and in collaboration with the ILO, recommends three broad-based approaches by countries to achieve this. These are assigning utmost priority to job-creation policies, targeting specific disadvantages of young people through skills and labour market policies, and forging partnerships with international organisations, the private sector, governments, and workers to stimulate job creation.

Buhari can create jobs by the simple expedience of privatisation and liberalising the railway, ports, airports and downstream oil and gas sectors. This will draw in massive private sector participation and investment, create thousands of jobs and engender economic prosperity. There should be efficient policies to attract foreign direct investment and domestic investors to all sectors, including infrastructure provision. The key is to stimulate agriculture, mining, and manufacturing. SMEs constitute the pathway to massive job creation, innovation, and exports. More effective measures should be taken to stimulate that sector.

Poverty and unemployment thrive in Nigeria because the states do not have robust economic plans targeted at attracting investment, creating jobs, promoting production and exports. They should start doing so immediately. State and local governments should accord priority to rural development and provision of basic amenities.

Interventions focusing on building skill sets and professional competencies are required. This calls for critical stakeholder participation, particularly from employers, industry associations, managers of the economy, non-governmental agencies, and donors. Interventions such as graduate internships, graduate training, and boot camps are hands-on approaches that can mitigate the situation.

Urgently, the federal and state governments need to create a favourable environment for businesses to thrive and for job creation. The insecurity in the country that has disrupted farming, transportation and commerce should be eliminated. And without solving the power crisis, all efforts to revive the economy will falter or at best achieve minimal results. Technology, sports, entertainment, and hospitality are goldmines which the government can exploit to the fullest.

Political will and commitment are crucial. Without a national drive to address unemployment, Nigeria may continue to breed an army of youths who may pose a security threat not only to the country, but also the entire West African sub-region in the near future.