Nigeria, known for its lively culture, deep-rooted history, and plentiful resources, is often recognized as the powerhouse of Africa, a symbol of promise and possibility in the region. Yet, hidden behind its impressive exterior is a country grappling with a significant issue: the relentless rise in the cost of living. The growing crisis in Nigeria is not just about money anymore. It is now a serious threat to the country’s productivity, affecting the dreams of its hardworking people. With the increasing prices of basic needs like food, fuel, housing, and healthcare, Nigerian society is starting to fall apart, putting its diligent citizens at risk of financial instability.
Additionally, creating policies that reduce Inflation and promote a favourable business climate are crucial in cultivating a Culture of productivity and creativity. Over the past eight years, Nigeria has faced two recessions that have significantly impacted its economy. The decrease in economic activity has led to a decline in consumer purchasing power and pushed many people into poverty. These economic challenges have had a widespread effect on all levels of society, with the workforce being the most affected by the hardships.
The country is experiencing a decline in labour productivity.
Compared to other African countries such as Gabon, Botswana, and South Africa, Nigeria is experiencing a decline in labour productivity. This has resulted in a low GDP per hour worked of $7, reflecting the challenges faced by the economy. Labour Productivity is a critical indicator of economic well-being, and Nigeria is falling behind its peers in this aspect. Ogugua Belonwu, the respected creator and leader of MyJobMag, accurately depicts the harsh challenges confronting Nigerian workers. Rising expenses and unreliable Power Supply have emerged as significant barriers, draining the motivation and vigour of employees.
A considerable number are stuck in a damaging routine of managing numerous jobs just to stay afloat, ultimately impacting their productivity and performance. Femi Egbesola, the national president of the Association of Small Business Owners of Nigeria, expressed the frustrations felt by many Nigerian entrepreneurs facing difficult conditions in the business world. Issues like the removal of petrol Subsidies and problems with foreign exchange rates present obstacles that hinder creativity and development for small businesses.
Government must take action to revive the economy.
Temitope Omosuyi, a skilled Investment strategist at Afrinvest Limited, highlighted the various obstacles blocking productivity. Insufficient infrastructure, widespread Security issues, and unpredictable economic conditions all work together to lower employee motivation and performance, creating a continuous cycle of underachievement. The productivity landscape of Nigeria is depicted alarmingly in data from the Penn World Table. Nigeria ranks as one of the least productive countries in Africa, falling behind its counterparts in human capital development. This failure to fully utilize its workforce’s potential is a cause for concern.
More so, Nigeria’s economic struggles are causing a significant Brain Drain as many young, talented individuals are leaving the country in search of better opportunities abroad. This migration of skilled workers is worsening the shortage of labour within Nigeria and is having a ripple effect in other countries. The government must take action to revive the Economy by investing in infrastructure, education, and vocational training. It is crucial to tap into Nigeria’s workforce potential. Additionally, implementing policies to control inflation and create a favourable business environment are essential for promoting productivity and innovation.
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Nigerians’ ability to adapt and create solutions serves as a strong force against economic insecurity. This natural resilience has great potential, but can only thrive with proper support. Collaborative actions are required to remove obstacles hindering the progress of the Nigerian workforce. Nigeria has the opportunity to harness the capabilities of its people by prioritizing education, skills training, fostering Innovation and entrepreneurship, and addressing challenges such as Corruption and infrastructure. This will not only benefit its citizens but also position the nation as a leader in providing hope and opportunities for the entire continent.