Nigeria’s Unemployment situation has reached an alarming rate, affecting almost all aspects of the country’s Economy and social structure, necessitating swift and robust intervention. Millions of Nigerians, especially young people, face a dire future in the labour market with the country’s unemployment rate estimated at 33.3% by the National Bureau of Statistics (NBS). Along with high rates of unemployment, the nation also faces underemployment, with a rate of 22.8%, which forces many people to work below their ability and struggle to make ends meet. Economists and labour experts contended that the joblessness situation in Nigeria necessitates both short-term and long-term remedy.
Dr. Muda Yusuf, a former director-general of the Lagos Chamber of Commerce and Industry (LCCI), believes that boosting the Manufacturing sector and fostering industrialization are important ways to address the problem. He maintains that Nigeria’s economy has to be more diversified in order to move away from its reliance on oil. Millions of jobs can potentially be created by investing in sectors like manufacturing, technology, and agriculture. On his part, the CEO of Financial Derivatives, Dr. Bismarck Rewane, highlights the necessity of improving Nigeria’s Educational System in order to better meet the demands of the labour market.
Acquiring digital skills is a promising strategy.
He pointed out that a significant number of Nigerian graduates are devoid of the employability-driven practical skills, which exacerbates youth unemployment. Youth unemployment can be considerably reduced through partnerships with Private Sector entities, apprenticeship programs, and vocational training. Furthermore, encouraging entrepreneurship and small enterprises is one of the most promising strategies to combat joblessness in Nigeria. Encouraging people to establish their own businesses and providing mentorship and training can provide potential entrepreneurs with the tools they need to be successful, thereby increasing job prospects.
Moreover, Nigeria’s labour market is under extreme strain due to the country’s population expansion as the government is finding it difficult to produce enough jobs to keep up with demand. Experts encouraged Nigerians to concentrate on acquiring digital skills in order to seize global opportunities and lower the country’s unemployment rate. With the growth of technology-driven sectors, digital skills like software development, coding, data analytics, and digital marketing have given rise to remote work, freelance work, and international entrepreneurship. By gaining these skills, individuals can explore the global gig economy where there is a great need for tech talent.
Combating unemployment necessitates a multifaceted approach.
Like Rwanda and Kenya, Nigeria could gain from increasing funding for programs that develop digital skills and broadening access to tech education. The Nigerian government has undertaken a number of programs over the years to combat unemployment, especially among young people. One of such initiatives is offering loans and grants to entrepreneurs. The government has also given priority to the N-Power Program, Digital Skill Development Programs, the Skill Up Artisans (SUPA) initiative, which aims to train and empower about 20 million artisans over the next four years, and the Youth Empowerment Program (YEP), which aims to reduce youth joblessness by providing Vocational Training and entrepreneurship development programs.
Despite these initiatives, many experts contend that, despite their advantages, these programs fall short of resolving the fundamental structural problems driving joblessness. While these initiatives have had some impact, there is still a significant problem with joblessness in Nigeria, where millions of people are finding it difficult to secure steady employment. Moving forward, combating unemployment will necessitate multifaceted approaches that concentrate on encouraging entrepreneurship, enhancing infrastructure, and fostering an atmosphere that is favorable to enterprises. A key aspect to maximizing Nigeria’s potential for job creation is to promote foreign Investment in industries like Technology and agriculture, improve vocational training, and expand SMEs’ and startups’ access to financing.
Related Article: Tinubu to launch LEEP to fight unemployment
Experts advise the government to reduce red tape and make sure that regulations are uniform in order to promote investments that have the potential to create significant jobs. This will also help to improve the ease of doing business. Although government programs have made headway, a larger-scale solution will require a coordinated effort between the public and private sectors. Nigeria can lead the way in creating sustainable jobs and fostering an inclusive economy by emphasizing industrialization, vocational training, entrepreneurship, and gender parity in the labour market.