According to the National Bureau of Statistics (NBS), Nigeria’s Unemployment rate increased from 5% in the third quarter of 2023 to 5.3% in the first quarter of 2024. Since the fourth quarter of 2022, when it was likewise 5.3%, this rate is the highest. In 2023, the unemployment rate was 4.1% during the first quarter and went up to 4.2% during the second quarter. Nigeria still faces issues with food Inflation and overall economic hardship, which has led to the closure of numerous enterprises.
Approximately 8 million small businesses in Nigeria were forced to close between January 2023 and June 2024 as a result of the economic policies put in place by both the Buhari and Tinubu administrations. This information was disclosed in an interview by Mr. Femi Egbesola, the president of the Association of Small Business Owners of Nigeria (ASBON). He also talked about the terrible effects this has had on business owners, saying that some have passed away from financial strain and that others are in hospitals.
A number of policies were put in place to lessen the impact of job losses.
He demanded that a State of Emergency be declared by the government over the economy. Nigeria’s jobless rate rose slightly from 5% in the third quarter of 2023 to 5.3% in the first quarter of 2024, according to the National Bureau of Statistics (NBS). This is a component of a larger pattern that illustrates the nation’s ongoing economic difficulties. In comparison, South Africa has one of the highest unemployment rates in Africa—it will be over 32.6% in 2024—while Nigeria’s unemployment rate is still much lower.
Nevertheless, in 2023, the unemployment rates in nations like Ghana and Kenya were 6.5% and 4.9%, respectively. Nigeria’s unemployment rate is lower than that of South Africa, but it still indicates severe economic hardships, particularly considering the size and population of the country. The Nigerian government, led by President Bola Tinubu, has recognized the urgent economic problems in response to these obstacles. A number of policies were put in place to lessen the impact of job losses and company closures. In an effort to promote creativity and assist digital startups—which are viewed as a vital industry for employment creation—the government introduced the “Nigeria Startup Bill.”
8M small businesses in Nig. were forced to close due to high inflation.
Moreover, Tinubu’s administration has made measures related to subsidies; yet, these have generated Inflationary Pressures that impact day-to-day expenses, prompting many to doubt their efficacy in lowering unemployment briefly. According to economists, unemployment has a variety of underlying causes. A well-known economist from Nigeria named Dr. Bismarck Rewane blames structural problems including the nation’s reliance on oil and insufficient Economic Diversification for the increase in joblessness. “The structural unemployment problem won’t be solved by the government’s dependence on band-aid solutions, such as Tax incentives for companies or fuel subsidies. Agriculture, industry, and Technology are examples of industries that require long-term investment, the author of a recent report declared.
Furthermore, according to some analysts, small enterprises have been made even more difficult by depreciating currency, inadequate infrastructure, and frequent policy changes made by succeeding regimes. The severity of the problem was increased when Femi Egbesola, President of the Association of Small Business Owners of Nigeria (ASBON), disclosed that between January 2023 and June 2024, roughly 8 million small businesses in Nigeria—or 20% of the country’s total—were forced to close as a result of high inflation and difficult economic conditions. He made it clear that business owners are under a great deal of strain.
Related Article: NECA Cautions on Increased Business Closures
There are people who have lost everything. Some have fatal psychological effects as a result of being unable to fulfill their debt obligations. In an emotive recollection, Egbesola said, “I know of about three business owners in my community who committed suicide after closing down their shops.” The 5.3% unemployment rate in Nigeria causes serious difficulties for families that rely on a steady source of income for the ordinary citizen. A higher unemployment rate puts more pressure on social services, increases competition for the limited jobs available, and lowers household income. Given that the country’s youth population faces an unclear future, youth unemployment in particular continues to be a serious worry.