The departure of quite a few multinational companies from the nation because of the difficult working setting has raised issues concerning the potential exacerbation of youth unemployment, HENRY FALAIYE writes
Nigeria, Africa’s most populous nation, boasts a youthful demographic, with almost 70 per cent of its inhabitants beneath the age of 30. This demographic benefit is usually seen as a possible driver of financial enlargement. Yet, the precise circumstances reveal a extra complicated and difficult actuality.
In current years, Nigeria’s financial indicators have prompt a cautiously optimistic outlook, with information indicating a drop within the unemployment price and fuelling discussions of financial progress.
However, a deeper investigation uncovers a troubling contradiction: a good portion of Nigerian youths stay unemployed, and lack requisite expertise.
This phenomenon, regardless of the reported fall in joblessness, is a trigger for deep concern, signalling a disaster that would have long-lasting results on the nation’s socio-economic cloth.
Despite current experiences indicating a decline within the nation’s unemployment price from 33.3 per cent in 2021 to 32.5 per cent in 2023, the variety of younger people who find themselves neither working, learning, nor present process coaching has continued to rise.
The Manufacturing Association of Nigeria reported that 767 manufacturing firms shut down and 335 skilled misery in 2023 resulting from varied financial difficulties, together with rising inflation, change price volatility, and a worsening funding local weather.
According to an economist and former Director of Research and Advocacy on the Lagos Chamber of Commerce and Industry in Nigeria, Dr Vincent Nwani, the exodus of multinationals from the Nigerian financial system has value the nation a N94tn lack of output in 5 years.
Nwani mentioned, “If things continue this way and I don’t see anything being done to cause insecurity to stop, illegal taxation, corruption, and uncertainty of foreign exchange rendering companies unable to hedge risk, then I see at least 10 more notable names (of multinationals) that will go. We already have five by the end of May.”
Meanwhile, the youth unemployment dilemma stems from a number of underlying points. Firstly, a reducing unemployment price doesn’t equate to a surge in job alternatives. Instead, it usually indicators a drop within the variety of people actively looking for employment, both due to discouragement or a transfer into casual, underpaid work that’s not captured by official statistics.
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The underemployment price, which measures folks working lower than 40 hours per week or in jobs under their talent stage, has remained excessive, indicating that many youths are caught in unstable employment that gives little safety or prospects for development.
According to the National Bureau of Statistics’ ‘Nigeria Labour Force Survey Q2 2023’, in Q2 2023, Nigeria’s labour power participation price among the many working-age inhabitants was 80.4 per cent, with an employment-to-population ratio of 77.1 per cent.
It talked about that the mixed price of unemployment and time-related underemployment stood at 15.5 per cent, whereas the unemployment price was 4.2 per cent, a slight enhance from 4.1 per cent in Q1 2023. Self-employment remained dominant, with 88.0 per cent of employees engaged in it, and solely 12 per cent had been in wage employment.
One of the first causes is the mismatch between the schooling system and the labour market. Many Nigerian youths graduate from secondary colleges and universities with {qualifications} that don’t align with the calls for of the fashionable financial system.
Also, the curriculum in lots of establishments is outdated, specializing in theoretical data slightly than sensible expertise which are in excessive demand. As a consequence, graduates usually discover themselves ill-equipped for obtainable jobs, resulting in frustration and a way of hopelessness.
Moreover, the excessive value of schooling in Nigeria is a big barrier for a lot of younger folks. The rising value of tuition, coupled with the financial hardships confronted by many households, implies that many youths are unable to afford increased schooling or vocational coaching.
The unemployment disaster is worsened by the shortage of job alternatives for younger folks. Although Nigeria’s financial system, is closely reliant on the oil sector, it gives restricted employment.
Other sectors like agriculture and manufacturing are underdeveloped, and the personal sector struggles with poor infrastructure and restricted credit score entry. As a consequence, many younger individuals are left with few viable choices for significant employment.
The lack of function and path can result in elevated involvement in legal actions, together with drug abuse, armed theft, and web fraud, that are already prevalent in some elements of the nation.
Moreover, the disillusionment and frustration amongst these youths can gasoline political instability and violence, as they grow to be straightforward targets for radicalisation and recruitment by extremist teams.
The phenomenon in Nigeria can also be gendered, with younger girls disproportionately affected. Cultural norms and gender biases usually restrict the alternatives obtainable to women and girls, notably in rural areas.
Also, many younger girls are compelled into early marriages or home tasks, which curtail their entry to schooling and employment.
Experts have warned that the results of the rising NEET (not in schooling, employment, or coaching) inhabitants are dire. Youths who should not engaged in productive actions usually tend to expertise poverty, social exclusion, and psychological well being points.
Speaking with The PUNCH, a human sources marketing consultant, Mr Tolu Adedayo, mentioned, “As the former President Buhari Muhammadu stated, Nigeria is sitting on a keg of gunpowder. We have a high level of unemployed youth coupled with a high inflation rate, especially food inflation. It is a big problem and we have not seen a definite plan from the government to roll out an employability plan so that these youths can be absorbed and given meaningful employment.”
He said that one of many cushioning results could be the leisure trade, which has engaged 1000’s of youths to maintain them busy and that spiritual organisations had been additionally offering a cushioning impact to cut back the spate of restiveness.
According to Adedayo, these should not fixing the unemployment problem, they’re simply cushioning their restiveness.
He defined that the macroeconomic issue relating to the variety of youths is a significant concern. “It is a red flag that, if not addressed, could lead to more serious consequences such as a high crime rate, fraud, and insecurity, among other things,” he said.
He famous that although the Federal Government was attempting to offer palliatives, they’d not go a good distance as a result of they had been only a momentary measure.
“Unfortunately, the palliatives should not even going round and even when they get to the appropriate folks, how lengthy will they final? Which shouldn’t be lifelike, sustainable and efficient contemplating the long-term impact.
“The government should just declare a state of emergency when it comes to unemployment so that all hands will be on deck. Many of our youths are quite enterprising, so the government can start supporting them with soft loans and grants to engage them and enable them to start something,” he posited.
He added that the federal government ought to roll out a complete employment plan or practice them with expertise acquisition, that are in demand proper now, like technical expertise and vocational expertise. A variety of graduates who’ve a fundamental basis would require a few of this coaching to upskill and be capable to get employed and generate revenue.
“Many of the training and courses received from schools are no longer relevant to what the job market demands right now. At the same time, the government must rejig and review our curriculum across the board, starting from primary schools to tertiary institutions and make it contemporary to meet global best practices because Nigeria is far behind looking at the community of nations,” Adedayo remarked.
Experts have additionally prompt that youths might be deployed to areas like sports activities, agriculture, and manufacturing, the place the nation has strengths to make them productive and contribute to the financial system.
The rising variety of Nigerian youths who should not in employment, schooling, or coaching is a ticking time bomb that requires pressing and complete motion. Addressing this disaster would require a multi-pronged strategy that entails authorities, the personal sector, civil society, and worldwide companions.
First and foremost, there’s a must reform the schooling system to make it extra related to the wants of the labour market. This consists of updating curricula, selling vocational and technical schooling, and fostering stronger hyperlinks between academic establishments and industries. By equipping younger folks with the talents required within the trendy financial system, they are going to be higher ready to safe respectable jobs and contribute meaningfully to society.
Furthermore, the federal government should prioritise job creation, notably in sectors which have the potential to soak up massive numbers of employees, akin to agriculture, manufacturing, and knowledge know-how. This would require funding in infrastructure, enhancing the convenience of doing enterprise, and offering incentives for personal sector development.
Additionally, increasing entry to schooling and coaching for all youths, no matter their socio-economic background, is essential. This may be achieved via insurance policies that scale back the price of schooling, present monetary support, and create extra alternatives for vocational coaching and apprenticeships.
More so, it’s important to handle the gender disparities that contribute to the NEET disaster. Empowering younger girls via schooling, expertise growth, and entry to financial alternatives won’t solely scale back the NEET price but in addition drive broader societal progress.
Also, HR Analyst Victor Oyesina, mentioned, “Nigeria must urgently address youth unemployment by revamping its education system to focus on practical skills that match market demands. The government should aggressively promote entrepreneurship by providing easier access to funding, reducing bureaucratic hurdles, and fostering innovation hubs across the country.”
According to Oyesina, large funding in digital infrastructure and technology-driven industries is important to creating sustainable, high-impact jobs.
Meanwhile, he defined that establishing sturdy partnerships between the federal government, personal sector, and worldwide organisations may assist scale up efforts and make sure the long-term success of these initiatives, offering a transparent pathway to financial stability for the nation’s youth.
He asserted that tackling corruption and making a business-friendly setting would appeal to important funding, driving large-scale job creation for the youth.
“Tackling youth unemployment in Nigeria also demands implementing extensive public works and infrastructure projects that can quickly employ a large number of young people,” he added.
However, Oyesina talked about that the rising youth inhabitants in Nigeria, regardless of a falling unemployment price, is a transparent indication that the nation’s youth had been being left behind within the march towards financial growth.
“If left unaddressed, this disaster may have extreme penalties for Nigeria’s future, threatening social cohesion, financial development, and political stability.
“All stakeholders must come together to tackle this issue head-on, ensuring that every young Nigerian has the opportunity to build a better future for themselves and their country,” he emphasised.