Are you concerned about the reason for the high rate of unemployment in Nigeria? Here’s why
The National Bureau of Statistics (NBS), said the rate of unemployment in Nigeria increased from 27.1 percent in December 2020 to 33.3 in March 2021.
Also, the number of unemployed Nigerians rose from 21.77 million to 23.19 million during the fourth quarter of 2020 ( October to December), that is a 6.5 percent rise.
The rate at which unemployment grew during the fourth quarter is as a result of the COVID-19 and the adverse effect it has on businesses and jobs all over the country.
Ever since the figures were released, several Nigerians have blamed the Buhari-led administration as one that has failed Nigerians, members of the Buhari administration however have openly rebuked the claim saying it was not the fault of the government.
But Expert explained the reason for the high rate of unemployment to Vanguard newspaper on Sunday.
According to David Adonri, Managing Director and CEO, Highcap Securities has said the socioeconomic conditions of the nation is what is responsible for the increasing rate of unemployment in Nigeria.
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“The increase in the unemployment rate of labour to 33% is not surprising. The prevalent socioeconomic conditions in the country are precursors to this parlours situation. If things continue the way they are, things can get worse.
“Nigeria degenerated to this level of unemployment owing to the absence of population control and excessive supply of unskilled labour As a result of population explosion due to lack of birth control and migration controls, the economy is overwhelmed with excess liquidity of people
“Then, concerning the demand for labour, the economy lacks the required capacity to generate productive employment that can consistently mop up labour.
“Due to the absence of engineering infrastructure, the economy is unable to sustain itself internally, thus exporting jobs through pervasive import dependence. Nigeria is an agrarian economy, but the recent breakdown of the rural economy due to widespread insecurity has worsened the country’s unemployment rate”.
Adonri then described the challenges to tackling unemployment rate in Nigeria as population control, absence of engineering infrastructure to support production and pervasive rural insecurity
He said the first two challenges are ‘age-long’ and the last one as assuming an ‘unprecedented dimension since 2015’.
“While the first two challenges are inimical to full employment of labour and capital, the third factor deals with the employment of land.
“They should start implementing policy on birth and migration controls to lay the foundation for labour optimization.They must start bridging the infrastructure deficit. This will mechanize the economy and enable it to become internally self-sustaining with a high multiplier effect. There should be no room for rural insecurity if agriculture which forms the natural base for employment is to be revived”.
According to him, the policies of the government concerning Tradermoni, meager cash transfer and temporary and short employment in the control are ‘laughable and a waste of resources’. Those policies will not generate productive employment that will sustain the nation.
