Nigeria and the challenge of a jobless growth

One major challenge that faces Nigeria’s economic managers is that of achieving a job generating growth instead of the ongoing jobless growth.

In its recently released report on job creation for Q2-Q4 in 2013, the  National Bureau of Statistics (NBS) revealed that Nigeria’s economy generated 222,163 jobs in the Q2 2013, 246,138 jobs in the Q3, and 267,740 jobs in the Q4 2013.

A breakdown of jobs created in the Q2 indicates that 80,412 jobs were created in the formal sector, 112, 567 jobs were generated in the informal sector, and 29,184 in the public sector. The formal sector contributed 76,385 jobs to the total jobs generated in the Q3 2013, while the informal and public sectors generated 140,673 and 29,080 jobs, respectively.

In the final quarter of 2013, of the total 267,740 jobs created, the formal sector contributed 101,597, while the informal and public sectors created 143,278 and 22,865 jobs, respectively.

This shows a total of 1,167,062 jobs for the full year 2013, made up of 432,720 jobs (0.37%) in the formal sector, 628,845 jobs (53.6%) in the informal sector, and 105,497 (9.4%) jobs in the public sector.

Education contributed the highest number of jobs created in Nigeria in the Q4 2013, with 1.36 million jobs, representing 48.92 percent of the 2.78 million total jobs created. This was followed by manufacturing with 0.4384 million, which is 15.77 percent of the total 2.78 million jobs created. The lowest sector was mining and quarrying with 0.135 million jobs (0.48%) of the 2.78 million total jobs created.

The Nigerian economy is experiencing growth with minimal job creation as the growth rate of the labour force exceeds the employment opportunities. Moreover, the large chunks of the unemployed are secondary school leavers and graduate of tertiary institution.

The NBS data show a need to accelerate reforms in areas that have the potential of creating lots of jobs.

Diversification of the economy through the agriculture sector, which is the largest employer of labour will improve the economy and lives and incomes of the millions of farmers residing in the countryside.Stability in the power sector will enhance the ease of transformation of farm inputs into finished goods. This will equally boost the manufacturing sector that has long been burdened by high operating costs due to high energy costs. 

We also believe that passing the long stalled Petroleum Industry Bill (PIB) would help boost investments and job creation in the oil and gas sector.

The reports that the 220 billion naira Micro Small and Medium Enterprise development Fund(MSME)  launched last August by the CBN is idle,  is disturbing. 

This Fund was conceived to meet finance requirements of small and medium enterprises, assist them increase capacity which will in turn rub-off positively on employment creation. Relevant authorities should do the needful to ensure that this Fund is put to use so that jobs can be generated through the several small businesses scattered across the country.

Job creation guarantees livelihoods that transform lives, and a check on crime and brigandage by jobless youths. The growing number of unemployed youths across the country is a time bomb that will explode at our collective peril. We should do everything to ensure that this time bomb does not explode.