GROWING A JOBLESS POPULATION

The World Bank report on the economy is another wake-up call

Last week report by the World Bank that Nigeria is currently undergoing the worst unemployment crisis in its history should concern all relevant stakeholders in the country, even when it came as no surprise. Titled, ‘Of Roads Less Travelled: Assessing the Potential for Migration to Provide Overseas Jobs for Nigeria’s Youth’, the report particularly raised the alarm over the nation’s expanding working-age population combined with scarce domestic employment opportunities amid dwindling resources. This, according to the report, is creating high rates of unemployment, particularly for youth.

The bank particularly noted that the socio-economic challenges facing the country in the last 10 years have led to an astronomical increase in the number of Nigerian citizens seeking asylum and refugee status in other countries. A combination of rising unemployment, booming demography, and unfulfilled aspirations, according to the World Bank, results in increasing pressure on young Nigerians to migrate in search of gainful employment overseas. When you juxtapose the report against the background that there has been an 80% drop in foreign direct investment in the last 12 months, it is obvious that we have a serious challenge on our hands.

Already, insecurity has driven away many multinationals to pitch tent in nearby countries like Ghana while targeting Nigeria’s large market. Several businesses have also cut back because of Covid-19 uncertainties and the rising cost of doing business in the country. Government restrictions of social media and threatened regulations are limiting the entrepreneurial scope of the youth who are worst affected by unemployment. Meanwhile, the demand for young Nigerian graduates in both the United States and United Kingdom has increased. Nigerians are seen as aggressive, hardworking, achievement motivated among third world immigrants. The UK has adjusted its immigration policies, now allowing new Nigerian graduates a two-year window to work in the UK after graduation.

Taken together, these situations are increasing domestic unemployment and driving emigration. The situation is worse for those who live in rural communities. The Food and Agricultural Organisation of the United Nations has harped on how the insurgency deny farmers access to agricultural inputs in the area. But the problem is not restricted to the North-east. In virtually all parts of the country, many farmers cannot access their farms because of insecurity. This has started manifesting in the rising cost of food across the country. Despite the claims by government officials, the much-touted economic growth has not generated sufficient employment, nor has it addressed the growing gap between the rich and the poor. What makes the World Bank report even more worrisome is that the prospects of turning around the situation looks bleak given fluctuating oil prices and cascading value of the Naira.

While states and local governments seek oil-rents and jeopardise internally generated revenue, successive national governments have also not adequately used oil revenue to lift the ordinary Nigerian out of poverty. Rather, and in addition to rent-seeking, these revenues have served as slush funds and continue to enrich a few corporations and individuals over the masses. The high rate of out-of-school children and poor output in the education sector also contribute to deepening the challenge of unemployment as the nation continues to churn out a crop of uncompetitive youth in a world driven by technology. The federal government has also continued the regime of waivers to only a few persons as well as payment of subsidies that do not impact on the poor.

All said, we hope the federal government and the authorities in the 36 states will see the World Bank report as another wake-up call on the need to come up with strategies for job creation for our growing young population.