Written by: Shalom Agbana

In the early months of 2023, Nigeria faced a concerning issue: a staggering 19.8% of the working population was unemployed. This marked an increase from the 21.4% reported in the previous quarter (Business Day, 2023). The backbone of any thriving society is employment, as it provides a means to sustain one’s standard of living through income and wages.

The consistent influx of fresh graduates into the workforce has played a significant role in driving up the unemployment rate. What’s troubling is that many graduates now find themselves on a seemingly endless quest for suitable positions that match their qualifications. This is quite the conundrum, considering the common wisdom that a good education should lead to a decent job upon graduation. Yet, for those fortunate enough to secure employment, it often hinges on having the right “connections” in high places.

Furthermore, the demand for years of prior work experience for most respected professions doesn’t help the situation. It’s a baffling question: How can freshly minted graduates be expected to possess five years of professional experience? In Nigeria, students face a unique challenge when it comes to gaining work experience and earning extra income because the country largely lacks an hourly rate hiring system. If such a system were in place, students could find part-time work opportunities, similar to internships, which would undoubtedly level the playing field. This would not only benefit the students but also the employers, especially those businesses operating around the clock, aiming to prevent overworking their staff.

However, Nigeria currently adheres to a policy that penalizes those who don’t commit to a full month of labor, leading to either non-recruitment or a hefty reduction in pay, sometimes up to 50%. On top of unemployment, there’s also the growing concern of underemployment. This term describes a scenario where people in various jobs yearn for additional work since their current positions are insufficient to meet their needs. Recent data indicates that the underemployment rate in Nigeria was expected to reach 13.7% in the last quarter of 2022 and spiked to 21.2% in the first quarter of 2023 (Business Day, 2023). This has sparked a shift in the mindset of parents, who are now emphasizing the importance of their children gaining additional skills or engaging in manual work. As the economy remains challenging, parents have moved away from solely focusing on academic success to recognizing the value of their children acquiring practical skills or part-time jobs. The data shows a growing number of Nigerians are turning to farming or starting their own businesses, with figures rising from 73.1% in the last quarter of 2022 to 75.4% in the first quarter of 2023 (Business Day, 2023).

It’s clear that the traditional nine-to-five job is becoming elusive for the majority of Nigerians, given the significant portion of the employed being self-employed.

Addressing the challenges of unemployment and underemployment in Nigeria is a complex task, but there are several key strategies and solutions that can help mitigate these issues:

1. Invest in Education and Skill Development: • Enhance the quality of education to better prepare students for the job market. • Promote vocational and technical training to equip individuals with practical skills. • Encourage lifelong learning and upskilling to adapt to evolving job requirements.

2. Support Entrepreneurship and Small Businesses: • Create an enabling environment for small businesses to thrive through favorable policies and access to capital. • Establish business incubators and accelerators to foster entrepreneurship. • Provide training and mentorship for aspiring entrepreneurs.

3. Promote Internship and Apprenticeship Programs: • Encourage companies to offer structured internship programs to students and recent graduates. • Develop apprenticeship programs in collaboration with industries to bridge the skills gap. • Government incentives for companies offering internships and apprenticeships.

4. Improve Networking and Job Placement: • Establish job placement centers and career counseling services in educational institutions. • Encourage the use of professional networking platforms. • Promote transparency in job recruitment to reduce reliance on “connections.”

Other strategies include:

• Consider revising labor laws to accommodate part-time, temporary, and hourly work arrangements.

• Encourage the private sector to adopt flexible hiring practices. • Ensure fair and equitable treatment of all workers, regardless of their contract type.

• Invest in sectors beyond oil and gas, such as agriculture, technology, and manufacturing.

• Promote export-oriented industries to generate foreign exchange and create more jobs.

• Encourage innovation and research and development to drive economic growth.

• Develop and implement job creation programs and initiatives.

• Invest in infrastructure projects that can generate employment opportunities.

• Focus on social safety nets to support vulnerable populations.

• Invest in modernizing and mechanizing agriculture to make it more attractive to the youth.

• Encourage young people to engage in agribusiness.

• Improve access to finance and market linkages for rural farmers.

• Foster collaboration between the government and private sector to create job opportunities.

Implementing these solutions will require a concerted effort from government, businesses, educational institutions, and civil society. Collaboration and a long-term commitment to addressing unemployment and underemployment are essential to achieving meaningful change in Nigeria’s labor market.

Reference

Business Day: Cynthia Egboboh, (2023, August 24), Nigeria's Unemployment Rate Plunges to 4.1%

​https://businessday.ng/news/article/nigerias-unemployment-rate-plunges-to-4-1/​