Feature/OPED
Seeking Solution to the Rising Unemployment Rate in Nigeria
By Jerome-Mario Utomi
The latest report published by the National Bureau of Statistics (NBS) on its website which among other things noted that the unemployment rate in Nigeria rose from 27.1 per cent in the second quarter of 2020 to 33 per cent has helped Nigerians see clearly how the deck is stacked against the poor and the disadvantaged.
Aside from making it the second-highest on the global list, the NBS report, going by analysis, shows that ‘more than 60 per cent of Nigeria’s working-age population is younger than 34.
Unemployment for people aged 15 to 24 stood at 53.4 per cent in the fourth quarter and at 37.2 per cent for people aged 25 to 34.
The jobless rate for women was 35.2 per cent compared with 31.8 per cent for men. The recovery of the economy with 200 million people will be slow, with growth seen at 1.5 per cent this year, after last year’s 1.9 per cent contraction, according to the International Monetary Fund (IMF). The output will only recover to pre-pandemic levels in 2022, the lender said.
The number of people looking for jobs will keep rising as population growth continues to outpace output expansion. Nigeria is expected to be the world’s third-most-populous country by 2050, with over 300 million people, according to the United Nations.
Unquestionably, while this quadrupling over the last five years which have attracted varying reactions from well-meaning Nigerians, remains a sad commentary by all ramifications as it is both worrying and scary, the present development demands two separate but similar actions.
First is the urgent shift from lamentation and rhetoric to finding solutions by asking solution-oriented questions.
The second has to do with the implementation of experts’ advice/solutions to unemployment in Nigeria.
This is indeed time to commit to mind the words of Franklin D Roosevelt, former President of the United States of America (USA), that extraordinary conditions call for extraordinary remedies.
Beginning with questions, it has become important to ask what could be responsible for the ever-increasing unemployment rate in Nigeria. Is it leadership or the nation’s educational system? If it is faulty education sector-driven, what is the government (both state and federal) doing to rework the policies since education is in the concurrent list of the nation’s 1999 constitution (as amended)? Are the leaders embodied with leadership virtues that the global community can respect? Or moral and ethical principles the people can applaud with enthusiasm?
While answers are being awaited, let’s take a look at what the experts are saying. As many have at different times and places argued that the rule for solving unemployment challenges has not changed all over the world. To arrest the drifting unemployment situation in the country, they pointed out that four sectors of ‘interest’ to watch are; education, science and technology, agriculture and infrastructures.
Talking about the educational system in the country, analysts are of the view that the education policies of the 6-3-3-4 system are excellent in the policy statement, but the inability of the financiers to provide the teaching tools for its success has truncated its intended goal and objectives.
However, to arrest the unemployment challenge, they added, entrepreneurial programmes should be integrated into the educational system from the primary schools to the university. Creativity, courage and endurance are skills that should be taught by psychologists to students at all classes of our educational system.
The situation says something more.
Nigeria, they explained, has to increase drastically the number of her current Polytechnics, Colleges of Technology and Technical Colleges in relation to the in-explicable very large number of universities and related academies in Nigeria’s economy in order to clearly address the training and development of professional and technical skills for technologies and industrial goods production in Nigeria’s economy.
The government science and technology development policy (with emphasis on no technology no economic progress) should be in place for promoting Nigeria’s industrial and economic development and should be focused on sustainable, well-funded and well-equipped science and engineering infrastructure complexes in all aspects of technologies and industrial goods production and manufacture and the creation of professional and technical human capital for economic development.
With the above highlight, it is important, in my views, that any country like Nigeria desirous of achieving sustainable development, must throw its weight behind agriculture by creating an enabling environment that will encourage youths to take to farming.
First, aside from the worrying awareness that by 2050, global consumption of food and energy is expected to double as the world’s population and incomes grow, while climate change is expected to have an adverse effect on both crop yields and the number of arable acres, we are in dire need of solution to this problem because unemployment has diverse implications.
Security-wise, a large unemployed youth population is a threat to the security of the few that are employed. Any transformation that does not have job creation at its main objective will not take us anywhere and the agricultural sector has that capacity to absorb the teeming unemployed youth in the country.
The second reason as noted in my recent piece on a similar topic is that globally, there are dramatic shifts from agriculture in preference for white-collar jobs, a trend that urgently needs to be reversed. Take as an illustration; over the past century in the United States of America (USA), the study has shown that there exists a shift in the locations and occupations of urban consumers.
In 1900, about 40 per cent of the total population was employed on the farm, and 60 per cent lived in rural areas. Today, the respective figures are only about one per cent and 20 per cent.
Over the past half-century, the number of farms has fallen by a factor of three. As a result, the ratio of urban eaters to rural farmers has markedly risen, giving the food consumer a more prominent role in shaping the food and farming system. The changing dynamic has also played a role in public calls to reform federal policy to focus more on the consumer implications of the food supply chain.
Separate from job creation, averting malnutrition which constitutes a serious setback to the socio-economic development of any nation is another reason why Nigeria must embrace agriculture-a vehicle for food security and sustainable socio-economic sector.
In fact, it was noted recently that in Nigeria, governments over the year have come to realize that sustainable growth is achievable only under an environment in which the generality of the people is exposed to a balanced diet, not just-food.
This explains why agriculture production should receive heightened attention. In Nigeria, an estimated 2.5 million children under-five suffer from severe acute malnutrition (sam) annually, exposing nearly 420,000 children within that age bracket to early death from common childhood illnesses such as diarrhoea, pneumonia and malaria.
For us to, therefore, achieve this objective in agriculture in ways that will guarantee food security, create employment as well as bring about development that is sustainable, the government must provide the needed support by funding, technical know-how and other specialised training.
The FG must contemplate developing a rail system that offers low fares and connection of major economic towns and landlocked cities to aid the distribution of food products and other economic products from advantaged to less advantaged areas.
Evidence abounds that such towns/cities referred to as disadvantaged often always hold the domestic trade and market prices of such commodities.
If implemented, such will assist the poor village farmers in Benue/Kano and other remote areas earn more money, contribute to lower food prices in Lagos and other cities through the impact on the operation of the market, increase the welfare of household both in Kano, Benue, Lagos and others while improving food security in the country, reduce stress/pressure daily mounted on Nigerian roads by articulated/haulage vehicles and drastically reduce road accidents on our major highways.
Jerome-Mario Utomi is the Programme Coordinator (Media and Policy), Social and Economic Justice Advocacy (SEJA), Lagos. He could be reached via [email protected]/08032725374.
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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