The impact of the economy on job opportunities in Nigeria
Nigeria is a developing country that has vast natural resources, but the economy has been underperforming for the past decades.
The country has been struggling to create and sustain job opportunities due to economic and political instability.
The impact of the economy on job opportunities in Nigeria is a significant concern for policy makers, investors, and the public.
This article explores the impact of the economy on job opportunities in Nigeria. It examines the current economic situation and job market, the challenges of unemployment, and the efforts by the government and private sector to address joblessness in the country.
Current economic situation and job market
Nigeria’s economy is the largest in Africa and the 27th largest in the world, but it has been facing severe economic crises.
The country’s gross domestic product (GDP) growth rate has been sluggish, averaging 2.3% in the past five years.
The economy is dependent on crude oil exports, which account for 90% of the country’s export revenue.
The slump in global oil prices has had a negative effect on Nigeria’s economy, leading to a recession in 2016.
The job market in Nigeria is highly competitive, with more than 70% of the working population underemployed or unemployed.
The country is facing a youth unemployment crisis, with over 13 million young people out of work. The unemployment rate was 27.1% in the second quarter of 2020, up from 23.1% in the same period in 2018.
The COVID-19 pandemic has further worsened the employment situation, with job losses in the hospitality, aviation, and manufacturing industries.
Challenges of unemployment in Nigeria
The high rate of unemployment in Nigeria is a significant concern, as it poses social, economic, and political challenges.
The following are some of the challenges of unemployment in the country:
1. Poverty: Unemployment leads to poverty, as people are unable to earn a living and provide for their families.
2. Crime: Unemployed youth are more likely to engage in criminal activities, as they have limited legal means of earning a living.
3. Social unrest: High unemployment can lead to social unrest and political instability, as people become disillusioned with the government’s ability to provide job opportunities.
4. Brain drain: Skilled workers may leave the country in search of better job opportunities, leading to a brain drain and a loss of talent.
Efforts to address unemployment in Nigeria
The Nigerian government has implemented various policies and programs to address joblessness in the country. Some of these efforts include:
1. Economic diversification:
The government is trying to diversify the economy away from oil by promoting sectors such as agriculture, manufacturing, and technology.
This will create opportunities for job creation in these sectors.
2. Small and medium enterprises (SMEs) support:
The government is providing support to SMEs, which are considered the engine of economic growth and job creation.
3. Youth entrepreneurship programs:
The government is encouraging young people to become entrepreneurs by providing funding, training, and mentorship opportunities.
4. Public works programs:
The government is implementing public works programs such as road construction, building of schools and hospitals, and urban renewal projects that create jobs for the unemployed.
The private sector is also playing a significant role in addressing unemployment in Nigeria.
Companies are investing in the country, creating job opportunities in various sectors.
The telecommunication industry has been a major job creator, with the likes of MTN, Airtel, and Glo employing over 500,000 people.
