During the Africa Trade and Investment Summit, Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, highlighted a startling statistic about the Nigerian employment landscape. Oyedele stated that approximately 81% of employed Nigerians are not involved in productive sectors of the economy, suggesting that their work does not contribute meaningfully to economic growth.
Despite Nigeria’s relatively low official unemployment rate of 4.2%, Oyedele emphasized that the majority of employed individuals are not adding substantial value to the economy. He drew a comparison between Nigeria and the United Kingdom, noting that both countries have similar unemployment rates while Nigeria continues to grapple with high levels of poverty, with over 113 million people living in multidimensional poverty as of 2022.
Oyedele attributed Nigeria’s high poverty rate to the prevalence of working poor—individuals who are employed but still live in poverty due to the lack of decent jobs. He expressed the need to create meaningful employment opportunities to address this issue effectively.
Addressing the broader economic challenges facing Nigeria, Oyedele highlighted the impact of macroeconomic factors influenced by both domestic politics and the country’s policy environment. While acknowledging that Nigeria cannot control global economic trends, Oyedele stressed the importance of implementing policies that make it easier for businesses to thrive and attract international investors.
He outlined the three major mandates of the presidential committee, which include organizing and coordinating monetary, fiscal, and trade policies to steer Nigeria’s economic direction.
Key Points to Note:
- Nigeria’s official unemployment rate stands at 4.2% according to the National Bureau of Statistics (NBS) Labour Force report for the second quarter of 2023.
- The report revealed that 88% of employed Nigerians are self-employed, indicating a high level of self-employment in the country.
- There has been criticism of the methodology used to calculate Nigeria’s unemployment rate, with some questioning its accuracy in reflecting the country’s economic reality.
- The NBS defines employed individuals as those who have worked for pay or profit for at least one hour in the last seven days, a departure from the previous criteria of 40 hours.
Nairametrics