Opinion
Begging The Unemployment Question
It goes without saying that one of the impedments to the socio-economic development of the Nigerian nation is the ever-increasing rate of unemployment. Since attainment of independence in 1960, the optimistic predictions about the ability of the modern industrial sector of the country to absorb the increasing number of urban unemployed and rural underemployed labour force have not been realised. In spite of the minimally noticed unemployment in the country in the early 1960s, one of the national objectives of the first National Development Plan was to develop as rapidly as possible, opportunities in education, health, and other sectors for creation of more jobs. But unfortunately the incidence of unemployment in the country has grown deeper and become widespread, cutting across all strata and geographical entities. A great number of those unemployed are mostly secondary school leavers and university graduates. As indicated in a publication titled “Productivity and Unemployment in Nigeria”, by Mike I. Obadan and Ayodele F. Odusola, as at 1996, an annual average of about 2.8 million fresh graduates enter the Nigerian labour market, with only about 10 per cent of them getting employment. Certainly, the situation is worse now.
The open urban unemployment only reveals the visible aspects of the unemployment problem in the country. The actual underutilisation of labour takes many other forms including various manifestations of underemployment and hidden unemployment. Thus to get a full understanding of the significance of unemployment problem in the country, we must also take into account, in addition to the open unemployed, those larger numbers of others who may be visibly active, but in economic sense are grossly underutilised. They include the hawkers who work all day in order to sell uneconomic quantilities of foreign and domestic products in our big cities. They include those who are engaged in second choice employment activities primarily because job opportunities are not available at the levels of education which they have attained. And they include farm labourers who are idle after the planting season and the construction company workers who are laid off during the rainy season.
Generally, underemployment rates are higher in the rural areas than the urban centres, and also higher among the females than the males.
Both unemployment and underemployment constitute a serious constraint to the economic progress of any nation. In fact they represent an obvious waste of the nation’s manpower resources.
In Nigeria, it is difficult to ascertain or quantify the waste because, in the absence of reliable statistical data, nobody is certain of the exact number of persons currently out of work. Statistics of the labour force, of persons employed, of employment and underemployment, and of vacant positions are scanty and in many cases non-existent in the local government councils, and the relevant ministries or departments both at the state and federal levels.
Several factors have been linked with the unemployment or underemployment dilemma facing the country. Popular among them are labour migration from rural to urban centres, high population growth rate, influx of foreigners from neighbouring countries, and faulty educational system which does not prepare its products for gainful employment.
But the most critical factor, and most neglected is the limited labour absorptive capacity of the country. As pointed out by the Professor of Economics and International Affairs, W. Arthur Lewis in his book titled Some Aspects of Economic Development: “One major difference between the United States and the underdeveloped countries is the apparently unlimited American capacity to absorb the products of schools”. Thirty eight years ago when only 15 percent of Americans obtained bachelor’s degrees, the people were afraid that they would not all find what to do. But as the number accelerated surprisingly, there was no surplus in the labour market. The American economy was elastic enough to absorb the increased number that the schools turned out.
The problem with Nigeria in terms of employment capacity is that the number of jobs for university and polytechnic graduates in physics, chemistry, biology, mathematics, arts, social sciences, engineering, or some other professions are few. Consequently, as the number of graduates increases, the surplus goes into administration and other areas to do the jobs which can be satisfactorily handled by secondary school leavers. In the end, a large proportion of those who have acquired specialised training do not use it.
So as the Minister of Labour and Productivity, Chief Emeka Wogu, promises the mass of unemployed Nigerians job opportunities in the days ahead, he should first of all initiate policies and programmes that will aid our educational system to produce creative and practical men and women who can adapt to changing job patterns.
But above all, government in collaboration with the private sector should expand the absorptive capacity for the country’s school products – primary and secondary school leavers and university and polytechnic graduates.
This is to say that Nigerian governments at all levels should give greater priority to labour-intensive projects. With the country’s abundant labour force, there is the need for industrial establishments to employ techniques of production that will guarantee a fairly large employment of labour.
Besides, rural development programme should be given priority attention. Such programmes should include agricultural development, expansion of food processing industries and small scale industries, provision of rural access roads, and other basic infrastructural facilities. These strategies can contribute immensely to gainful employment of the rural populace. And indeed, concerted efforts should be made in the area of data collection and information gathering on labour force and the labour market in the country. Absence of such vital information makes it difficult to carry out effective planning in the labour sector.
Vincent Ochonma
Opinion
A Renewing Optimism For Naira
 
														Opinion
Don’t Kill Tam David-West
 
														Opinion
Fuel Subsidy Removal and the Economic Implications for Nigerians
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo
- 
																Niger Delta5 days agoPartnership With Security Chiefs’ Excites Ogbuku … As NDDC Unveils Naval Outpost In Bayelsa 
- 
																	   News5 days ago News5 days agoN’Assembly Committee Approves New State ForS’East 
- 
																	   Maritime5 days ago Maritime5 days agoNIWA Launches Operations To Tackle Water Hyacinth Menace 
- 
																	   Rivers5 days ago Rivers5 days agoReps’ Committee On Health Lauds RSG On Primary Healthcare Delivery 
- 
																	   Sports5 days ago Sports5 days agoLagos Women Race set to empower participants 
- 
																Niger Delta5 days agoOborevwori Seeks Private Sector Partnership In Security … As Delta Launches Security Trust Fund 
- 
																	   News5 days ago News5 days agoSERAP Demands NNPCL Account For Oil Revenues, Threatens Legal Action 
- 
																	   Maritime5 days ago Maritime5 days agoCustoms Intercepts N5.3BN Illicit Drugs AT TIN CAN PORT 

