THE AGONIZING UNEMPLOYMENT SITUATION N NIGERIA:WAY FORWARD

THE AGONIZING UNEMPLOYMENT SITUATION IN NIGERIA

By Seun Adeogun

July 2011

The dawdling approach of government to the issue of mass unemployment is opening up more avenues for social outburst, unrest and crisis.in the past few years the situation has not been able to get a thorough and positive action form the authority, thereby putting the nation’s security and corporate existence at jeopardy.

In the past twelve years of democratic governance in which the unemployment rate have soured high than ever, so much fund has been expended by the Federal Government to stimulate the nation’s economy but the lack of strong-will to ensure full utilisation and monitoring of these funds on the part of the government led to the misappropriation of these funds by some public officers and political jobbers leaving the common majority to languish in suffering.

Early in 2000, the administration of President Olusegun Obasanjo came out with the privatization policy which was expected to facilitate infrastructural development, economic viability and also create massive employment opportunities but the recent revelation from the incumbent vice president Nimadi Sambo indicated that about 80% of the privatised companies are not working. This has however led to the colossal loss of the expected economic returns from the much publicised public enterprise privatisation exercise.

Majority of the privatised public corporations that expected to generate additional employment opportunities such as the Delta Steel Company that ab initio employed up to 20,000 at creation now have less than 4,000 workforces. Going by a World Bank report, the steel industry alone could have created at least 40,000 jobs while saving us a lot of foreign exchange putting into consideration the massive revolution in the auto industry. In like manner, the Electricity Metre Company of Nigeria, Zaria, privatised in December 2002 recently retrenched about 90% of its workers thereby compounding the unemployment figure in the country.

 In 2007 under the late President Yar’dua, N 500 billion naira industrial fund was devoted as an intervention fund to resuscitate the ailing real sector. Till date the industry is yet to bounce back into operation despite having the ability to absorb the teeming unemployed youths. The agricultural sector and textile industry alone if revived are viable enough to absorb a large percentage of teeming unemployed youths. But one unfortunate thing is that no one has really felt the impact of these intervention funds. 

Against this background, this social economic challenge is fast brewing a massive social crisis which the government is already finding very difficult to manage. One would think the government of the day would have learnt some lessons from the uprising in Tunisia, Egypt and lately, the reactions in some parts of London, and brazen up its economic recovery and job creation effort.

Psychologists have opined that one of the greatest instincts in man is the instinct for survival and the moment there’s no legitimate or meaningful way to survival, man is tempted to look the other way for sustenance. This high rate of insecurity in the nation in recent times is nothing other than a litmus test for this psychological assertion.

Not only has the unemployment situation rendered some of our best hands idle, largely enough, it has resulted into value and productivity degradation. A handful percentage of our unemployed youths are turning into different kinds of illegitimate ventures in a bid to survive. Some of them now find solace in armed robbery, fraudulent activities, drug peddling, smuggling, terrorism, militancy, prostitution, ritual killings, suicide, etc. which are all  prominent within the society today.

The Council for Unemployed Nigerians said about 48.9 million Nigerians are currently unemployed. This figure coincides with the World Bank 2009 statistics that state that about 40 million Nigerian youths (28.57%) are unemployed.

The Way Forward

If we must find a lasting solution to the flying rate of unemployment, then we must begin to look inward to effect a positive change. Good and practicable economic policies would go a long way to engender the economy, hence creating avenues for productivity, employment and small business growth.

The government must play no joke with the issue of corruption. There must be Zero tolerance to corruption if we must curtail the unemployment situation. Funds released for infrastructural development and other developmental initiatives must be utilised as proposed.

Noting short of a viable business environment is needful. The government must provide a viable business environment for Small and Medium Scale Enterprises to thrive. The government has the jurisdiction and resources to create a viable business environment for the small and medium scale enterprises to excel. The SME’s have the potency to absorb the teeming unemployed people.

Infrastructural development is no doubt an important issue that should be treated with urgent attention. The stability of power is a cogent aspect of this reform. Regular power supply alone could engender business activities, hence reducing the excess amount of money spend by business owners on alternative power generation. These amounts could be expended on some other profitable aspect of business process that will in turn boost business expansion and perhaps create more job opportunities.

Nonetheless, emphasis must be place on Human capacity development which is a core aspect of employment generation. Funding and effective management of the educational system is essential. Emphasis should be made on professional and creative entrepreneurship courses. This will do more than enough in equipping our teeming youths to becoming job creators and employers of labour rather than being job seekers.

The activities of the Ministries of Youth and Development, and that of Labour and Productivity should be redefined. Really one can’t identify what both ministries are doing to empower the youthful population and managed employment generation in the country. It’s obvious that we need Social reformation within the public service, one that can be instituted by an effective & conscientious leadership at all level of governance. Our present predicament requires an effective leadership, one that has the will power to implement favourable economic policies regardless of stepping on the toes of those benefiting from the Nigerian negative situation.

Seun Adeogun can be reached via luseunbravura@gmail.com  or http://www.seunadeogun.blogspot.com/