•OPS advocates urgent infrastructural intervention

By Yinka Kolawole

Unemployment rate in Nigeria has grown from 17.5 per cent at the onset of democracy in 1999 to 23.1 per cent in 2018.

Unemployment

This is against the backdrop of a huge progress made in the first 10 years of the democratic dispensation when unemployment rate was reduced drastically. But it began spiraling again in 2015 shooting far beyond the level the military regime handed down in 1999.

Available statistics revealed that unemployment grew to 19.7 per cent through the first 10 years after the inauguration of the democratic government of Olusegun Obasanjo, but subsequently began a steady decline to a low of 7.5 per cent in the first quarter of 2015 (Q1’15), before it began another steady uptick to 8.2 per cent in Q2’15; 9.9 per cent in Q3’15 and ended the year at 10.4 per cent (Q4), averaging 9.0 per cent for the year.

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Nigeria’s population has also grown over the period from 119.3 million in 1999 to 195.9 million in 2018 and is currently estimated to be about 200.3 million as at May 22, 2019 by United Nations.

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At a population growth rate of approximately 3.1 per cent during the two-decade democratic dispensation and with the gross domestic product, GDP, tottering around 2.1 per cent presently, the unemployment rate of over 23 per cent is considered abnormally too high.

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What needs to change?

Members of the Organised Private Sector, OPS, have suggested measures to be taken by government to create jobs and thus, reduce the rate of unemployment in the country.

They urged the government, among other things, to look into the Nigeria Industrial Revolution Plan, NIRP, with emphasis on review of its backward integration policies to encourage local production and close infrastructural gaps.

“It is worthy of note that the current administration has adopted the NIRP as its policy document for the promotion of industrial development. This is in good spirit of ensuring continuity of policies that are found worthy. Presently, NIRP complements the Economic Recovery and Growth Plan, ERGP,” they stated.

Manufacturers

The Manufacturers Association of Nigeria, MAN, in a statement through its President, Engr. Mansur Ahmed, emphasized the need to reduce the cost of moving goods from ports to the factories.

He stated: “Global evidence has shown that no country in the world had ever fully industrialised without a robust railway system. No mention, however, is made of the need to dredge the various ports outside Lagos State to decongest Tin Can and Wharf ports and reduce the cost of moving goods from ports to the factories.”

Lagos Chamber of Commerce

In his comment, Director-General of Lagos Chamber of Commerce and Industry, LCCI, Mr Muda Yusuf, said government should focus on labour-intensive industries to enhance job creation.

He stated: “We should focus on labour-intensive industries to enhance job creation and promote economic inclusion. We should ensure that there is adequate investment in core industries such as iron and steel and petrochemical. We should take full advantage of the large Nigerian market to scale up our industrial capacity utilisation.”

Yusuf said although several efforts have been made in the last 20 years to promote industrialisation, not much success has been made.

He stated further: “It is evident that numerous laudable steps have been taken in the last two decades to promote industrialisation but not much progress has been achieved. We have seen some outcomes of positive nature with regards to the food & beverage sector as well as the cement industry. Many of the other segments in the sector are not deeply rooted in manufacturing because of their weak linkages and local content. Some manufacturers are as dependent on import as importers of consumer products of niche goods.

“It is important to complement our protectionist policies with the drive for competitiveness. We can only achieve a sustainable industrial growth when we ensure that our manufacturing firms are competitive domestically and globally. This should be our vision.”

On infrastructure, Yusuf said: “The systemic issues of infrastructure should be addressed as a matter of utmost priority. Immediate focus should be on electricity supply and transportation. Unless we have these two critical infrastructure in place, it will be very difficult to ensure a competitive industrial sector and to make possible the transformation of the sector.”