By Victor Ahiuma-Young

The negative growth of the  nation’s economy and its socio-economic consequences including job creation and security, is one of the takeaways from the 66th Annual General Meeting, AGM, of the Nigeria Employers’ Consultative Association, NECA.

In his review of the operating business environment of members in the last one year, NECA’s President, Taiwo Adeniyi, quoted the National Bureau of Statistics, NBS as saying that “the growth of the domestic economy declined to 3.1per cent in 2022 from 3.4 per cent that was achieved in 2021.

The agricultural sector, which is a critical component of the economy also declined to 1.88 per cent in 2022 from 2.13 per cent growth  in 2021. The  growth of the industrial sector declined to -0.62 per cent in 2022 from -0.47 per cent recorded in 2021.

However,  the service sector grew to 6.66 per cent in 2022 from 5.61 per cent that was achieved in 2021.“The decline in the annual GDP growth rate in 2022 is a cause for concern. A shrinking growth rate can lead to job losses, decrease in consumer spending and reduction in business growth. This can create a cycle of economic decline, making it difficult for businesses to operate while discouraging potential investments. The agricultural and industrial sectors were severely affected by the debilitating macroeconomic ambience in the year as growth  and contributions  to national output of these sectors declined in the period. 

 “The improvement in the service sector performance in the  year was a positive sign for businesses  and investors.   Growing economies usually create high job opportunities, which in turn lead to increase in consumer spending. Increased consumer spending would further lead to expansion in economic activities and by extension,  creating a cycle of economic growth.

“Nigeria has  one of the highest unemployment rates in the world, and this is expected to  persist in 2023, as it was estimated to reach the world’s highest at 40.1 per cent in June, 2023 according to KPMG Nigeria. This is due to several factors, including a mismatch between the skills of the workforce and the demands of the labour market, inadequate infrastructure and  low investment in job creation.  

“Therefore, addressing the employment challenge  will require Government’s intervention by supporting the Private Sector with friendly environment for doing business. In addition, government through relevant agencies and institutions are urged to intensify efforts in implementing programmes that encourage Apprenticeship, Technical and Vocational Skills and  entrepreneurship  development. These are paths to sustainable job creation.”