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The World of Statistics reported that Nigeria has the highest global unemployment rate at 33.3%. Meanwhile, Oyo State’s Governor Seyi…
The World of Statistics reported that Nigeria has the highest global unemployment rate at 33.3%. Meanwhile, Oyo State’s Governor Seyi Makinde has announced a short-term plan to mitigate the effects of the fuel subsidy removal. He said his administration aims to address food security, transportation and other sectors to alleviate economic difficulties. Makinde directed the civil servants to resume work after their recent strike, promising to pay their August salary with the two-month owed deductions and explore further dialogue options.
It is quite disappointing that Nigeria has not officially released updated unemployment figures for the past three years. Despite discussions about changing the calculation method, the new numbers still need to be made available. However, a rough analysis indicates a worsening situation since 2020: fewer people are employed, and those with jobs are grappling with rapidly eroding purchasing power. This has pushed many Nigerians to the brink of poverty, and the government’s responses have mostly been limited to rhetoric. This situation is a potential powderkeg of social unrest as seen in Yola, Adamawa state last week. Like most sub-Saharan African countries, Nigeria has a serious productivity problem, with most of its farming population producing just enough to feed their families. Over the past decade, farmer-herder clashes have caused many families to migrate internally from rural farming communities to urban towns. About 50 percent of Nigerians live in urban areas, and many of these people are either unemployed or underemployed. Much of what is consumed in Nigeria, including food, is imported, and there is little incentive to establish production factories. Where there are factories, challenges are daunting. Noteworthily, Seyi Makinde has showcased progress in food and energy security, yet all governors, including him, must intensify their endeavours. Nigeria can produce and export significant quantities, such as 16 million metric tonnes of palm oil, 1.8 million tonnes of cocoa, 11 million metric tonnes of corn and 7.5 million metric tonnes of rice. Regrettably, realising this potential has been hampered. The imperative lies in the government investing in agriculture and infrastructure to elevate food production and tackle sector-specific challenges like insecurity and corruption. Governors across Nigeria must heighten their commitment to food and energy security. Developing robust strategies to address challenges, shared resource utilisation, and collaborative expertise-sharing must happen. Additionally, the states must capitalise on the newfound legal freedom to build railways, a significant advancement recently permitted by the federal government. This avenue empowers states to cultivate their transportation infrastructure, yielding economic benefits. Railways are integral to modern economies, fostering food and energy security by enhancing goods and passenger transport efficiency. The resulting job creation and economic progress will contribute to Nigeria’s prosperity.