The National Bureau of Statistics (NBS) has come under heavy criticism from labor unions and private sector leaders following the release of its latest report, which claims that Nigeria’s unemployment rate dropped to 4.3% in the second quarter of 2024. Critics have dismissed the findings as unrealistic, alleging they fail to reflect the country’s harsh economic conditions.
Unemployment Figures Questioned
According to the NBS, the unemployment rate has consistently declined, dropping from 5.3% in Q1 2024 to 4.3% in Q2 2024, with metrics such as the Employment-to-Population Ratio improving to 76.1% during the same period. The report also noted a rise in self-employment and informal jobs, which account for 85.6% and 93% of total employment, respectively.
The NBS also reported urban unemployment at 5.2%, compared to 2.8% in rural areas, attributing the disparity to agriculture and informal activities that dominate rural economies.
Despite these figures, the Nigerian Labour Congress (NLC), the Organised Private Sector (OPS), and economists have challenged the report’s validity.
NLC Blasts NBS Report as “Voodoo Document”
Chris Onyeka, Assistant General Secretary of the Nigerian Labour Congress (NLC), criticized the report as detached from reality, describing it as a “fabrication designed to mislead the public.”
“Unemployment cannot be coming down in Nigeria when factories are closing shops, consumer spending is shrinking, and inventories are rising,” Onyeka stated in an interview with The PUNCH.
He questioned the methodology used by the NBS and demanded transparency. “Where are the jobs coming from? Employers are grappling with economic slowdowns, not hiring more people,” Onyeka argued. He likened the NBS figures to “INEC-style manipulation,” referencing perceived flaws in Nigeria’s election management.
Private Sector Leaders Echo Concerns
The President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, expressed skepticism about the reported improvements, attributing the data to technical adjustments rather than actual job creation.
“The way employment is now calculated seems to have technically improved the figures. However, the economy itself does not reflect significant reductions in unemployment,” Idahosa said.
Similarly, Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, criticized the data as disconnected from on-ground realities. He argued that many self-employment ventures, while included in employment statistics, do not guarantee sustainable livelihoods.
“The major sectors that create jobs—agriculture, manufacturing, trade, and real estate—are recording sluggish GDP growth, all below 1% in the last quarter. This raises questions about the claimed job creation,” Yusuf noted.
Experts Highlight Methodological Flaws
Economists have called for a review of the NBS methodology to better reflect Nigeria’s complex labor market. Dr. Femi Egbesola, National President of the Association of Small Business Owners of Nigeria, pointed to structural factors, such as the dominance of informal and subsistence employment, that distort unemployment metrics.
“Working just one hour a week can qualify as employment under some methodologies, which can lower unemployment rates without improving job quality or income levels,” Egbesola explained.
He emphasized that while government programs and skill acquisition initiatives may create temporary jobs, they do not necessarily translate into long-term economic improvements.
Economic Realities Contradict Claims
Nigeria’s struggling economy, marked by factory closures, rising inflation, and high energy costs, has left many small and medium enterprises on the brink of collapse. The latest GDP figures highlight slow growth in key job-creating sectors:
- Agriculture grew by just 1.14%.
- Manufacturing recorded 0.92% growth.
- Trade increased by 0.65%.
- Real estate grew by 0.68%.
“These figures are indicative of an economy in distress, not one generating significant employment opportunities,” Yusuf remarked.
Calls for Action
Critics have urged the federal government to prioritize policies that support job creation and retention. Dr. Egbesola recommended targeted interventions for small businesses, which are struggling with high operational costs and regulatory challenges.
“We need to address the root causes of job losses, such as exchange rate volatility, rising energy costs, and inadequate infrastructure,” he said.
