Unemployment in NIGERIA: Causes, Effects and Solutions
The causes of unemployment are practically what happen in all sectors. When considering the causes of unemployment we look at the economic condition and demography of the country. Developed countries also encountered this problem of unemployment during the early stage of their development. There are major and minor causes of unemployment. But in this article I will be discussing the major causes of unemployment in Nigeria alongside the minor causes.
Unemployment is a major barrier to fresh graduates and job seekers. I can cowardly say the government aren’t doing anything to calm the situation and resolve the issue.
This is a national crisis and a cause for alarm. (Mind you I never said natural crisis). Every year Nigeria universities produce thousands of graduates but could only offer hundreds of jobs to the graduates.
A friend of mine who happened to be the best graduating student in his department told about the unappealing first-hand experience he had with his School. The School publicly promised to award him a job, but till date he hasn’t been given a single job neither has he received the monetary award the school publicly announced.
The unemployment is eating up our country faster than imagined and needs utmost attention of every class of citizens.
I haven’t forgotten why we are here: but it would be wrong of me to neglect other vital information that relate to this topic. So in this topic I will be giving answers to the following search queries:
§ Causes of unemployment in Nigeria
§ Effects of Unemployment in Nigeria
§ Solution to Unemployment in Nigeria
§ Causes of Unemployment in Nigeria PDF
§ Types of Unemployment
§ Meaning of Unemployment
Types of Unemployment
Frictional
unemployment
Frictional unemployment is when workers
are jobless and looking for work in a healthy economy. It doesn't matter if
they leave voluntarily or are fired. Others may be returning to the labor
force. It's differentiated from other types of unemployment because it's part
of normal labor turnover.
Frictional unemployment is unavoidable.
The good news is that it's usually short-term. It's one of the components of
natural unemployment. It is the lowest rate of unemployment in a growing
economy. Unemployment below that level means employers can't find enough
workers to keep producing all they can. It slows economic growth. The other
component is structural unemployment. It occurs when workers' skills don't
match up with employers' needs.
Structural
Unemployment
Structural unemployment refers to a
mismatch between the jobs available and the skill levels of the unemployed.
Unlike cyclical unemployment, it’s caused by forces other than the business
cycle. It occurs when an underlying shift in the economy makes it difficult for
some groups to find jobs. It is harder to correct than other types of
unemployment.
Structural unemployment can keep the
unemployment rate high long after a recession is over. If ignored by policy
makers, it creates a higher natural unemployment rate.
Causes of this economic problems?
1. Over-population
It’s nothing strange; you agree with me
that Nigeria is over-populated, right? Ok, how does this fit in? Nigeria
population is 190 million. Job opportunities are less than 5000(being
euphemistic). This friendly figure means, for every vacant position, there are
hundreds of thousands of people competing for it. Over population has led to
fewer job opportunities: with rural-urban migration there’s increase in
unemployment in the city.
2. Poor Supply of Electricity as a cause of
unemployment
Entrepreneur says “Punctuality is the sole
of business” quote me “Electricity is the fuel of business”. Nigeria lacks
power supply, making a lot of entrepreneurs handicapped and dependent on others
to make ends meet. Without power supply, entrepreneurs are handicapped unable
to venture into self-business. This is the large golf between developed and
developing countries. Nigeria has failed to provide electricity for the people
making indigenous youth dependent. Many local companies which could not cope
with the high cost of running electricity plants/generator were forced to fold
up and have thrown it workers back to the labour market.
3. Ignorance as a cause of Unemployment
This is a disease infecting job seekers.
Here’s what I mean.
It’s true that there are fewer jobs in
Nigeria, but once in a blue moon few job opportunities pops up on the radar
screen of some companies. Some suitable job seekers are ignorant of such
opportunity making the golden opportunity slip off.
Lack of awareness is a problem to many job
seekers: as they fail to understand why they need to be updated about
latest/recent job opportunities.
Hi there, don’t make that mistake.
4. Importation of goods
Nigeria import food stuffs, equipment,
machineries that can be produced in Nigeria.
Let’s make this friendly to students who
need an essay on this topic.
Importation: Importation is simply the process of
buying goods from foreign countries and bringing it to our country (Nigeria).
Note: this is a lay man’s definition in
order to aid our reading
Now let’s me analyse how it contributes to
unemployment. To be factual, Nigeria imports rice, petrol, etc. which can be
manufactured in Nigeria because of our fertile land and abundance of crude oil
in Nigeria.
How does this fit in?
Producing these goods and services in
Nigeria, we need labour; resulting in increase in job opportunities. If Nigeria
refines petrol, thousands of job opportunities will be created. Nevertheless,
cost of living will be cheaper.
5. Apathy for Agriculture
Apathy is the lack of interest in
something. Many youths don’t want to do anything stressful but want to live an
easy life and work in an office where they can be paid one million naira per
month. Job seekers neglect the importance of agriculture and it great ability
to pull in wealth: they seek white collar job to no avail gives them nothing.
Agriculture is a sector neglected by fresh
graduates and job seekers. They detest the picture of working in a farm,
rearing animals and growing crops.
It’s quite pleasing to hear that few
graduates have grown interest in Agricultural sector. Take my word; you can
amass wealth by going into farming.
6. Poverty
Some graduates are clever and filled with
business ideas but are not are not able to implement them because they funds
and capitals needed.
Some job seekers are with little or no money.
How do you expect them to contribute to the community or implement their ideas?
Poverty can only be eradicated if the government do the right thing.
So, what’s the wrong thing they are doing?
A good question to ask; If you are a fan
of politics and news, you would be familiar with the wounds Nigeria government
is giving to her people.
I can’t continue listing the causes of
unemployment without giving honour to this miserable friend of our government:
Corruption.
7. Corruption; one of the major cause of
unemployment in Nigeria
This is something you’re expecting in this
list, right? Anyway I also couldn’t resist corruption from being on the list
because everything listed on this list directly or indirectly fall back to
corruption.
Corruption is the bane of development in
Nigeria. Nigeria is said to be the 8th most corrupt country in the world. Whoa,
we’ve something we rank for.
Nigeria has taken a turn that is difficult
back out, public funds which are supposed to be used for creation of job
opportunities are being used personal for selfish reasons.
Corruption is now a normal routine: work
functions to be carried out by four or five persons are carried out by one or
two persons. And the salaries for four or five persons are paid to one or two
persons.
Have you heard of ghost writers? This is
where names of non-existent workers are
added to the pay roll list and corrupt bosses collect such salaries at the end
of the month. It also circles bribery.
8. Lack of Infrastructures
Infrastructures including: ware house,
market, good road, electricity etc. is a threat to producers/manufacturers. The
inability of government to provide market for manufactured goods put the
producers and entrepreneurs at risk of losing their capital to the whirl wind
of destruction.
In the same vein, lack good road makes
transportation of goods costly and difficult. All these considered by
entrepreneurs discourage them.
9. Lack of Investors
Lack of Investors is also part of the
causes of unemployment in Nigeria. You are wondering how?
Investors are entrepreneurs who invest
into other people’s business ideas to make it a reality and a successful one.
Investors consider several things before
investing into your business ranging from location, environment, labour,
business report, including the economics of the country.
No investors will be willing to invest in
a corrupt country where corrupt people will swallow their capital and blame a
monkey or a snake. LoL.
It’s obvious of how Nigeria as a country is
hostile to potential investors.
10. Lack of Quality Education
The point listed on “causes of
unemployment” are not listed in a certain order but are listed randomly. If
it’s by significance, lack of quality education will certainly make it to the
top four.
So, how does cause unemployment in
Nigeria?
Many graduates come out from Universities
and colleges of education with little or nothing to contribute to the society.
What do I mean?
Lack of facilities and poor lecturers
render poor service to the Undergraduates making them unable to defend their
certificates. Universities in Nigeria are known for their theoretical teachings
and sermons.
11. Tribalism and Nepotism
Nepotism!!! This is very common in
Nigeria; in one word, it happens in all sectors in Nigeria and government
levels from the federal to the local. If you haven’t heard of nepotism: you
will be wondering; what’s nepotism?
Nepotism is the act of giving unfair
advantages to people you know (relatives, clients) if you are in a position of
power, especially giving them jobs.
Tribalism is also the act of
discriminating people from other tribes and favouring your tribe’s men. This
happens even in the Universities and Polytechnic where admission quota now
belongs to indigenes.
12. Security
This is one of the major causes of
business shut down. In any entrepreneur’s plan, security is of essence to them.
Many local business men have been thrown into abject poverty, because of the
absence of security.
Banks lose a lot of money to cyber-crime;
reducing their profit and making them unable to maintain their staffs.
When discussing the causes of unemployment in
Nigeria, we can’t but add this to the list because Nigeria is a victim of
insecurity.
EFFECTS
OF UNEMPLOYMENT IN NIGERIA
Yes!
I have made a point to the effects and solution to unemployment in
Nigeria. As stated above about the importance of security to our country and
how it affects some sectors: I can’t
but add:
1) Increase in crime rate
An Idle man is devil’s workshop. On my
Facebook page, I wrote a short poem on money and how dangerous it could be.
Unemployment makes youth and even elderly ones to resort to illegal ways of
making money.
Lack of money makes people murder others
just for money. (That’s for another day).
2) It worsens the country’s economic condition
SOLUTIONS
TO UNEMPLOYMENT IN NIGERIA
The solutions to unemployment are
combinations of the remedies of the causes of unemployment in Nigeria.
1.
Tighten the
security
2.
Provision of
Infrastructures such as good roads, ware house, market.
3.
Improving
the standard off education in Nigeria
4.
Provision of
electricity
5.
Encouraging
Farming and mechanized farming
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