The Nigerian Labour Congress has rejected the unemployment statistics recently released by the National Bureau of Statistics, describing the report as a fictional account that fails to align with Nigeria’s economic realities.
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The Organized Private Sector echoed this sentiment, asserting that the report does not reflect the country’s prevailing conditions.
In its latest report, the NBS revealed that Nigeria’s unemployment rate had dropped to 4.3% in the second quarter of 2024, down from 5.3% in Q1 2024 and 5.0% in Q3 2023.
The report attributed this decline to improved labour market conditions and a rise in the Labour Force Participation Rate, which climbed to 79.5% from 77.3% in the previous quarter.
Additionally, the Employment-to-Population Ratio increased to 76.1% in Q2 2024, compared to 73.2% in Q1 2024.
The NBS highlighted the dominance of self-employment, which accounted for 85.6% of total employment, a slight increase from 84% in the preceding quarter. Informal employment also rose to 93%, underscoring the economy’s dependence on informal job roles.
Urban unemployment decreased to 5.2% from 6% in Q1 2024, while rural unemployment dropped even further to 2.8% from 4.3%.
The youth unemployment rate (ages 15–24) also saw a significant reduction to 6.5% from 8.4% in the previous quarter. However, the report noted a gender disparity, with female unemployment at 5.1% compared to 3.4% for males.
Despite these figures, the NLC and other critics strongly disagreed with the report.
The National Assistant General Secretary of the NLC, Chris Onyeka, dismissed the findings, branding the report a “voodoo document” disconnected from the harsh economic realities Nigerians face.
Onyeka questioned the credibility of the data, citing widespread factory closures, declining manufacturing activities, and shrinking consumer spending.
“Unemployment cannot be coming down in Nigeria when factories are closing shops,” Onyeka argued. “It cannot be coming down when there is increasing inventory and reduced consumer spending. If anything, unemployment is increasing,” he added.
Onyeka further challenged the NBS to clarify which sectors were driving the purported job growth, describing the report as “a figment of imagination concocted by people who want to manipulate figures.”
Similarly, President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, described the report as a “technical improvement” rather than a true reflection of economic realities.
He criticized the methodology used to calculate unemployment, suggesting that it fails to capture the difficulties faced by the economy and businesses.
Director of the Centre for Promotion of Private Enterprise, Dr. Muda Yusuf, echoed this criticism, calling for a revision of the methodology to better reflect the current economic environment.
He argued that employment should guarantee a livelihood, noting that many self-employment opportunities classified as jobs fail to meet this standard.
Yusuf pointed to slowing GDP growth in key job-creating sectors, such as agriculture (1.14%), manufacturing (0.92%), trade (0.65%), and real estate (0.68%), as evidence of an economic slowdown inconsistent with falling unemployment rates.
National President of the Association of Small Business Owners of Nigeria, Femi Egbesola, attributed the reported drop in unemployment to increased informal sector activity and reclassified employment metrics.
He suggested that economic pressures have pushed many Nigerians into subsistence work, gig-based roles, or temporary jobs created by government initiatives.
However, Egbesola warned that these metrics do not necessarily reflect improvements in job quality or income levels.
While the NBS data suggests positive trends, critics argue that it fails to capture the full scope of Nigeria’s economic challenges, including poverty levels and income distribution.
According to Yusuf, creating a more conducive environment for job creation and retention should be a priority for both the government and private sector.
