1. BY
OSIME AMOS UWADIALE
PROGRAMME MANAGER
McFELEY DEVELOPMENT ASSOCIATES
PROGRAMME DIRECTOR
BISI OGUNJOBI FOUNDATION
10 JANUARY 2015
1
THEME: “PARADIGM SHIFT THINKING: TECHNICAL
AND BUSINESS SKILLS ACQUISITION AS PANACEA
FOR UNEMPLOYMENT IN NIGERIA.”
2. ORDER OF DISCUSSION
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.” 2
► Introduction
- Greetings and Appreciation
► Conceptual Framework : Definition of Unemployment
► Trends and Pattern of Unemployment in Nigeria
► Causes of Unemployment in Nigeria
► Consequences of Unemployment
► Employment Generation Programmes in Nigeria
► Assessment of Past Employment Generation Programes
► Recent Efforts by the Federal Government of Nigeria
3. ► Paradigm Shift Thinking to Technical and Business Skill
Acquisition
► Challenges Facing Entrepreneurship Education in Nigeria
► Way Forward
► Personal Experience
► Conclusion
► Donation
► Bibliography
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
3
4. 1. Conceptual Framework
Definition of Unemployment
► The International Labour Organization (ILO) defines the
unemployed as the number of the economically active population
who is without work but available and seeking work, including
people who have lost their jobs and those who have voluntarily left
work.
► Various forms of unemployment such as seasonal, cyclical, and
structural unemployment exist in Nigeria.
► Disparity in the incidence of unemployment between rural and
urban areas, age brackets and gender.
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
5
5. 0
5
10
15
20
25
30
Chart 1: World Unemployment Rates (2011)
Unemployed Rates
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
Source: International Comparisons of Annual Labor Force Statistics, 1970-2012
6
6. 2.Trends and Pattern of Unemployment in Nigeria
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
► Nigeria has a youth population of 80 million, representing about 60
percent of the total population with a growth rate of 2.6 percent per
year.
7
0
5
10
15
20
25
30
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Chart 2: Unemployment Rate (2000-2011)
Source: National Bureau of Statistics (2011)
► Percentage of unemployed persons ranged from 13
percent in year 2000, declined to 11.9 percent in 2005 and
increased to 23.9 percent in 2011.
► Youth population remains vibrant with an average
annual entrant to the labour force of 1.8 million
between 2006 and 2011.
7. “Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
► The number of unemployed persons increased from 7 million in 2006 to
16 million in 2011 excluding the newly unemployed persons at 2 million
equivalent to 23.9 percent of the labour force.
Table 1: Overview of Nigeria Employment Situation in Nigeria (2006-2011)
Nigeria
Estimated
Population
2006 2007 2008 2009 2010 2011
140,431,790 144,925,607 149,563,227 154,349,250 159,288,426 164,385,656
Economically
Active
78,922,666 81,448,191 84,054,533 86,744,278 89,520,095 92,384,738
Labour Force 57,455,701 59,294,283 61,191,700 63,149,835 65,170,629 67,256,090
Employed 50,388,650 51,763,909 52,074,137 50,709,317 51,224,115 51,181,884
Unemployed 7,067,051 7,530,374 9,117,563 12,440,517 13,946,515 16,074,205
Newly
Unemployed
463,323 1,587,189 3,322,954 1,505,997 2,127,691
Source: National Bureau of Statistics (2011) Annual Socio-Economic Report
► 41.6 percent of persons aged between 15 and 24 years were
unemployed, while 21.3 percent of persons with post-secondary
education were unemployed. The comparative data for male and
female were 17 and 23.3 percent respectively.
8
8. 0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
1 2 3 4 5 6
Unemployed
2006 2007 2008 2009 2010 2011
Chart 3: Unemployed Persons in Nigeria (2006-2011)
Source: National Bureau of Statistics (2011) Annual Socio-Economic Report
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.” 9
9. 3.Causes of Unemployment in Nigeria
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
► Rapid population growth of the country (140,431,790 as per 2006
census) which is projected to be over 180 million by 2020;
► Declining industrial growth and low installed capacity utilization;
► Outdated school curricula and inadequate technical and vocational
schools as well as absence of entrepreneur skill acquisition programs;
► Negative impact of various economic policy measures;
► Poor implementation of government policies and programmes
designed to address unemployment and job creation; and
► High incidence of corruption
10
Causes
10. 4. Consequences of Unemployment
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
► Increase in level of poverty
► Harbinger of violent and anti-social behaviors
► High rate of insecurity and crime
11
11. ► Increase in youth restiveness
► Dehumanization
► Craving for ‘stomach infrastructure’
The newly celebrated maxim in our political terminology
‘stomach infrastructure’ - as a way of addressing citizen
welfare, is no more than a way of inducing the population to
support a particular candidate or party in an election by
giving out goodies in exchange for their votes. Indeed, it is a
form of corruption, which is a product of the increasing
level of poverty and unemployment in the country.
► Idle youths engage in criminal activities and
social vices as an alternative means of
generating income
Consequences of Unemployment….contd
12
12. We have a duty to enlighten the ordinary citizens on the
fact that the clamour for stomach infrastructure and
sharing of goodies is not a substitute for the provision of
physical and social infrastructure, employment
generation and job creation as well as the security of
lives and property. Only good governance can assure
citizens of equal access to opportunities that guarantee
self-actualization and employment.
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
13
13. 5. Employment Generation Programmes in Nigeria
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
► General Yakubu Gowon’s National Accelerated Food Production
Programme (NAFPP);
► General Olusegun Obasanjo’s Operation Feed the Nation (OFN);
► Alhaji Shehu Shagari’s Green Revolution Programme (GRP);
► General Ibrahim Babangida created the Directorate of Food, Roads and
Rural Infrastructure (DFRRI), National Agricultural Land Development
Authority (NALDA);
14
14. ► General Sani Abacha’s introduced Family Economic Advancement
Programme (FEAP) and his wife’s Family Support Programme (FSP);
► Olusegun Obasanjo’s National Poverty Eradication Program (NAPEP),
National Directorate of Employment (NDE) and National Economic
Empowerment and Development Strategy (NEEDS);
► Alhaji Umaru Musa Yar’adua’s “Seven-Point Agenda; and
► President Goodluck Jonathan’s Economic Transformation Agenda
These efforts have not resulted in significant reduction in youth unemployment. For example, it was
estimated that NDE which was noted to be the most successful government agency for training youth
for skill acquisition in employment generation and job creation (Akpasung 2006), including Open
Apprenticeship Scheme – In all only 914,230 less than one million benefited from the NDE
programme during Obasanjo regime up to 2006 – i.e 130,000 per annum.
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
15
15. 6. Assessment of Past Employment Generation
Programmes
► Lack of commitment by the government.
► Lack of effective coordination of the projects and programmes among
government agencies and among the 3 tiers of government.
► Lack build on approach leading to abandoned projects and reinventing
the wheel.
► Corruption! Corruption!! Corruption!!!
The overall conclusion is that none of the government programmes made a
significant impact on job creation, employment generation and poverty
reduction.
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
16
16. “Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
7. Some Recent Efforts by the Federal
Government of Nigeria
► Technical Vocational Education and Training (TVET) Programme
using the Subsidy Reinvestment and Empowerment Programme
(SURE-P);
► ‘YOUWIN’ Programme;
► Introduction of Entrepreneurship Education into the curricula of all
tertiary institutions;
Sustainability
► Fall in the price of crude oil in the world market since the 3rd quarter
of 2014 raises concern on the sustainability of the SURE-P initiative.
There is need for radical change in the approach to employment
generation and poverty reduction programmes.
17
17. “Paradigm Shift Thinking to Technical and Business
Skill Acquisition”
Is it the Panacea to Unemployment in Nigeria?
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
18
18. ► There is the urgent need for a viable entrepreneurship model that would
help tackle the endemic poverty, unemployment, illiteracy, chronic
diseases, crimes, terrorism and insurgency.
► The model must promote the development and growth of SMEs, wealth
creation, enhance value reorientation, and preserve the ecosystem to
achieve sustainable economic development.
► Labour intensive construction activities.
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
8. Paradigm Shift Thinking to Technical and
Business Skill Acquisition
19
19. 9. Challenges Facing Entrepreneurship Education in
Nigeria
► The style of teaching of Entrepreneurship Education across the tertiary
institutions.
► Absence of standard text-books and other useful learning materials on
Entrepreneurship Education to address the peculiar Nigerian business
environment.
► Inadequate funding.
► Students’ erroneous perception on Entrepreneurship Education.
► The experiences of the self-employed in real life market.
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
20
20. ► Difficulty of accessing funds in banks, high interest rates and hard term
and conditions .
► Compliance with numerous government regulations.
► Tough macro-economic environment.
► Infrastructural decay
► High cost of raw materials
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
10. Challenges Facing the Self-Employed in Real
Life Market
21
21. “Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
11. Way Forward
The need for attitudinal change of the population towards local
content in the housing construction industry that holds a strong
potential for employment generation.
22
For example government programmes for mass housing to alleviate poverty
and create employment.
► Local content less than 10% courtesy of made in China
► Jobs are created for the Chinese rather than Nigerians.
► Artisans and skilled labour imported from West African neighbouring
countries.
22. “Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
Way Forward…..contd
23
The need for enhancing the implementation performance of government
programmes and policies to hinge on the programmes rather than the
initiator or government.
► Consistent implementation of policies and programmes irrespective of the
change in the initiating Ministers , Governors or successive governments.
23. “Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
11. My Personal Experience
24
►Impact of the change of policy on the role of the Cocoa
Marketing Board
In today’s circumstance of declining oil revenue, the development certainly
calls for a paradigm shift thinking within the framework of diversification
of the Nigerian economy.
24. “Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
Paradigm Shift
Technical and Business Skills Acquistion
Panacea to Unemployment
25
25. The conclusion is that Technical and Business Skills Acquisition
is an option for tackling the challenge
of youth unemployment
but it is not an open sesame key.
Certainly it is a NECESSARY but not SUFFICIENT condition.
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
26
Conclusion
26. “Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
Donation
27
27. THANK YOU
28“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
28. • Akpasung, A. 2006. Government Initiatives on Employment generation in Nigeria: A Study of the National
Directorate of Employment. Selected Papers for the Annual Conference of the Nigerian Society (NES).
• Department for International Development (2010) The Country Report (Nigeria). DFID, United Kingdom.
• Gabadeen, W. O. and Raimi, L. (2012) Management of Entrepreneurship Education in Nigerian Higher
Institutions: Issues, Challenges and Way Forward. Abuja International Journal Of Education And
Management Sciences (ABIJEMS), 2, pp. 1-26.
• Ifedili, C. and Ofoegbu, F. (2011) Managing Entrepreneurship Education In Nigerian Universities, European
Journal of Educational Studies 3(1), ISSN 1946-6331, Ozean Publication.
• Ifedili, C. and Ofoegbu, F. (2011) Managing Entrepreneurship Education In Nigerian Universities, European
Journal of Educational Studies 3(1), ISSN 1946-6331, Ozean Publication.
• International Labour Organization (2007). Global Employment Trends. Geneva: International Labour
Office.
• National Bureau of Statistics (2009). Social Statistics in Nigeria. Abuja: The NBS Publication.
• National Bureau of Statistics (2011). Annual Social Economic Report. Abuja: The NBS Publication.
• National Bureau of Statistics. (2010). Statistical News: Labor Force Statistics No. 476. Abuja: The NBS.
• Ogwumike, F. Employment, Job Creation and Poverty Alleviation Chapter 5 of the book “ Olusegun
Obasanjo: The Presidential Legacy 1999-2007. Vol 1.
• Okebukola, P.A.O. (2004). Curriculum implementation in Nigeria, strategies for the 21st Century in Noah,
A.O.K., Shonibare, D.O., Ojo, A.A. and Olujuwon, T. (Eds) curriculum implementation and
professionalizing teaching in Nigeria. Lagos: Central Educational Services.
• Nigeria Vision 20:2020 Document (2009) Economic Transformation Blueprint. Federal Republic of Nigeria.
BIBLIOGRAPHY
“Paradigm Shift Thinking: Technical and Business Skills Acquisition as Panacea for unemployment in Nigeria.”
29