Text of an address by the Guest Speaker and Governor of Abia State, Dr. Okezie Ikpeazu, at the first annual lecture of Freedom Online at Sheraton Hotel, Ikeja, Lagos. Speech was read on his behalf by the deputy governor, Rt. Hon. Udo Oko Chukwu.
It gives me great pleasure to be here in your midst today to discuss this pertinent topic which is fundamental to the development and progress of our country. Today, we are discussing the scourge of unemployment in Nigeria and how it has become a monster which nobody seems to know how we are supposed to tame because it just keeps growing.
This intervention is not a fault-finding one or a blame-apportioning one but a solution-proffering one which seeks to identify the problem, highlight why we are where we are and suggest ways of getting us out of it.
PREAMBLE
Nigeria, which is the biggest black nation in the world, ought to have a very strong economy capable of employing almost all employable citizens. Unfortunately, the unemployment rate in Nigeria is alarming. It is quite a pity that a nation as blessed as ours with all good blessings such as arable lands, abundant natural resources among many others still battle with high unemployment rate.
Unemployment has become a socio-economic problem and since little or nothing had been done to put it on check, it has had adverse effects on our country and has led to criminal activities and other evil vices.
DEFINITION OF KEYWORD “UNEMPLOYMENT”
We will at this juncture, attempt to define the keyword we will be dealing with today which is “UNEMPLOYMENT”.
Nicholas [2000], said A person is unemployed if he or she is eligible for work but does not have a job.
Aguene [1991] defines Unemployment as the number of people in the population who are willing and offer themselves for employment but could not be employed because of lack of vacancies for them.
The most holistic definition came from Lampman, [1974] who posits that Unemployment is a socio-economic situation in which persons who are able and willing to work and also actively seeking for work have no work.
STATEMENT OF THE PROBLEM
The latest unemployment data released by the National Bureau of Statistics state that the number of Nigerians without jobs as at September 2016 was 31 million. The report noted that the economy has not been sufficient to meet the ever-growing labour market.
According to the report, unemployment and underemployment stood at 13.9 per cent and 33.6 percent respectively in the second and third quarter of 2016. Between January and end September, 2016, 3.7 million people reportedly entered the labour market with net jobs of only 422,135 created within that period, giving a shortfall of 3.2 million from quarter one to quarter three in 2016.
— So the question then becomes “what is the government supposed to be doing to solve the unemployment problem that they are not doing?
— Are there steps that can be taken to galvanise the entrepreneurial spirit in our young people which will lead to new businesses and ultimately, new jobs?
— What lessons can be derived from the Abia Model: The successful rebranding of Made in Aba Products which has led to increased orders for producers, increased capacity and ultimately, new jobs for the people?
FACTORS RESPONSIBLE FOR UNEMPLOYMENT
We will look at the various factors responsible for unemployment in Nigeria.
WRONG EDUCATIONAL POLICIES
We have what I would term a feed-mill educational policy in Nigeria. Our students are basically fed with information, which the lecturers want the students to regurgitate for them during exams. Thus, our students study to pass exams and not to actually learn what they are being taught.
Again, we have a rigid educational system which emphasizes passing exams as against acquiring knowledge and skills. The students are not taught life-enhancing skills, thus, you have an army of graduates who cannot do nothing for themselves because the objective has always been to go and get a certificate and once they do the basic minimum to acquire that certificate, they are satisfied. They are thus not useful to themselves or the society.
POOR POWER SUPPLY
Electric power is a minimum requirement for stimulation of the economy and ultimately, creation of jobs. No electric power means start-ups have to invest heavily in alternative power which eats into their capital and operational cost which makes it difficult to set-up small businesses and also to sustain their operations when they start running.
WRONG GOVERNMENT POLICIES
We unfortunately have a number of Government policies that are hostile to the thriving of businesses. From unfavorable fiscal policies to favouritism which creates a monopoly and stifles the growth of other businesses. We need to fix this if we must make progress.
CORRUPTION
This is a debilitating malaise in our system. It has eaten deep into every facet of our life. Money is earmarked to stimulate the economy but unfortunately, it gets diverted and the intendment is never met and the people suffer for it. We must address the problem holistically and frontally. A simple solution: There must be consequences for corrupt actions. Too many people have raped our country and proceeded to live off their proceeds of corruption without consequences. There must be consequences for corrupt enrichment.
LACK OF SKILLS
A recent survey by DataNG, a private data-gathering agency says that the problem may not be about availability of jobs but the availability of skilled manpower to take-up those jobs. Those who are in Human Resources will bear me witness that the most difficult period in their job is the recruitment stage. The torture of interviewing people with elegant curriculum vitas only to discover that they are not worth more than the paper they were typed on. Graduates of Polytechnics and Technical Courses know next to nothing about the course they studied. Engineering graduates do not know the basic rudiments of engineering. Ditto Accounts and other professional areas. This needs to be addressed.
NEGLECT OF FARMING/UNATTRACTIVENESS
Ask the average young person in Nigeria today if they have considered farming as a source of employment and they will look at you in a funny way. Farming is seen as what those in the rural areas and old people do. On the contrary, a lot of jobs can be created in the agricultural sector if well managed and made attractive with mechanization and new inputs.
GHOST WORKERS HOLDING REAL JOBS
If you take a statistic of the number of available jobs held by ghost workers, you will understand why we have this problem. The ghosts need to fade away so that real people can take up these jobs and reduce this scourge.
DIFICULTY IN ACCESSING CAPITAL FOR BUSINESSES
The most challenging hurdle every new business faces today is accessing capital to start the business. We hear of all kinds of intervention funds from different Federal Government Agencies but how many of the intended beneficiaries actually get them? Banks lend at over 20% intrest rate and there is no way a young start-up can survive relying of bank loans as primary source of capital.
DANGERS OF FAILURE TO TACKLE UNEMPLOYMENT
I will proceed to highlight some of the dangers we face if we fail to address this challenge.
HIGH CRIME-RATE
This should be apparent to all without much adumbration. An idle mind they say is the devil’s workshop. When an able-bodied youth is unemployed, with the need to keep body and soul together, they engage in criminal activities and other anti-social behaviours and generally become a menace to society.
UNSKILLED YOUTH POPULATION
Because they are unemployed, our youths loose the opportunity to learn critical skills and experiences such that we have an army of unemployed people with little or no skills.
FRUSTRATION
A long period without a job leads to frustration which in-turn is a danger to society at large.
EASY AVAILABILITY OF POLITICAL THUGS
The truth is that if a youth is meaningfully engaged, you will not be able to convince him or her to engage in political thuggery which is another problem on its own. I know I am a politician and this state of affairs is supposed to be to the advantage of the political class but it posses a more potent long-term problem.
CIVIL UNREST
Closely linked to all of the above is civil unrest. God forbid the day our teaming army of unemployed decide to revolt and rise against us, the effects will be devastating.
HIGH SUICIDE RATE
When a man is unemployed and he has lots of bills staring him in the face and no hope, suicidal thoughts set in and they conclude that they are better off dead than alive. Afterall, dead men don’t pay bills.
DIVORCE
A large percentage of marriage break-ups are caused by the inability of the supposed bread-winner to provide for the family. The wife will usually look elsewhere for the meeting of her needs which in-turn, leads to a high rate of divorce.
THE ABIA EXAMPLE
Distinguished ladies and gentlemen, I will at this juncture share with us what we have been able to do in Abia State to stem this tide and create jobs for our people since we came on board.
ONE-STOP SHOP/PPP
In Abia State, we have built a One-Stop-Investment Centre which is geared towards easing the process of starting a business in Abia State for investors. We have a very short period of providing Certificates of Occupancy and other business requirements so that the businesses can start and employ our people.
CBN ENTREPRENEURIAL DEVELOPMENT CENTRE FOR SOUTH EAST
Abia State is currently playing host to the Central Bank of Nigeria Entrepreneurship Development Centre which provides training and empowerment for youths in the South-East. As the host state, naturally, our youths have had the lion share of this programme and quite a number of them have become meaningfully engaged through the programme.
PIONEERING THE FEDERAL GOVERNMENT SOCIAL INTERVENTION PROGRAMMES
In Abia State, we do not play politics of political party. Politics ended with our assumption of office and we are in governance mode. We have since partnered with the Federal Government in a number of areas and we are reaping the dividends. One of which is the Federal Government Social Intervention Programme through which we have provided opportunities for our people.
EDUCATION FOR EMPLOYMENT (E4E)
We are running a programme in Abia State which has seen to the emphasizing of Technical and Vocational Education in our Secondary Schools so that students leaving secondary schools in Abia State will be imbued with skills such that even when they choose not to attend University, they will have life-sustaining skills.
CASHEW REVOLUTION IN 17 LGAs
An illustrious Abian, Chief Chris Odinaka Igwe has taken over the Cashew Plantations in Abia State which were lying fallow for a long time. He is bringing in new species and replicating the plantaion scheme in the 17 Local Government Areas which is targeted at creating about 100,000 jobs for our people.
AGRICULTURE
We are massively revolutionalising agricultural practices in our state by introducing tractors and other mechanization inputs. We have partnered with the University of Agriculture and Roots Crop Research Institute in our State to cultivate high-yielding species of different crips which provide quicker maturity-periods and higher yields. We have engaged over 200,000 Abians in our agricultural revolution.
MADE-IN-ABA & ENTIRE VALUE CHAIN
Everyone is aware of the massive work we are doing to promote patronage of Made In Aba goods. This sustained advocacy has led to increased patronage, increased capacity on the part of the producers and ultimately, hiring of more hands to keep up with the high orders in the shoes, leather and garment and support services sector of Abia State.
THE WAY FORWARD
Having identified the problems and highlighted what we are doing in Abia State, permit me to proffer some solutions that can get us out of this quagmire and tame the monster of unemployment.
REFORM THE EDUCATION SECTOR
We must start teaching practical skills in our schools, secondary and tertiary. Our Curriculum should be revisited to introduce fit-for-purpose courses.
GOVERNMENT INCENTIVES FOR NEW BUSINESSES
Government should encourage Tax waivers for new businesses and certain categories of businesses to help them thrive. Governments at all levels should also emphasize friendly investment policies, ease of doing business and general deliberate policies geared towards helping businesses grow and thereby employ workers.
FIX THE POWER SUPPLY CONNONDRUM
It goes without saying. We need to fix our power situation. This will create lots of small jobs and reduce cost of running businesses leading to more funds for expansion.
WEED OUT GHOST WORKERS
In Abia State, we have saved about half a billion Naira in our wage-bill since we came on board by weeding out ghost workers. This will create room for employing actual workers.
MAKE AGRICULTURE ATTRACTIVE TO YOUTHS
Encourage mechanization and funding for agricultural startups while ensuring access to fertilizer, herbicides and other agricultural support inputs.
MAKE CAPITAL EASY TO ACCESS FOR STARTUPS
Government should ensure lending to start-ups at single-digit interest rates and ensure that intervention funds get to the real entrepreneurs.
Distinguished ladies and gentlemen, in conclusion, it is my belief that every monster can be tamed, including the monster of unemployment. However, government has to play a lead role in creating opportunities for employment. Unemployed people should also make an effort to acquire new skills that will increase their employability chances.
Finally, all hands need to be on deck to help tame the monster of unemployment.
I thank you all for listening and may God bless the Federal Republic of Nigeria.