The future of work: Leveraging the power of 180m – part 1

Out of Nigeria’s 78.5 million economically active people, 38.2 million (48.7 percent), less than half, are women, according to the Nigerian Bureau of Statistics (NBS).

At the end of June 2016, 10.5 million people, representing 13.3 percent of Nigeria’s labour force, were unemployed, as against 4.9 percent and 5 percent unemployment rates for the United Kingdom and United States respectively. Of 10.5 million unemployed Nigerians, 5.8 million, well over half, are female. Female unemployment at 15.3 percent is far worse than 11.5 percent for men.

When one combines the high unemployment rate with double-digit inflation and Gross Domestic Product (GDP) contraction, the picture is depressing. Looking at the unemployment picture from the perspective of women is even more depressing. Fifteen point three percent female  unemployment  rate versus 11.5 percent for  men reflects a 33 percent gender gap i.e. Nigerian women are 33 percent more likely to be unemployed than  Nigerian men.

According to the World Economic Forum’s 2015 Global Gender Gap Index, Nigeria ranked 125 out of 145 countries, with a gender gap of 18.9 percent. Female economic inactivity increases the risks to the welfare and education of children, particularly in a recession.

To address Nigeria’s gender gap would require that the economy generate 620,000 more jobs for women than men. But, how likely is this given Nigeria’s existing circumstances? Virtually all major economic sectors in Nigeria are in recession: manufacturing, construction, trade, transport, hotels and restaurants, finance and insurance, real estate and government. The only exceptions are agriculture and telecommunications.

For unemployment to stabilize, Nigeria needs to create at least 4 million jobs annually. However, we currently create about 1.3 million, most of which are in the informal sector. In its 2016 Fiscal Budget, the Federal Government of Nigeria earmarked N1.59trillion for infrastructure/capital expenditure.

Ordinarily, this would raise hopes that several jobs would be created and that unemployment would ease. Unfortunately, with Nigeria in a recession, the proposed budget cannot be fully funded; implying that those jobs will not materialise.  Also as part of this year’s budget, the Federal Government of Nigeria announced plans to create 500,000 teaching jobs. Even if this happened as planned, it would barely scratch the surface of a 10.5 million unemployment problem.

The situation is desperate. The largest companies in the country are reeling in the throes of the recession; with the attacks on oil installations in the Niger Delta, oil companies are laying off workers; 26 out of 36 states are unable to pay salaries. It is clear that we need a totally different attitude and approach to employment and personal economic growth. In the midst of chaos, there are always opportunities.

 Innovation and Information Technology: Adapt or die

Innovation and IT are now like the very air we breathe. IT is an enabler in all spheres, and those who   achieve success today win through   successful deployment of disruptive technologies.  By seizing income generating and job creation opportunities that are made possible by technology, we can transform from complainers to solution providers.

Technology is the game changer and there are several awesome examples.  For instance, take Life Bank, an IT company founded by Temi Giwa to supply blood to hospitals. Giwa is not a medical practitioner; she simply decided to solve a problem in the medical industry – patients dying due to lack of blood. First, she set up a non-profit organization to supply blood to hospitals. This required complete reliance on donors and donations were not always forthcoming.  Therefore, Giwa rethought her   model and rebranded Life Bank as a business. She integrated technology into her operations, so that patients and hospitals in need of blood simply make an order through the company’s website or app, and blood is supplied. Giwa has created a sustainable business model while doing a social good and creating value in the process.

Technology is rapidly changing traditional business models.

Uber, the world’s largest taxi company, owns no vehicles;

Facebook, the world’s most popular media owner, creates no content;

Alibaba, the most valuable retailer, has no inventory;

Airbnb, the world’s largest accommodation provider, owns no real estate.

All these businesses are enabled by technology and are geared to deliver excellent customer experience.