The demand for comprehensive solutions that tackle the fundamental issues of unemployment in Nigeria is increasing. This is as the Federal Government considers an initiative that provides monthly stipends to unemployed graduates.
While aimed at alleviating financial strain on young individuals who have invested time and resources into their education, experts emphasize that such an initiative must extend beyond financial assistance.
They argue that addressing corruption, improving industrialization, and ensuring the right beneficiaries receive support are critical to its success.
The National Bureau of Statistics reported that the Unemployment rate increased to 5.3% in the first quarter of 2024 from 5.0% in the third quarter of 2023.
The data showed the unemployment rate among persons with post-secondary education was 9.0% and 2.0% among persons with postgraduate education in Q1, 2024.
It also showed the share of youth aged between 15 to 24 who have completed their education but are neither pursuing further education nor engaged in employment or training (NEET) in Q1 2024 was 14.4%, up from 13.7% in Q3 2023. It showed more females in NEET, with 15.9% compared to 15.5% in Q3 2023.
The plight of unemployed graduates is however not a new phenomenon, and past attempts to address this issue, such as Nigeria’s N-Power program, offer valuable insights. Launched as a social intervention scheme, N-Power aimed to empower young Nigerians by providing job training and a monthly stipend.
While it successfully supported many participants in gaining skills and experience, it also faced criticism for its short-term focus and lack of permanent job placements.
Globally, various countries have implemented stipend programs with differing levels of success.
In 2004, the South African government launched the Expanded Public Works Programme (EPWP), which is said to be one of the ways the Western Cape Government is working to reduce the levels of poverty and unemployment in the province. Through this, it ensures that unemployed people receive a stipend for any work they have completed as part of the EPWP amongst others.
Other African Countries like Tanzania, through its Youth Employment Action Plan, and Kenya through its National Youth Service program have also adopted these initiatives.
Recently, Algeria’s president, Abdelmadjid Tebboune says the government will introduce unemployment benefits for young adults between ages 19 and 40, as the country struggles with a jobless rate of almost 15% of its total population. He said the payment would begin in March 2024, and those eligible will collect payments of about $100 a month, as well as some medical benefits until they find work.
By examining these models alongside the lessons learned from N-Power, experts say Nigeria can better understand the potential implications of the proposed stipend initiative for unemployed graduates.
While the initiative holds promise, it raises critical questions about its effectiveness and sustainability in fostering long-term job placement.
Auwal Musa Rafsanjani, the Executive Director of CISLAC emphasized that while the stipend initiative for unemployed graduates is good, it must be part of a broader strategy that includes improving industrialization, enhancing educational quality, and addressing societal factors like family planning to effectively combat unemployment and poverty in Nigeria.
“The government needs more proactive measures in terms of ensuring that the factories and industries improve to create jobs for Nigerians. It is only when Nigerians are working that they can deal with personal safety and poverty
“It is about government taking very drastic measures to block leakages, to ensure more productivity in the country and to ensure that those areas where we are necessarily wasting resources are blocked. And more importantly, of course, they should not allow corruption to continue to undermine all the efforts of the government.
He further pointed out that quality education is essential for preparing graduates for the job market, as it underscores the importance of aligning educational outcomes with market needs.
“If you are producing people that cannot be useful to different sectors in the economy, getting jobs for them will become very difficult
“We must also take a bold decision to deal with issues of family planning. The more you produce children that you cannot take care for, the more you create difficulties and challenges”
Gerald Ekwunife, a Lawyer and analyst noted that while the Federal Government’s initiative to provide monthly stipends for unemployed youth is a positive step, its success hinges on proper implementation, addressing corruption, and ensuring that the right beneficiaries receive the support.
“It will indeed be a fantastic social security scheme if the president can muster the willpower and financial resources to implement this policy. Nigeria has never been short on coming up with fantastic policies, but the challenge lies in effective implementation.
“If the president can find a way to implement this policy strictly, it could go a long way in creating significant opportunities for our youth. We shouldn’t get hunky-dory right now; it is in the implementation that the real challenge lies.
“This policy can turn the tide of creating jobs and addressing food scarcity if implemented correctly. The real challenge lies in finding the right people to implement the policy effectively.
“We must ensure that the right persons are appointed to implement this policy to prevent corruption and mismanagement.”
Princewill Anyalewechi, an Education Analyst expressed scepticism about the Nigerian government’s ability to implement the policy effectively and highlighted concerns about corruption, and tribalism. He also noted that the high unemployment rate can be tied to the lack of job replacement for retirees.
“It’s a noble policy, and it helps to alleviate the suffering of the youth in Nigeria. As a graduate unemployed, and they’re grown up… you have passed the stage of leaning on your parents.”
“If the government can implement it accordingly, it’s a noble policy. My fear is, is there anything the government has proposed that is done accordingly?
“Tribalism in Nigeria may not allow that thing to succeed. Most of their projects in Nigeria is tilted towards the north, central region. Those of them that are not qualified, most of them that are not educated, will be the ones whose names will be tilted” the willingness of the Agency to access funds and provide an enabling environment for business.
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