Nigeria has seen a sharp increase in unemployment over time, with a current estimate of 33%. All age categories in Nigeria are affected by a serious unemployment problem, with young people bearing a disproportionately high share of the burden. When people don’t have work, it makes life difficult for them and their household.
Note that this causes labor migration, as people leave the country in quest of better opportunities and income sources abroad. Unemployment is one of the key reasons why its citizens migrate their labour to other countries.
Nigeria’s economy has struggled to produce enough jobs to accommodate this expanding workforce due to the country’s high population growth rate, which causes a large number of job seekers to enter the labor market each year.
SMEs could be essential in reversing this trend and creating jobs, but they face challenges such as restricted access to capital, inadequate business support services, and a challenging business climate.
Additionally, highly qualified individuals leave Nigeria in quest of better opportunities abroad, depleting the country’s talent pool and widening the skills gap in critical industries.
It is important to emphasize that because of the interdependence of these factors, a multidimensional and all-encompassing approach is required to address labour migration and unemployment. To mitigate unemployment and labour migration in Nigeria, a variety of actions can be taken. A few of these include:
➢ Job creation and economic diversification: Nigeria is extremely vulnerable to variations in the price of oil because of its dependency on the fuel. Through the promotion of companies and sectors other than oil, economic diversification can boost job chances and reduce dependency on a single industry.
In Nigeria, it is crucial to increase the variety of employment options. The establishment and growth of various businesses and sectors can also encourage the emergence of new occupations and positions. There is a higher chance of employment for people when there are more businesses.
➢ Provision of adequate infrastructure: Infrastructure improvements have the potential to boost economic growth and draw in industries that can employ workers. For businesses to invest in and create jobs, they need a strong infrastructure that includes a dependable power supply, efficient transportation systems, and digital connection.
➢ Support for Small and Medium-sized Enterprises (SMEs): Encouragement of entrepreneurship and assistance for small and medium-sized enterprises (SMEs) can promote innovation, generate job opportunities, and boost economic growth.
Agriculture is a sector with a lot of SMEs. It has a great deal of potential to boost food security, minimize rural-urban migration, and create jobs. By giving farmers access to funding, cutting-edge farming techniques, and market connections, production can be increased and jobs created throughout the value chain of agriculture. Programs for training, mentoring, and access to financing and business development services also support these businesses.
➢ Changes in business policy: The development of many successful firms, especially SMEs, has been hampered by culpable policies and deregulation laws. Business owners, producers, and other market participants take advantage of policy gaps to perform arbitrary functions.
Therefore, reviewing and updating corporate policies, regulatory frameworks, and labour laws can help to foster a climate that encourages investment and job growth. In addition, employment prospects may increase as a result of streamlining administrative procedures, lowering corruption, and guaranteeing fair competition for all enterprises.
Although it is a difficult problem to solve, mitigating unemployment and labour migration is crucial for Nigeria’s economic progress. Another strategy for this development is to strengthen the institutions of the labour market, lower company costs by streamlining regulations and lowering taxes, improve the business environment, and improve education, safety, job accountability, and security.
By doing this, employment opportunities will be generated, and the general public’s professional development will be encouraged. Lastly, addressing societal issues, attracting investment, enhancing skill development and business climate should be the government’s main priorities for sustainable solutions.