A Quick Look At Nigeria's 2023 unemployment index

According to Global audit and tax advisory firm, KPMG, Nigeria’s unemployment rate is expected to rise to 40.6% as compared to 2022’s 37.7%. This was detailed in its recently published International Global Economic Outlook report – H1 2023. KPMG stated that unemployment is expected to continue to be a major challenge in 2023 due to the limited investment by the private sector, low industrialization, and slower than required economic growth and consequently the inability of the economy to absorb the 4-5 million new entrants into the Nigerian job market every year.

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Also stated in the report are the expectations for Nigeria's GDP to continue to grow at a relatively slow pace of 3% in 2023 due to the slow pace of economic activity that typically characterizes periods of political transition in Nigeria.

Youth Unemployment Challenges For The New Tinubu Administration

KPMG also stated that the incoming administration will face a deeply ingrained tough environment, which will be characterized by weak and slow economic growth as well as challenges in the foreign currency market, which could raise unemployment in the country.

Effect Of Fuel Subsidy Removal On Nigerian Workers

Unfortunately, the new president of Nigeria, Asiwaju Bola Ahmed Tinubu declared during his inauguration speech that "fuel subsidy is gone". The big question is what is the fate of the Nigerian worker? How will this fuel subsidy removal affect them? According to KPMG, fuel subsidy removal would also mount pressure on domestic prices thereby increasing the overall cost of living and cost of doing business.

President Tinubu Promises Nigerian Youths 1 Million Jobs In The Digital Economy

Despite the forecast about an increased rate of unemployment in Nigeria by KPMG, the newly sworn-in Nigerian president has assured that his administration must create meaningful opportunities for youths.

In President Tinubu's words:

"We shall honour our campaign commitment of one million new jobs in the digital economy."

"Our government also shall work with the National Assembly to fashion an omnibus Jobs and Prosperity bill."

"This bill will give our administration the policy space to embark on labour-intensive infrastructural improvements, encourage light industry and provide improved social services for the poor, elderly, and vulnerable."

The president during his inauguration speech also promised to promote domestic manufacturing and make electricity more accessible which has the possibility of helping Nigeria achieve higher GDP growth and significantly reduce unemployment.

In his words:

"We intend to accomplish this by taking the following steps:

First, budgetary reform stimulating the economy without engendering inflation will be instituted."

"Second, industrial policy will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency."

"Third, electricity will become more accessible and affordable to businesses and homes alike. Power generation should nearly double and transmission and distribution networks improved. We will encourage states to develop local sources as well."