In a startling revelation, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has disclosed that a staggering 81 per cent of employed Nigerians are working in non-productive sectors, posing significant concerns about the country’s economic landscape.
Addressing attendees at the Africa Trade and Investment Summit on Thursday, Oyedele pointed out that while Nigeria boasts a relatively low unemployment rate of 4.2 per cent, the majority of the workforce is not making meaningful contributions to the economy.
Drawing parallels with the United Kingdom’s employment figures, he questioned the paradox of high employment rates coexisting with one of the world’s highest poverty rates, surpassing 113 million people living in multidimensional poverty as of 2022.
“About 81 per cent of people in employment in Nigeria are engaged in a non-productive sector of the economy. They are doing things that do not add value in the real sense of the world. That is the reason why our unemployment rate, even though it’s just 4.2 per cent, similar to that of the UK, our poverty rate is still one of the highest in the world,” Oyedele stated.
Highlighting the urgency to create decent jobs, Oyedele suggested that the situation has likely worsened since the 2022 data, considering subsequent economic events like subsidy removal and naira floatation.
Commenting on the broader economic challenges faced by the country, Oyedele emphasised that macroeconomic issues are influenced by political dynamics and the nation’s policy environment.
While acknowledging the limited control over global economic factors, he stressed the critical role of a change in policy direction to effectively manage Nigeria’s economic situation.
“We cannot control what Russia and Ukraine are doing. We cannot control what happens in Gaza. Just making it easy for small businesses to earn a meaningful living, it is easier for manufacturers to produce,” Oyedele added, underscoring the significance of the Presidential Fiscal Policy Committee in coordinating monetary, fiscal, and trade policies.
Despite the National Bureau of Statistics reporting a 4.2 per cent unemployment rate, concerns have been raised about the methodology.
The NBS considers workers who engage in low-productivity jobs for a few hours as employed, prompting criticism about the accuracy of the figures.
