Can Nigeria tap informal sector to address unemployment gap?
Data by the National Bureau of Statistics shows that Nigeria’s unemployment rate rose to 5.3 per cent in the first quarter of 2024 from 5 per cent in the third quarter of 2023. Meanwhile, a report by Jobberman Nigeria says that 18 per cent of surveyed business owners left formal jobs to start their business with 80 per cent of them attributing low salaries as the reason for leaving their formal jobs. Oreoluwa Boboye, the CEO of Jobberman Nigeria, joins CNBC Africa to unpack these reports.
Wed, 02 Oct 2024 11:37:47 GMT
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AI Generated Summary
- The rise in Nigeria's unemployment rate to 5.3 per cent underscores the pressing need to explore the potential of the informal sector in addressing the country's economic challenges.
- The informal sector offers opportunities for innovation, entrepreneurship, and job creation. Embracing technology, upskilling workers, and providing infrastructure are essential for unlocking the sector's full potential.
- Streamlined regulation and incentives are key to supporting businesses in the informal economy, fostering ease of doing business, and promoting entrepreneurship in Nigeria.
Nigeria's economy has been grappling with rising unemployment rates, with the National Bureau of Statistics reporting a rise to 5.3 per cent in the first quarter of 2024. This trend has been exacerbated by factors such as job cuts, low salaries, and harsh economic reforms. In a bid to address these challenges, Oreoluwa Boboye, the CEO of Jobberman Nigeria, emphasizes the importance of tapping into the country's informal sector. The informal sector has the potential to serve as a viable solution to the unemployment gap and drive economic growth in Nigeria. Boboye highlights the need for a paradigm shift in mindset and increased support for businesses operating in this sector. He underscores the significance of leveraging technology, upskilling workers, and providing infrastructure to bolster the informal economy. Furthermore, Boboye calls for streamlined regulation and incentives to facilitate the ease of doing business and promote entrepreneurship. Addressing issues such as scale gaps, infrastructure deficits, and the perception of dignity in labor are crucial steps towards harnessing the full potential of Nigeria's informal sector. By empowering small businesses and entrepreneurs, Nigeria can pave the way for a more resilient and thriving economy.
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