PAUL OKAH takes a look at the rising unemployment in the Federal Capital Territory (FCT) and other parts of the country, amidst inflation and wonders if there’s any hope for the citizens that struggle daily to survive in the face of Covid-19 pandemic and others.
Months ago, Nigeria was declared the poverty capital of the world, thus overtaking India as a result of growing unemployment, with inflation arguably leading to the declining value of the naira and private and public workers complaining of the lack of increase in salaries.
Also, while many graduates have stayed years at home without securing civil service or meaningful jobs, those who took to businesses to cater for their families have often complained of not making many profits as a result of rising inflation.
NBS’ statistics
The Consumer Price Index (CPI) measures the average change over time in prices of goods and services consumed by people for day-to-day living, so, on Thursday, April 15, in its CPI report for March 2021, the National Bureau of Statistics (NBS) revealed that inflation rate increased in March by 0.82 per cent to 18.17 per cent from 17.33 per cent in February, saying increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.
The report stated in part, “The urban inflation rate increased by 18.76 per cent (year-on-year) in March from 17.92 per cent recorded in February, while the rural inflation rate increased by 17.60 per cent in March from 16.77 per cent in February. On a month-on-month basis, the urban index rose by 1.60 per cent in March, up by 0.02 per cent compared to the rate recorded in February, while the rural index also rose by 1.52 per cent in March, up by 0.02 per cent, compared to the 1.20 per cent rate recorded in February.
“Composite food index rose by 22.95 per cent in March compared to 21.79 per cent in February. On a month-on-month basis, the food sub-index increased by 1.90 per cent in March, up by 0.01 per cent from 1.89 per cent recorded in February. The rise in the food index was caused by an increase in prices of bread and cereals, potatoes, yam and other tubers, meat, vegetables, fish, oils and fats and fruits.
“However, the highest increase was recorded in prices of passenger transport by air, medical services, miscellaneous services relating to the dwelling, passenger transport by road, hospital services, pharmaceutical products and paramedical services. Others were vehicle spare parts, dental services, motor cars, maintenance and repair of personal transport equipment and hairdressing salons and personal grooming establishments.
“For state profile, the NBS stated that in March, all items inflation on year on year basis was highest in Kogi at 24.51 per cent, Bauchi 22.24 per cent and Sokoto 20.70 per cent, while Imo at 16.08 per cent, Kwara 15.34 per cent and Cross River at 14.45 per cent recorded the slowest rise in headline year on year inflation.
“For food inflation on a year on year basis, in March, it was highest in Kogi at 29.71 per cent, Sokoto 7.02 per cent and Ebonyi 26.59 per cent, while Abuja at 20.10 per cent, Kebbi 19.98 per cent and Bauchi at 18.61 per cent recorded the slowest rise in year-on-year inflation.
“On month on month basis however, March food inflation was highest in Rivers at 3.52 per cent, Niger 2.92 per cent and Gombe 2.85 per cent, while Zamfara at 0.51 per cent recorded the slowest rise in month on month food inflation, with Yobe and Kebbi recording price deflation or negative inflation.”
Nigerians groan
In a chat with Blueprint Weekend, a hair dresser in the Jahi area of the FCT, Rosemary Adekunle, said she graduated from the University of Ilorin in 2015, but has been unable to secure a civil service job after completing the mandatory one-year NYSC scheme and was, therefore, forced to acquire a skill.
She said, “I don’t see any future in Nigeria if things continue the way they are. Many people are frustrated in this country because of unemployment, government policies and many things militating against growth. Personally, I searched for civil service jobs for years after graduation, but have not been lucky so far.
“In fact, I had to learn hairdressing to keep body and soul together. As you can see, there is not much difference between me and others complaining about unemployment, because I don’t make much. The little I make goes into buying food and products for the shop, which are also costly. If you go to the market today, the prices of food items and hair-making products have risen so high that N10, 000 cannot buy you anything. Honestly, I am just frustrated and living a little above the poverty line.”
Similarly, a worker in a private firm in Gwarinpa, Mr. Osita Chinedu, said he cannot classify himself as employed as he has not been paid salary since this year.
“I won’t lie if I say that unemployment is the reason for many ills in society today, including insecurity, corruption and others. I can’t even classify myself as being employed because the company I am supposed to be working with is yet to pay me since this year began.
“Apart from non-payment of salaries, the prices of food items have doubled in the market. Pray, how does the government want citizens to survive without jobs and the rising inflation? At this point, I won’t blame those looking for different means of survival, whether legal or illegal. Only those in politics are enjoying while many others contemplate suicide as a result of unemployment, poverty, etc,” he said.
Experts’ take
On April 18, according to the News Agency of Nigeria (NAN), against the backdrop of the nation’s spiralling inflation rate, a former president, Association of National Accountants of Nigeria (ANAN), Dr. Samuel Nzekwe, called on the federal government to make concerted efforts to provide an enabling environment for manufacturers to thrive. He said it was only when manufacturers were producing more goods and services, under a favourable environment that the nation’s inflation rate could drastically “come down.”
Nzekwe appealed to the federal government to also intensify efforts at providing the enabling environment, adequately serviced by stable power supply, good road network and adequate security. He said there’s the need for the government to accord top priority to security because some farmers have been unable to go to their farms to cultivate.
“The economy is currently not producing at the optimal level due to the numerous challenges confronting the country, and this is a reflection of the continuous increase in the inflation rate. There are no productive activities in the country because fewer goods were being purchased amid lack of much money in circulation,” he said.
Similarly, on April 15, in a reaction to the report by the NBS, the director-general, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Ambassador Ayoola Olukanni, called for an urgent action to address the underlying causes of the nation’s current inflationary trends.
Olukanni said the call was pertinent to enable the nation to achieve the 2.5 per cent projected growth for the year, saying that the most significant underlying cause to address was the issue of insecurity and its attendant impact on agricultural production, especially by smallholder farmers.
He said further that the current low productive capacity in various sectors of the economy were also due to the recent massive power outages and consequential effect on electricity supply to homes and industries. He stressed the need to expedite action on the energy component under the Economic Sustainability Plan, as part of the strategic options designed to address the energy crisis.
“NACCIMA, on several occasions, has warned that the upward trajectory of inflation is what will happen if action is not taken to address underlying causes of the trends. Steps must be taken by the government to arrest the trend. The most important is the issue of insecurity, because business and productive activities only thrive in a safe and secured environment. An enduring solution must, therefore, be found to the problems of banditry and other sources of insecurity across the country.
“To address food inflation, there must be significant improvement in road infrastructure, to facilitate movement of farm produce and goods across the country. This is to strengthen the food supply chain and reduce cost of transportation from the farm to the market.
“More support should also be given to the SMEs in the agribusiness sector as they are important in the quest to ensure food security and combat food inflation. Movement of goods within the country should also not be disrupted by incessant roadblocks across our highways,” he said.
