The International Labor Organization (ILO) recently released a report which highlights global trends of employment. The report noted that the sub-Saharan African region which is characterized by high informal employment would experience a 3.1 percent employment growth in 20205. However, this growth will be counteracted by the displacement of workers as a result of the COVID-19 pandemic. In March, the ILO noted that 38 percent of the global workforce would be displaced6 as a result of the pandemic. The high informal nature of the workforce in Nigeria, as well as limited social protection, stands to increase population vulnerability. Within Nigeria, the unemployment rate which stood at 23.1 percent in Q32018 has been steadily rising from Q12016 (10.4 percent)7. The current economic lockdown in addition to volatile global commodities markets further stands to drive the unemployment rate upward. One way to mitigate the impact is through a committed national economic diversification drive. Also, social investment and intervention programs should be strengthened and institutionalized to ameliorate the effect of poverty and unemployment on citizens.
April 29, 2020
Nigeria Economic Update (Issue 15)
Related
Nigeria Economic Update (Issue 11)
Recently released report by the National Bureau of Statistics (NBS) indicates price increase of selected food items for the month of February 2017, relative to January 2017. Specifically, prices of the selected 24 food items ranged from N47.42 N1, 812 in January to N42.90 N1, 955.10 in February 2017. Average price of all selected items increased month-on-month by 2.7 percent to N540.05. Non-seasonal agriculture factors such as rising cost of crop production, imported products, and transportation continue to drive domestic food prices higher as domestic food supply contracts. This is also reflective of the high food inflation rate in February (18.53 percent) relative to 17.82 percent recorded in January 2017. Strengthening Nigerias crude oil production, supporting local agricultural production, and improving forex policies to straighten the naira remain critical in improving food supply and reducing inflation.