The Nigerian Labour Congress (NLC) has expressed skepticism over the latest unemployment statistics released by the National Bureau of Statistics (NBS), describing the figures as “fiction” and misaligned with the realities faced by Nigerians. This sentiment was echoed by the Organised Private Sector (OPS), which also criticized the report for failing to reflect the country’s economic conditions.
The NBS report claimed that Nigeria’s unemployment rate declined to 4.3% in the second quarter of 2024, down from 5.3% in Q1 2024 and 5.0% in Q3 2023. The data pointed to improvements in labour force participation, employment-to-population ratio, and a notable drop in youth unemployment, among other metrics. However, critics argue that these figures do not match the economic realities of business closures, rising costs, and diminishing consumer spending.
NLC: Figures do not reflect reality
Speaking on the report, Chris Onyeka, Assistant General Secretary of the NLC, dismissed the unemployment figures as a “voodoo document” and a fabrication. He accused the NBS of manipulating data to create a false narrative of economic recovery.
“Unemployment cannot be declining when factories are shutting down, manufacturing activity is decreasing, and inventories are rising due to low consumer spending. The reality on the ground paints a grimmer picture,” Onyeka said. He called on the NBS to substantiate its claims by identifying the sectors driving job creation, which, according to him, remain nonexistent.
Onyeka further accused the NBS of undermining its credibility by publishing statistics disconnected from the lived experiences of Nigerians. He likened the situation to “INEC-style manipulation” and suggested that public trust in the bureau has eroded.
Private sector voices concern
Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry (LCCI), criticized the methodology behind the NBS figures, describing the reported unemployment drop as a “technical improvement” rather than a reflection of economic realities. He argued that the current state of the economy, marked by struggling businesses and dwindling production, does not align with such optimistic data.
Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, echoed these concerns. He called for a review of the NBS methodology to better reflect the nuances of Nigeria’s job market. “Employment is about making a living. If engagements cannot guarantee a source of livelihood, we shouldn’t consider them as employment,” Yusuf argued, highlighting the struggles faced by small and medium enterprises.
Critics highlight methodological concerns
Experts have also raised questions about how employment is defined in Nigeria. For instance, the classification of individuals working as little as one hour per week as employed has drawn criticism for inflating employment statistics. Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria, noted that the informal sector’s expansion, driven by economic hardship, might explain some of the reported improvements. However, he argued that these jobs often lack stability and adequate income.
Egbesola also pointed to factors like inflation and government spending artificially boosting GDP figures without improving living standards. “GDP growth does not always translate to improved economic conditions for citizens, especially in an economy dominated by the informal sector,” he stated.
Call for action
The NLC and private sector stakeholders have called on the federal government to address the challenges stifling job creation and retention. They urged a focus on creating an enabling environment for businesses and a revision of statistical methodologies to ensure that data accurately represents Nigeria’s economic realities.
As skepticism grows over the NBS report, questions remain about the reliability of official data and the broader implications for policymaking in Nigeria.
