LAGOS The rising trend of joblessness with underemployment in the country which has become a threat to the economy is creating fears that it may trigger the next economic recession.
The unemployment situation in Nigeria, according to analysts is quite scary enough that if urgent measures are not taken to stem the tide, there would be a more serious economic recession before long.
It would be recalled that the NBS recently projected that the unemployment rate for Nigeria will reach 33.5 per cent before the last quarter of 2020, with consequences that are better imagined, if the trend is not urgently reversed.
Mr. Godwin Emefiele , the Central Bank of Nigeria (CBN) Governor, had expressed the fear that Nigeria risks relapsing into another economic recession.
He gave the hint that this time, it would be unemployment -driven consumer markets without money, though the economy has sustained positive growth in the post-recession period, it is no more than a jobless growth.
There is a wide gap between the aggregate economic numbers and the living conditions of the average Nigerian family. Growth in a few sectors of the economy tends to obscure stagnation and declines in other sectors. Continuing job losses is reckoned to be a major front for spreading the multiplier effects of economic difficulties in the country.
The job creating capacity of the private sector has continued to weaken, as growth in the economy is failing to secure even existing jobs. This is an indication that regulatory interventions in the economy arent registering sufficient speed to trigger a job generating growth.
The Nigerian economy needs to run on a new growth impetus in the post-election economy to recoup from considerable pre-election downturn. This hasnt happened one year after the elections. Policies to stem the tide of unemployment are yet to be placed in the front burner and the crowding population of jobless youth continues to grow, he said.
Meanwhile, business operators speak of major investment decisions suspended because of the 2019 election due to policy uncertainty.
The Economic Intelligence Unit of the Economist measured the future productive capacity of Nigerias economy and found a significant gross fixed investment deficiency.
This means Nigeria lacks current and future investments required to propel it to an accelerated growth path.
It is incapable of providing Nigeria with the investment impetus that will have the desired multiplier effect on output, the report said.
The nation suffered the consequences of governments failure to act in 2016. Greater consequences can be expected this time around, as the clock continues to thick with talks but no action, and that leaves the economy waiting on the wings of wait-and see on which it has hung for five years. The business world is again waiting on Nigeria to rebuild confidence needed to spur the inflow of job creating investment capital.