A recent Labour Force Survey by the National Bureau of Statistics (NBS) reveals that Nigeria’s unemployment rate has reached 26.8%, representing a significant portion of the country’s working-age population.
In contrast, 73.2% of the working-age population is employed, reflecting a drop from 75.6% in the third quarter of 2023. This downward trend raises concerns about the state of Nigeria’s labor market and the economy.
The NBS explains that the employment-to-population ratio measures the proportion of employed individuals relative to the total working-age population.
The latest data paints a troubling picture of Nigeria’s economic situation, with widespread business closures, especially among small enterprises, exacerbating the country’s economic challenges.
The report highlights a decline in the self-employed sector, with the proportion of self-employed individuals—mostly small business owners—dropping from 86% in Q3 2023 to 84% in Q1 2024.
Small businesses, which make up 86% of Nigeria’s workforce, have been hit particularly hard. The Association of Small Business Owners of Nigeria reports that around 8 million small businesses have closed in the last 18 months, with many owners facing severe financial stress, hospitalization, or even death.
The ongoing crisis points to an urgent need for economic recovery and support for struggling entrepreneurs.
Government policies, including the fuel price hike and the naira’s devaluation, have worsened the economic strain on Nigerians. Despite government promises to tackle these issues, inflation has surged to unprecedented levels, with food prices climbing sharply.
Experts have called on the government to implement measures that support small businesses, such as income support programs, to help mitigate the impact of these challenges.
