NEWS: NIGERIA -MAN’s alert on unemployment

The Manufacturers Association of Nigeria (MAN) has raised the alarm that many more Nigerians would be thrown into the labour market as many more industries and businesses are folding up as a result of multiple taxes by governments across the country.

MAN also said that the economic uncertainty in the country, high cost of borrowing, poor infrastructure, lack of power, fuel shortage put jobs of Nigerians on line.

The problem has equally caught the attention of former President Olusegun Obasanjo, who had at the 10th anniversary and convocation ceremonies of the Tai Solarin University of Education, Ijebu-Ode, Ogun State, likened the unemployment situation in the country to a time bomb that is waiting to explode. Obasanjo also cautioned the government on the consequences of rising unemployment. Available statistics show that about 24 million Nigerians are jobless.

We commend MAN and the former leader for raising the alarm over the increasing rate of unemployment, especially among the youths. No doubt these warnings should worry the government and other stakeholders in view of the glaring linkage between unemployment and youth restiveness.

The various governments across the country should do something to urgently curb multiple taxes in the country. The need to increase internally generated revenue (IGR) should not be used as an excuse to impose multiple taxes on manufacturing companies.

This is not the first time that MAN, Obasanjo and other notable Nigerians had expressed concerns on the dangers of increasing unemployment situation in the country. Therefore, we expect the government and others concerned to take concrete measures to create jobs for the youths. Government should not dismiss these warnings over the increasing unemployment among Nigerians. We say this because the high unemployment figures are indeed worrisome.

We believe that these alerts will spur the government into taking concrete action that will frontally address the increasing level of unemployment in the country.

While so many factors are responsible for the rise in unemployment figures, there is no doubt that the insurgency in the North-East might have exacerbated the situation. Government should also intensify its efforts to crush the insurgency and rebuild the economy of the war-torn region now that its December deadline to do so is at hand.

Government should also address the worsening road and power infrastructure which have contributed to the closure of some factories and the relocation of some industries to neighbouring countries in West Africa.

It must also fix the dilapidated road and obsolete power infrastructure in all parts of the country to stimulate economic activities, as well as embark on massive construction of railways that will link all parts of the country to reduce the present pressure on roads.

For the country to attain optimal sufficiency in power generation, which will rub-off on industrialization, Nigeria’s generating capacity must move up from the present 4,000mw to 50,000mw. It is unfortunate that the country has not been able to use its oil revenue to grow the economy.

The high cost of borrowing, which soars as high as 30 per cent in some cases, is prohibitive and should be drastically reduced to a single digit. If the borrowing rate is not reduced, it will be hard for businesses and manufacturers to break even in a competitive business environment.

For our manufacturers to be competitive, they must think out of the box and find ways to synergize with other related ventures to cut costs and harness resources.

Government must see the private sector as a vital partner in progress and collaborate with them in policy planning and execution to achieve the needed industrial development and job stability.

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