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COVID-19 worsens unemployment in Q2 – Uwaleke

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Uche Uwaleke, Professor of Finance and Capital Market, on Friday said the country’s unemployment rate in the second quarter (Q2)of 2020 was worsened by the negative impact of COVID-19.

Uwaleke, a Professor of Finance and Capital Market at the Nasarawa State University, disclosed this in an interview with the News Agency of Nigeria (NAN) in Lagos.

He was reacting to the unemployment rate figure just released by the National Bureau of Statistics (NBS) after a 20-month interval.

The NBS said the unemployment rate rose to 27.1 per cent in the second quarter of 2020 from the 23.1 per cent recorded in third quarter (Q3) of 2018.

The NBS, in its ‘Labour Force Statistics: Unemployment and Underemployment Report’ released on Friday, said underemployment rate in the country increased from 20.1 per cent in Q3 2018 to 28.6 per cent in Q2 2020.

“For the period under review, Q2 2020, the unemployment rate among young people (15-34 years) was 34.9 per cent, up from 29.7 per cent, while the rate of underemployment for the same age group rose to 28.2 per cent from 25.7 per cent in Q3 2018,” it said.

Reacting to the figures, Uwaleke said the unemployment situation was worsened by the negative impact of COVID’19 on the economy which affected supply chains and resulted in job losses.

“The increase in unemployment rate in Q2 of 2020 should be expected for an economy where the rate of growth in GDP is lower than the population growth rate.

“This is particularly so when the major growth driver, which is the oil sector contributes less than 10 per cent of GDP and employs less than five per cent of the working population.

“It is equally not surprising that youth unemployment at 28.2 per cent, according to the NBS is on the rise, considering the increasing number of graduates who enter the labour market every year.

“It is not that the government’s efforts in the area of job creation is not yielding results.

“The challenge stems more from the fact that the rate of job creation in the economy is not commensurate with the rate of expansion in the labour force,” Uwaleke stated.

On the way forward, he called on the government to ensure a conducive business environment for the private sector to drive employment generation.

“This will entail massive investment in enabling infrastructure such as power, transport, housing and broadband technology.

“The effort of the government and the Central Bank of Nigeria in the area of incentivising the agriculture value chain which has a lot of potential for job creation is commendable.

“However, I think there is still room to scale up interventions in this area,” he noted.

Uwaleke stressed the need to tackle insecurity in the northern part of the country to promote businesses and employment opportunities.

“The need to tackle insecurity, especially in the Northern part of the country which is stifling businesses and employment opportunities cannot be overemphasised,” he added.

Uwaleke said youth unemployment and underemployment would be addressed to a large extent if more emphasis was paid to skill acquisition through the setting up of model skill acquisition institutions in all the states of the federation.

“The state governments can take up this challenge in partnership with the private sector,” Uwaleke stated. (NAN)

Economy

FGN Poised To Dismantle Kidnap Economy – General Laka

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From Lateef Taiwo

The Coordinator, National Counter Terrorism Centre, Office of the National Security Adviser (NCTC-ONSA), Major General Adamu Laka, has reaffirmed the commitment of the Federal Government of Nigeria (FGN) to ending kidnap economy in the country.

General Laka stated this while briefing newsmen on the activities of the Multi-Agency Anti-Kidnap Fusion Cell in collaboration with the United Kingdom – National Crime Agency on Tuesday in Abuja.

He said the centre had officially launched the State Expansion Programme of the Multi-Agency Anti-Kidnap Fusion Cell, bridging a critical gap between national security coordination and state-level tactical response.

The National Coordinator noted that kidnapping in Nigeria was no longer a random crime, but an industry being ran by sophisticated and well-armed criminal networks that thrive on fear and fund violence through ransoms.

According to him, the programme was aimed at dismantling that economy by connecting national strategy with boots-on-ground action.

He said the fusion cell was created in partnership with the United Kingdom’s National Crime Agency (NCA) to facilitate high-profile rescues and breaking up kidnapping rings across the country.

The national coordinator noted that kidnapping in Nigeria was no longer a random crime, but an industry being ran by sophisticated and well-armed criminal networks that thrive on fear and fund violence through ransoms.
According to him, the programme was aimed at dismantling that economy by connecting national strategy with boots-on-ground action.

He said the fusion cell was created in partnership with the United Kingdom’s National Crime Agency (NCA) to facilitate high-profile rescues and breaking up kidnapping rings across the country.

General Laka noted the cell had played key roles in supporting rescue operations, disrupting kidnapping networks, and improving interagency coordination.

According to him, experience has shown that while national coordination is crucial, state-level engagement is also indispensable.

“Too often, real-time intelligence, local knowledge, and operational readiness reside with field commands, while national coordination can only succeed when it is informed by ground realities.

“This is the primary purpose of this programme – to close the gap between national-level coordination and state-level response. Essentially, to build direct operational linkages between the Cell and state commands across the country,” Laka said.

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Economy

Food Security: Sanwo-olu Commended Over Launch of ₦500bn ‘Produce for Lagos’

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The Good Governance Campaign Forum (GGCF) has praised the Lagos State Government for launching the “Produce for Lagos” programme, describing this initiative and its ₦500 billion Offtake Guarantee Fund as a brilliant solution to the food insecurity challenges the nation faces.

The Forum issued this commendation in a statement signed by its Coordinator, Rahman Suleiman, on Wednesday, following the official unveiling ceremony of the program earlier in the week.

The program aims to transform Lagos’ food system and reduce the state’s dependency on external food sources, receiving positive recognition both within and outside the state for the Sanwo-Olu-led government’s efforts.

According to Suleiman, the initiative is timely and represents a pioneering collaboration between the Lagos State Government, the private sector, the Lagos Food Systems Infrastructure Company (LAFSINCO), Ekolog, and the Lagos Bulk Trading Company. He noted that this model is designed not only to enhance food production and logistics across the state but could also serve as a scalable framework for improving livelihoods and national resilience.

Suleiman shared insights from the Forum’s sampling of public opinion in Lagos and other states, indicating that people are pleased with the Lagos State Government’s strategic programs aimed at tackling hunger and starvation. He emphasized that a key component of the “Produce for Lagos” program is its data-driven approach, which will help address agricultural inefficiencies and strengthen value chains.

“Food security is a collective responsibility that we cannot afford to neglect as a nation,” Suleiman stated. “We are grateful to God for providing us with a leader like Sanwo-Olu, who is visionary, forward-thinking, and compassionate toward ordinary people.”

He commended Governor Sanwo-Olu for consistently setting benchmarks and leading by example in subnational governance. These achievements underscore the economic growth, infrastructural development, and urban planning efforts of the Lagos government.

“Governor Sanwo-Olu is a trailblazer; he has done exceptionally well, and we fully support his programs and policies. His work over the past six years speaks for itself,” he added.

Suleiman noted that this initiative, a partnership between the state government and the private sector, is expected to significantly boost agricultural production.

During the launch, Governor Sanwo-Olu also announced the deployment of a fleet of 150 cold and dry trucks—the largest of its kind—in partnership with the private sector.

Business mogul Tony Elumelu, who supported the project with ₦25 billion, stated that food security is crucial and expressed satisfaction with the collaboration between Lagos and other participating states.

Other prominent individuals at the event included Amir Kamel, Vice President of Afreximbank, and Michel Deleen, the Consul General of the Kingdom of the Netherlands, among other dignitaries.

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Economy

Constitution Amendment: Group Urges NASS, FG To Prioritise Restructuring, Regionalism

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… rejects the creation of new states

A prominent youth organization, the Youth Bureau, has urged the National Assembly to prioritize genuine restructuring of Nigeria, emphasizing regional autonomy and the establishment of State Police without further delay. This call comes as the legislature reviews the nation’s constitution.

The demand was articulated in the group’s Position Paper presented to the National Assembly Committee on Constitutional Amendment for the South-West Zone, which convened recently in Lagos.

In a statement signed by its Southern Coordinator, AbdulRahman AbdulRazaq, on Thursday in Lagos, the Youth Bureau also rejected calls for the creation of new states. The group warned that the Supreme Court’s judgment on local government contradicts their position, asserting that its implementation should be set aside. They believe only the State Government should have the authority to create local governments.

AbdulRazaq urged President Bola Ahmed Tinubu to prioritize comprehensive restructuring, as it is fundamental to effective governance and development. He encouraged the National Assembly Committee on Constitutional Amendment to make bold decisions that will have a positive impact on the populace.

He pointed out that the regional governments established in the late 1960s in Nigeria facilitated healthy governance and development, particularly under the Action Group government led by Chief Obafemi Awolowo in the Western Region. During that period, significant advancements were made in free education initiatives, healthcare infrastructure, industrialization, and overall infrastructure growth.

AbdulRazaq noted that the abolition of regional autonomy by the late General Aguyi Ironsi led to a unitary system of government, which resulted in excessive concentration of power in the central government, a lack of adherence to the rule of law, and restricted resource control and financial autonomy for the regions.

The Youth Bureau’s position paper includes the following demands and recommendations for the National Assembly Committee on Constitutional Amendment:

Our Demands

We urge the National Assembly Committee to consider the following:

  1. Genuine restructuring of the country based on regional autonomy.
  2. No need for the creation of additional states.
  3. The formation of State Police without further delay.
  4. Recognition that local government is a component of state government; the Supreme Court’s judgment on local government contradicts this principle, and its implementation should be set aside. Only the State Government should have the authority to create local governments.

Conclusion

We believe that a decentralized governance system founded on devolution and decentralization will ensure political and fiscal autonomy for its component units and promote equity among them. We urge President Bola Ahmed Tinubu to prioritize comprehensive restructuring and encourage the National Assembly Committee to make bold decisions that positively affect the citizenry.

Recommendations

  • Decentralize governance in theory, practice, content, and character.
  • Ensure equity among the component units.
  • Guarantee political and fiscal autonomy for the regions.
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