Breaking the Cycle: Critical Call for Economic Transformation and Empowerment -By Muhammad Yahaya Abubakar

Nigeria being a country of vast potential. With a population exceeding 250million, rich natural resources, and a growing youthful workforce, it could easily stand among the world’s economic giants. Yet, despite these advantages, the nation grapples with an undeniable challenge of stubbornly high unemployment rate and widespread poverty. It is a paradox that has persisted for decades with millions of Nigerians unable to secure gainful employment while poverty continues to tighten its grip on far too many citizens.

In the most recent report from the National Bureau of Statistics (NBS), unemployment in Nigeria stood at over 33%, a record high. This staggering figure paints a grim picture, particularly when considering the demographic reality of the country in the sense that more than 60% of Nigeria’s population are under 30 and the majority of these young people face a future where job opportunities are scarce. The poverty rate has worsened with the World Bank estimating that over 40% of Nigerians live below the poverty line, a situation exacerbated by inflation, insecurity, and economic mismanagement.

The consequences of high unemployment and widespread poverty are not just economic but are equally of social and political as well. Unemployment breeds frustration especially among the youth who without proper prospects for the future are often lured into dangerous and illegal activities like cybercrime that the EFCC are always working to curtails, banditry and violent extremism like Boko Haram, Niger Delta Militant Group, Biafra and lots of sort. The effect poverty had on the other hand hampers the nation’s long-term growth potential limiting access to education, healthcare, and basic services, which in turn stifles the human capital needed for sustainable development just like we have witnessed in insurgency affected states of Borno, Yobe, Sokoto, Kebbi and Zamfara.

Given the gravity of the situation, the Nigerian government must prioritize job creation and poverty alleviation. While numerous policies and initiatives have been rolled out over the years ranging from the National Social Investment Programmes (NSIPs) to the N-Power youth empowerment scheme of Buhari’s administration. The results have often fallen short of expectations. This is not to say that these initiatives have not made a difference but rather that they have been insufficient given the scale of the problem.

What is urgently needed is a fundamental shift in approach. The Economic and Domestic/Foreign Business team of the presidency must work together to adopt a comprehensive multi-sectoral strategy that addresses the root causes of unemployment and poverty while tapping into the vast potential of Nigeria’s youth population, by creating a more conducive environment for small and medium-sized enterprises (SMEs) to thrive, we have now had a new direction and leadership in PEBEC, as they are the backbone of job creation in any economy. Consequently greater investment in vocational training, digital skills, and entrepreneurship is critical to ensuring that young people are not just prepared for traditional job markets, but are empowered to create their own businesses and drive innovation. The SSA Economic Matters, Digital Economy, the PEBEC, SMEDAN, FML and the FMHDM need a robust and decisive action bring a lasting solution to unemployment in Nigeria.

Equally important is tackling the structural inefficiencies that contribute to high unemployment by reforming the education system to align with industry needs, improving infrastructure to enable businesses to flourish, and reducing bureaucratic barriers that make it difficult for businesses to thrive. Tax incentives for companies that hire young Nigerians, alongside policy decision that make it easier for businesses to operate, will create a ripple effect of job creation throughout the economy.

The government also needs to do more to tackle corruption, which remains a significant hindrance to the efficient allocation of resources. The mismanagement of public funds and resources has consistently stifled growth and exacerbated poverty. A commitment to transparency and accountability in government spending is essential if Nigeria is to make significant progress in reducing poverty and unemployment.

Boosting Nigeria’s employment rate and alleviating poverty will require more than just political will, it will require bold transformative action across multiple sectors of the economy. The government must be proactive in creating the right policies and enabling environment that empower businesses to thrive and provide opportunities for young Nigerians that is mostly settled on PEBEC as of today. This is not just a moral imperative, it is a critical economic necessity for the future stability and prosperity of the nation. If Nigeria is to fulfill its potential, job creation and poverty alleviation must become top priorities.