Sharp unemployment rate drop recorded in Nigeria
Three in four Nigerians of working age were employed by the end of March, according to data released by the country’s National Bureau of Statistics (NBS).
This contrasts sharply with the last data, from the end of 2020, which showed that one in three Nigerians that were able to, and actively looking for a job, could not find one.
But what looks like a sharp drop in unemployment is not all that is seems.
The figures were expected to change drastically after the NBS announced that it was revising its methodology to bring it in line with International Labour Organisation (ILO) guidelines.
One of the major changes is that now all those of working age who are engaged in any activity for pay or profit for at least one hour a week are deemed employed. In the past, the benchmark for employment was a minimum of 20 hours work per week
The report showed that 75% of working Nigerians owned their businesses or were engaged in farming, while only 12% were employees as at March.
It is also likely to be contentious as it was carried out before the removal of a decades-long fuel subsidy at the end of May when a new government came into power.
It has also loosened currency restrictions, which has sent prices of commodities spiking.
Small businesses and low-income earners are among those most badly affected by these changes.
Local media has been reporting on business closures and how people have had to stop working because of high transport fares. —BBC
