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Economy Generated 187,226 Jobs in Q3

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A man walks past job seekers as they fill out job applications for recruiters during a job fair in New York
  • Economy Generated 187,226 Jobs in Q3

The Nigerian economy added 187,226 new jobs in the third quarter of 2016 (Q3 2016), from 155,444 jobs in the previous quarter, the National Bureau of Statistics (NBS) has stated.

Also, labour productivity for the quarter rose to N713.7 per hour, compared to N636.3 per hour in the second quarter.

Notwithstanding the employment generation report, which was released alongside the labour productivity index by the NBS monday, the data came amid rising unemployment of 13.9 per cent during the quarter under review.

The NBS further stated that the economy needed to generate 2.6 million jobs annually to hold down the current unemployment rate, as the country’s labour force is estimated to grow at over 2.6 million per annum.

According to the job creation report, employment generation was insufficient to meet the ever-growing labour market, leading to the continuous rise in the level of unemployment in the country.

NBS said the huge number of unemployed was a reflection of the current economic realities, as only few businesses are growing and employing while many others are shedding jobs.

It further noted that both the public and private sectors are currently finding it difficult to create jobs due to the economic crisis, adding that most states are currently finding it difficult to pay the salaries of existing workers.

According to the NBS, “In the third quarter of 2016, the total number of jobs generated rose to 187,226, from the 155,444 generated in quarter two, representing an increase of 20.4 per cent quarter-on-quarter, but a decline of 60.6 per cent year-on-year.

“The formal sector recorded 49,587 jobs, representing a 26.5 per cent share of new jobs in quarter three while the informal sector recorded a larger share of new jobs, compared to the previous quarter, reporting a figure of 144,651 jobs and representing 77.3 per cent of new jobs in quarter three.

“The public sector again recorded a negative growth in employment, with a figure of -7,012 in quarter three. The reported negative growth in public sector job numbers over the last year has not been entirely surprising, as many state governments across the country have struggled to pay salaries, hence restricting the number of new intakes and in some instances placing a complete embargo on new employment into the public service.”

The report said despite negative economic growth, net jobs created were still positive in both the formal and informal sectors as more jobs were created despite job losses especially through informal low paying jobs.

On labour productivity for the quarter, the NBS said the overall level was low, compared to the same period last year as a result of several challenges that generally impacted on output and labour, and indirectly on labour productivity, which kept it below optimal levels.

It said: “Investment in the economy was still relatively low, though some government investments were recorded during the quarter, the volume of private investment and foreign direct investments was still considerably low compared to previous years.

“Power was relatively stable throughout the quarter, which partly accounted for the increase in labour productivity. Though there was a contraction in the economy in the third quarter in real terms accompanied by an increasing unemployment rate, the growth in labour productivity implies a gradual increase in labour efficiency employed in the economy.”

The labour productivity index also showed that the agriculture sector recorded a growth of 4.5 per cent, the highest among any major economic activity, as the third quarter was the harvest season in the Nigerian calendar.

The report added that other labour intensive sectors such as human health and social services, as well as accommodation and food services, also accounted for the most jobs created in Q3 2016.

Labour productivity refers to the quantity of manpower input required to produce a unit of output. High above productivity can be an important signal of the improvement in the real income (wages of workers).

Also, the manufacturing sector of the economy recorded an expansion in new orders in December after eleven months of contraction, the Purchasing Managers’ Index (PMI) report released by the Central Bank of Nigeria (CBN), has shown.

The new orders index stood at 45.1 points in November but increased to 51.8 points in the month under review, with five sub-sectors recording expansions in new orders.

The increase was reflective of increased demand for consumer goods during the yuletide season.

The sub-sectors that recorded increased orders last month were cement; food, beverage and tobacco products; textiles, apparel, leather and footwear; paper products; and fabricated metal products.

The plastics and rubber products sub-sector remained unchanged, while 10 sub-sectors recorded a decline in orders.

Notwithstanding, the manufacturing employment index in the month of December stood at 48.6 points, indicating a drop in employment for the twenty-second consecutive month.

However, the PMI showed a slowdown in contraction in manufacturing employment, compared to the preceding month.

The report stated: “Of the 16 sub-sectors, nine recorded a contraction in employment in the following order: computer and electronic products; electrical equipment; appliances and components; printing and related support activities; furniture and related products; chemical and pharmaceutical products; primary metals; fabricated metal products; and non-metallic mineral products.”

Nevertheless, the manufacturing raw materials inventory index indicated an expansion in raw materials inventory in December at 51.6 index points.

The manufacturing and non-manufacturing PMI report on businesses is based on data compiled from purchasing and supply executives.

Survey responses indicate whether there is a change or no change in the level of business activities in the current month compared with the previous month.

New orders for non-manufacturing showed a slowing contraction in December at 46.6 index points while the composite PMI for the non-manufacturing sector declined for the twelfth consecutive month.

The index stood at 47.1 points, indicating a slowing contraction, compared to the previous month.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Nigeria’s Excess Crude Account (ECA) Balance Now $72.4 Million

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Zainab Ahmed Finance Minister

Nigeria’s Excess Crude Account (ECA) Balance Now $72.4 Million

The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Thursday said Nigeria’s Excess Crude Account (ECA) stood at $72,411,197.80 as of January 20th, 2021.

The minister disclosed this at the first National Economic Council (NEC) meeting of the year presided over by Yemi Osinbajo, Vice President and had in attendance State Governors, Federal Capital Territory Minister, Central Bank Governor and other senior government officials.

Ahmed said “Excess Crude Account (ECA), balance as at 20th January, 2021, $72,411,197.80; Stabilization Account, balance as at 19th January, 2021, N28,800,711,295.37; Natural Resources Development Fund Account, balance as at 19th January 2021, N95, 830,729,470.82.”

The minister also said President Muhammadu Buhari has approved N6.45 billion for the setting up of gas plants in 39 locations nationwide in an effort to increase COVID-19 treatment.

What is Excess Crude Account (ECA)

Excess Crude Account (ECA) is an account used to save the disparity in the market price of crude oil and budgeted price of crude oil as stipulated in the Federal Government Appropriation Bill.

Key Takeaways of Excess Crude Account (ECA)

  • Excess Crude Account (ECA) was established in 2004 by the Federal Government to stabilize Nigeria’s economy and smooth out the effect of crude oil fluctuation on Africa’s largest economy.
  • The ECA rose to its highest of $20 billion in November 2008 during the global oil boom when prices were above $100 per barrel.
  • Controversy, allegations of corruption, and uncertain performance have trailed the ECA since creation.
  • The balance plunged from $20 billion in 2008 to $72.4 million in January 2021.

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Economy

AfCFTA: Nigeria Customs Service Requested For Detailed Role In The Free Trade Agreement

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Container Shipping

AfCFTA: Nigeria Customs Service Requested For Detailed Role In The Free Trade Agreement

Nigeria Customs Service (NCS) requested for a proper and detailed role expected to be carried out in the implementation of the African Continental Free Trade Area (AfCFTA) agreement.

The NCS said detailed explanations of roles and responsibilities of all parties involved in the free trade agreement should be spelled out to avoid overlapping of duties and to achieve a seamless implementation of AfCFTA.

Mr. Joseph Attah the Public Relations Officer, on behalf of the Comptroller-General of the NCS, Col Hameed Ali (Rtd.), issued a statement to address the call for a detailed role of the Customs.

“Our functions are highly automated and primarily systems-driven, hence the need to methodically harvest and integrate all data associated with AfCFTA into our system for easy deployment, access, and use by the trading public.

“We, therefore, await the National Action Committee (NAC) on the list of duties and charges waived for liberalised goods under AfCFTA. The list of the 90 percent liberalised national trade offers (NTOs); list of the 70 percent non-liberalised exclusive goods at the regional level; and list of the 3 percent non-liberalised sensitive goods.

“The appointment of a competent authority responsible for issuing and authenticating certificates of origin and registering enterprises and products within the region.” He said.

In the statement, NCS pledges commitment to the success of the trade pact and also identifies the transformational impact the free trade agreement would have on businesses in Nigeria and the Africa continent at large.

“Also, it is pertinent to inform the public about steps which must be taken to enable its smooth and full implementation,” He added

NCS recommended that the member-country of the free trade agreement should have a representative in the continental chamber, this is to ensure transparency and build the confidence of the members in the system.

“This, in our view, should be complementary to the activities of the various chambers of commerce of each country in the region. While awaiting clear directives concerning tariffs for all goods covered by this agreement, we want to assure the public of our preparedness to fully deploy our services at the shortest notice.

“Our desire is to imbue trust in the system while guaranteeing the economic safety and wellbeing of businesses within the country,”  NCS noted.

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Economy

COVID-19: Nigeria Record Highest New Cases on Thursday as Continent Death Nears 83,000

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COVID-19: Nigeria Record Highest New Cases on Thursday as Continent Death Nears 83,000

The largest African economy, Nigeria recorded her highest ever COVID-19 new cases on Thursday, 21st of January.

Nigeria recorded her highest daily count of 1,964 new COVID-19 cases on Thursday, this was 300 higher than the previous high record of 1,664 new COVID cases it recorded on the 7th of January, 2021.

The country has recorded a total of 116,655 cases, 93,646 recoveries and, 1,485 deaths across the states since the outbreak of the Corona Virus.

According to health experts, the daily increase of new cases in the new year could be ascribed to the massive gatherings during the festive season, the relaxation of COVID-19 protocols in the various parts of the country, and in the two major airports, Lagos and Abuja airport.

The adverse effect of the global health pandemic has seen Africa recorded 82,781 COVID-19 death cases across the continents.

Confirmed Cases of COVID-19 from 55 African countries reached 3,364,031, reported deaths were 82,781 and, 2,809,825 were reported to have recovered as of January 22, 2021

The Africa country with the most reported COVID-19 cases in South Africa with a total of 1,380,807 cases of which 39,501 are death cases. Other most-affected countries are Morocco (463,706), Tunisia (190,884), Egypt (159,715), Ethiopia (132,326), and Nigeria (116,655).

The numbers are compiled by the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University (world map) using statistics from the World Health Organization and other international institutions as well as national and regional public health departments.

 

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