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Economy

Unemployment Rates Highest in South-South States

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  • Unemployment Rates Highest in South-South States

The data released by the National Bureau of Statistics on Friday revealed the high rate of unemployment rates across the South-South states despite huge oil exploration in the states.

According to the report that listed unemployment rates for every region in the country during the third quarter of 2018, states in the Southern part of the nation recorded the highest unemployment rates during the period.

Breaking down the unemployment report into six Geopolitical Zones in the country.

Geopolitical Zones Unemployment Rates Unemployment Percent
North Central states 3,204,235 27%
The North Eastern States 2,61,971 22%
North West states 3,871,637 24%
South East states 2,871,659 23%
South Southern states 5,385,608 32%
South West states 2,978,537 14%
Total unemployed Nigerians 20,927,648 23.1%

From the data, Southern states of the country recorded the highest unemployment rate with 5.4 million unemployed people or 32 per cent of the total number of unemployed Nigerians.

With the labour force of 16.7 million people, substantial internally generated rated revenue and billions of naira in monthly allocations, one would expect a better job number from the Southern states.

In fact, Akwa Ibom and Rivers, two of Nigeria’s richest states recorded 37 per cent and 36.4 per cent unemployment rates, respectively.

On the other hand, South West region created the most jobs despite its huge population. The labour force population was put at 21.4 million, with the number of unemployed persons standing at about 3 million or 14 per cent during the period under review. The lowest among the six geopolitical zones.

New job creation remained low across the Nigerian federation, especially among the youths with unemployment/underemployment rate of 55.4 per cent, higher than the national rate of 43.3 per cent.

World Bank, in a recent report titled ‘Pathways to Better Jobs in IDA Countries,’ stated that unemployment is not the main problem in low-income nations like Nigeria but huge underemployment due to too many idle hours is responsible for poverty in those economies.

The report further stated that people work in low-income nations because they cannot afford otherwise. Therefore, overqualified highly skilled employees are willing and ready to take up any available job just to get by.

The high underemployment rate in Nigeria validated the World Bank position that economic growth (GDP) in International Development Association (IDA) nations does not translate to job creation except it is an inclusive growth that is labour intensive.

Therefore, until Federal Government enhanced economic productivity through job creation, high underemployment and poverty will continue to undermine national growth.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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