Unemployment Rate to Hit 33.6 Percent as 39.4m Nigerians Are Projected to be out of Jobs Soon
The Federal Government on Thursday said millions of Nigerians may be out of jobs soon if nothing is done to address the current rising unemployment rate in the country.
Vice-President Yemi Osinbajo made the statement while presenting a report from Economic Sustainability Committee to President Muhammadu Buhari on Thursday in Abuja.
President Muhammadu Buhari had set up the committee on March 30, 2020 during the peak of COVID-19 pandemic and the beginning of the projected severe economic downturn in the nation.
According to the Vice President, about 39.4 million Nigerians may be out of their jobs in 2020 due to COVID-19 pandemic and shortfall in revenue needed to cushion the economy.
The Osinbajo-led committee expects the unemployment rate to jump from the current 23.1 percent to about 33.6 percent previously predicted by Investors King in April.
Also, the committee said even with global Brent Crude oil (international benchmark for Nigerian oil) trading at about $30 per barrel, the nation would still have around N185 billion monthly shortfall.
The Vice President said, “Several projections, including those done by the NBS on behalf of the Economic Sustainability Committee, showed a severe downturn in our oil earnings, as a result of which, even with oil price at $30 a barrel, we would still have a shortfall of about N185bn every month in the amount available for allocation to the three tiers of government.
“They showed that unemployment may rise to 33.6 per cent or about 39.4 million people by the end of 2020, if we fail to take prompt preemptive measures.
“They showed that millions more will fall into extreme poverty before the pandemic ends; and that GDP may fall to between -4.40 per cent and -8.91 per cent, depending on the length of the lockdown period and strength of our economic response.”
In the report titled ‘Bouncing back: The Nigerian economic sustainability plan,’ the Vice President and the committee recommended that the government embarked on broad-based job creation to mitigate the negative impact of the pandemic on the nation.
He added, “We have therefore recommended that we must carry out mass programmes that create jobs and utilise local materials.”
