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Unemployment in Nigeria Rises to 5.3% in Q1 2024

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First Generation Unemployment

The Nigerian unemployment rate increased to 5.3 percent in the first quarter (Q1) of 2024 from 5.0 percent reported in 2023.

However, the report showed that the unemployment rate among youths decreased to 8.4% in Q1 2024 from 8.6% reported in Q3 2023.

In the same vein, there was a 0.7% increase in the engagement of youths in employment, education, and training.

“The percentage of Youth Not in Education, Employment or Training (NEET Rate) was 14.4, indicating a 0.7 percentage point increase from Q3 2023,” the report revealed.

The report further revealed that females recorded a higher unemployment rate of 6.2 percent compared to males at 4.3 percent.

In terms of employees’ availability for additional hours of work, there was a decline from 12.3 percent in Q3 2023 to 10.6 percent in Q1 2024.

It was also reported that despite this improvement, self-employment remains dominant, with 84% of Nigeria’s labor force engaged in self-employment as against 86% in Q1 2023.

Focusing on environmental metrics, the report revealed that the unemployment rate in urban areas remained unchanged at 6.0 percent, while rural unemployment stood at 4.3 percent, with 91.9 percent of workers in rural areas being self-employed, compared to 78.2 percent in urban regions.

In addition, 82.5% of the labor force in rural areas and 74 percent in urban areas were actively participating in the workforce.

However, by gender, male participation stood at 77.5 percent, while female participation was slightly lower at 77.1 percent.

“Disaggregation by place of residence shows 82.5 percent in rural and 74.0 percent in urban areas. The participation rate among males was 77.5 percent and 77.1 percent for females,” the report read.

Furthermore, the report revealed that the labor force participation rate among the working-age population declined to 77.3 percent in Q1 2024 from 79.5 percent in Q3 2023.

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FG Approves Disbursement of N70,000 Minimum Wage for Nigerian Workers

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The Nigerian government under the leadership of President Bola Tinubu has approved the payment of the newly approved N70,000 minimum wage to workers in the country.

The latest development was made known by the Spokesperson of the Office of the Accountant-General of the Federation, Bawa Mokwa on Thursday.

However, Mokwa who confirmed that payment will commence on Thursday, September 26, 2024, expressed uncertainty over the minimum wage arrears.

Mokwa said, “Federal Government civil servants will start getting the new minimum wage from today (Thursday) this September 2024. What I can tell you is that the minimum wage salary payment is today I am not sure of the arrears.”

The latest development comes hours after the National Youth Service Corps (NYSC) secured a 133.33 percent increase for corps members.

Investors King reported that the increase was in line with the enactment of the National Minimum Wage (Amendment) Act 2024 by the President Bola Tinubu-led government.

The NYSC also revealed that the Chairman of the National Salaries, Incomes and Wages Commission, Ekpo Nta, confirmed the upward review of consolidated public service salary structure, CONPSS in line with the Minimum Wage (Amendment) Act, 2024.

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FG Warns Private Sector Against Paying Below ₦70,000 Minimum Wage, Says It Is A Punishable Crime

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The Federal Government has insisted that no Nigerian worker, either in the government or private sector, should earn less than the approved ₦70,000 minimum wage.

This update was shared by the Permanent Secretary, Ministry of Labour and Employment, Kachollom Daju, at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria, held in Ikeja, Lagos.

Daju was represented by the Director of Employment and Wages of the ministry, John Nyamali.

The government warned that those who choose to ignore the directive are disobeying the law, and can be jailed for it.

The FG reaffirmed its commitment to ensuring that the least paid worker goes up with ₦70,000 as salary every month.

His words: “The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than ₦70,000 to any of its workers.

“The private employment agencies should make it compulsory in any contract they take from their principal that their workers should not earn less than the minimum wage. The least paid worker in Nigeria should earn ₦70,000, and I think that should be after all deductions.

“The minimum wage is a law, and you can be jailed if you fail to implement it. The Federal Government is committed to ensuring that the least paid worker goes home with ₦70,000.”

The President of the Employers Association for Private Employment Agencies of Nigeria, Dr. Olufemi Ogunlowo, also gave a speech at the event.

He called on the government to highlight all ambiguities in the Act and explain it to them.

Notably, he wants the government to clarify whether the new minimum wage is net or gross.

“As a labour union in the private sector, we are committed to the implementation of the minimum wage. We are a law-abiding and guided association. Our principals and clients have also keyed into the minimum wage.

“However, the government must clarify whether the ₦70,000 minimum wage is net or gross. The government and NLC should address all ambiguities in the minimum wage,” he stated.

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Aviation Workers Threaten Nationwide Strike Over Federal Revenue Deductions

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Aviation workers have announced plans for a nationwide strike on August 21, 2024.

This action is in response to the Federal Government’s ongoing policy of deducting 50 percent from the internally generated revenue (IGR) of key aviation agencies.

The announcement was made in a letter dated August 14, 2024, by the unions representing the staff of the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA), Nigerian Meteorological Services Agency (NiMet), Nigerian College of Aviation Technology (NCAT), and the Nigerian Safety Investigation Bureau (NSIB).

The letter, titled “Save Aviation From Collapse,” was shared with the media on Thursday.

The unions are protesting the financial strain imposed on these agencies by the government’s revenue deduction policy, which they argue threatens the operational capacity and safety of the aviation sector.

The agencies affected by the deductions are crucial for the management and safety of air travel in Nigeria.

“All workers of the affected agencies, joined by the solidarity of all aviation workers, are hereby directed to embark on peaceful protests at all airports nationwide on August 21, 2024,” the letter stated.

The unions are demanding an end to the 50 percent deduction and highlighting that the agencies are cost-recovery entities, not profit-making organizations. They assert that sustaining operations under these financial constraints is untenable.

The unions have raised concerns that the financial strain is already compromising critical safety activities within the agencies.

They warned that if the financial pressures persist, the industry could become dysfunctional, which would impact not only domestic but also international flight operations.

Michael Achimugu, Director of Public Affairs and Consumer Protection at the NCAA, expressed concerns about the potential impact of the strike.

He cautioned that a strike could severely disrupt airport operations and service providers, leading to widespread flight cancellations and delays.

Achimugu acknowledged the unions’ notice of the protest and expressed hope that discussions between the aviation minister and the unions would address their concerns before the strike date.

Nnadi Hector, Forum Secretary of the Joint Aviation Trade Unions Forum, emphasized that the protest aims to draw the government’s attention to the detrimental effects of the revenue deductions.

Hector clarified that the strike is not directed against President Bola Tinubu but rather a measure to highlight the sector’s urgent need for financial stability.

“The protest is meant to bring the government’s attention to how these deductions are affecting the safety and functionality of our aviation sector,” Hector said.

He reiterated that aviation is a global sector regulated by international standards and that maintaining operational standards is essential for Nigeria’s credibility in the global aviation industry.

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