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Nigeria’s Unemployment Rate Jumps to 23.1% in Q3

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  • Nigeria’s Unemployment Rate Jumps to 23.1% in Q3

The high unemployment rate in Nigeria has taken a new turn in the third quarter (Q3) of 2018 despite efforts by the current administration to enhance job creation and deepen growth.

The number of economically active people (between age 15-64) rose from 111.1 million in Q3 of 2017 to 115.5 million in Q3, 2018, according to a Labour Force Statistics released by the National Bureau of Statistics (NBS) on Wednesday.

The total number of people in the labour force, those who are able and willing to work, increased from 75.94 million in Q3 2015 to 80.66 in Q3 2016; 85.1 million in Q3 2017 and 90.5 million in Q3, 2018.

The total number of people with jobs rose from 68.4 million in Q3 2015, to 68.72 million in Q3 2016, to 69.09 million in Q3 2017 and 69.54 million in Q3 2018.

While the number of people in full-time employment, those working at least 40 hours a week, climbed from 51.1 million in the same quarter of 2017 to 51.3 million in Q3 2018.

The total number of people in part-time employment or underemployment, which decreased from 13.20 million in Q3 2015 to 11.19 million in Q3 2016, increased from 18,02 million filed in Q3 of 2017 to 18.21 million in the third quarter of 2018.

The total number of unemployed persons, those that did nothing at all or worked less than 20 hours a week rose from 17.6 million recorded in Q4 of 2017 to 20.9 million in Q3 2018.

However, out of the 20.9 million classified as unemployed, the NBS said 11.1 million of the number did some form of work but with far too few hours to be officially tagged employed. The remaining 9.7 million did nothing as 8.8 million of that number were first-time job seekers that have never worked before.

Therefore, putting the national unemployment rate at 23.1 percent in the third quarter of 2018, up from the 18.8 percent filed in Q3 2017.

Again, the combined number of unemployment and underemployment rates rose to 43.3 per cent in the quarter, a 3.3 per cent increase when compared to 40 per cent of Q3, 2017.

The youths unemployment rate declined slightly from 30.50 per cent in the second quarter of 2018 to 29.7 per cent in the third quarter. Still, higher than the 25.5 per cent filed in Q3, 2017. Youths underemployment stood at 25.7 per cent in Q3, 2018.

The combined number of youths either unemployed or underemployed rose to 55.4 per cent in the quarter, higher than the 52.6 per cent from the same period of 2017. Another indication of rising youth unemployment and underemployment when compared to the national combined rate of 43.3 per cent.

Despite six consecutive quarters of economic growth, Nigeria has failed to enhance new job creation and sustained old ones. A substantial number of the 9.7 million unemployed Nigerians said they were previously employed but lost their jobs due to harsh economic condition.

The economy grew at 1.81 per cent in the third quarter but that has failed to translate to job security or new job creation, not even numerous capital projects were able to absorb enough workers to ease growing unemployment rate.

Rising unemployment rate, falling forex reserves, high-interest rates, and weak consumer confidence in the economy are some of the factors impacting growth in recent months, and with the global oil price trading at $58 a barrel, far below the $86 attained in October, Nigeria may struggle even more in 2019 if global economy continued to slow amid protectionism.

President Buhari earlier today presented the 2019 proposed budget of N8.8 trillion to the joint session of the senate and house of representative. Again, funding remained a concern as national debt as already risen to over $73 billion.

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 long experience in the global financial market.

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Economy

FG Raises Ex-depot Price of Petrol to N138.62/litre

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FG Increased Ex-depot Price of Petrol by N6 to N138.62/litre

Following the report published on Monday that oil marketers were in panic buying mood ahead of a possible increase in the pump price of petrol, the Petroleum Products Pricing Regulatory Agency (PPPRA) has finally raised the ex-depot price of petrol by N6 to N138.62 per litre for the month of August 2020.

According to oil marketers, with ex-depot at N138.62 per litre, the pump price of petrol could be between N149 and N150 per litre this month.

The ex-depot price is the price at which depot owners sell the commodity to retail outlets.

Abubakar Maigandi, the Vice President, Independent Petroleum Marketers Association of Nigeria, who spoke to our correspondent, said the PPPRA did not stipulate the new pump price for petrol.

“They told us today (Tuesday) that the ex-depot price is now N138.62/litre but were silent on the pump price, and I think that by tomorrow (Wednesday) the pump price will be announced,” he said.

Maigandi added, “With the N6/litre increase in ex-depot price, the projection is that the pump price will be around N149/litre or N150/litre, based on our usual computations.”

On Monday, Investors King had reported that oil marketers were buying petrol ahead of price increase following a series of meeting with PPPRA.

There is panic buying and it is because of the worry that prices will be reviewed either downwards or upwards. But because of the marginal rise in crude oil prices, the calculation is that petrol price could go up,” stated Billy Gillis-Harry, the National President, Petroleum Products Retail Outlets Owners Association of Nigeria.

He added, “That is the situation and this was why we requested that there should be a stakeholders’ engagement every month or quarterly so that we can be sure of what to expect.

This was after price was deregulated and allowed to be determined by forces of demand and supply. Therefore, the recent increase in the price of crude oil necessitated an equal increase in pump price and vice versa.

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AfCTFA to Cushion Negative Effect of Covid-19, Boost Regional Income by 7%- World Bank

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World Bank Says Successful Implementation of Trade Pact Could Increase Africa’s Income by $450 Billion

A recent report by World Bank has revealed that the African Continental Free Trade Area (AfCFTA) agreement will avail African countries the opportunity to boost growth, reduce poverty, widen economic inclusion and increase regional income by 7 percent or $450 billion.

The multilateral financial institution further stated that the successful implementation of the trade pact could cushion the negative effect of the global health pandemic, lead to a surge in wage growth for women and lift over 30 million people out of extreme poverty by 2035.

Given the economic damage caused by Covid-19, the report suggested that AfCFTA’s income gain would likely come from simplified customs procedures, tariff liberalization and reduction in non-tariff barriers. Also, putting in place trade facilitation measures that cut off the red tape, reduce compliance costs for businesses, improve ease of doing business in Africa and broaden the continent’s global supply chains would bolster income gains.

World Bank explained that the AfCFTA agreement would help cushion the negative effects of COVID-19 on Africa’s economy — by supporting regional trade and value chains through the reduction of trade costs. In the longer term, AfCFTA would provide a path for integration and growth-enhancing reforms for African countries by replacing the patchwork of regional agreements, streamlining border procedures, and prioritizing trade reforms, AfCFTA could help African countries increase their resiliency in the face of future economic shocks.

The World Bank’s Chief Economist for Africa, Albert Zeufack, said, “The AfCFTA is expected to lift around 68 million people out of moderate poverty and make African countries more competitive. But successful implementation will be key, including careful monitoring of impacts on all workers –women and men, skilled and unskilled—across all countries and sectors, ensuring the agreement’s full benefit.

The African Continental Free Trade Area has the potential to increase employment opportunities and incomes, helping to expand opportunities for all Africans,” he further stated.

According to the report, the trade pact would reshape markets and economies across the region, leading to the creation of new industries and the expansion of key sectors.

AfCFTA would also significantly boost African trade, particularly intra-regional trade in manufacturing. Intra-continental exports would increase by 81 percent while the increase to non-African countries would be 19 percent.

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Economy

Oil Marketers: Panic Buying Ahead of Possible Increase in Pump Price

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Oil Marketers in Panic Buying  Mood Ahead of Possible Increase in Pump Price

A new finding has shown that filling station owners are presently in panic buying mood ahead of a perceived increase in pumping price of petrol in August.

Petroleum Products Pricing Regulatory Agency during the weekend said pumping price could rise due to the surge in oil prices in recent weeks.

According to experts, pumping price could hit 150 per litre this month, especially after comments from the president of the agency validated that possibility.

Billy Gillis-Harry, the National President, Petroleum Products Retail Outlets Owners Association of Nigeria, said “There is panic buying and it is because of the worry that prices will be reviewed either downwards or upwards. But because of the marginal rise in crude oil prices, the calculation is that petrol price could go up.”

He added, “That is the situation and this was why we requested that there should be a stakeholders’ engagement every month or quarterly so that we can be sure of what to expect.”

He, however, said a lot of marketers have said they are not going to hike price immediately, particularly if there was an increase in the price of petrol in the month of August.

The PETROAN president said, “Many of our members have been buying products since (July) 22nd and now they have products lined up, hoping that if PPPRA increases price, they will manage the cost in a way that Nigerians will know that we are not out to profiteer.

“We are out there to give service. So if we got products at this current rate of about N143 and they are ready to shoot the price up to N155, which is what is being anticipated, we will still sell at N143.”

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