World Bank added that 23 million more Nigerians would ill live in extreme poverty by 2030 if the nation’s poverty rate doesn’t fall.
The World Bank has disclosed that 80 million working-age Nigerians will not have a full-time job by 2030 if the nation doesn’t improve its employment rate.
It added that 23 million more Nigerians would ill live in extreme poverty by 2030 if the nation’s poverty rate doesn’t fall. The global bank disclosed this in its ‘Nigeria Development Update (December 2022): Nigeria’s Choice’ report.
It stated that creating better jobs is a necessary condition if the nation wants to reduce poverty and increase economic transformation.
According to the bank, most poverty in Nigeria is in-work poverty, and having any job does not guarantee a way out of poverty. It stated that employment in agriculture is far more prevalent among those that are poor.
The global bank stated that while Nigeria was one of the best growth performers globally in the 2000s, it failed to build institutions that could foster structural transformation and job creation. It said because of this the nation is struggling to keep pace with growth rates and transformation of its peers since the early 2010s with GDP per capita dropping from US$2,280 in 2010 to US$2,097 in 2020, and the number of Nigerians living below the poverty line rising from 68 million to about 80 million.
Also, Nigeria is one of the least developed countries in the world, with a ranking of 160 out of 188 on the 2021 Human Development Index.
It said, “Per-capita income will plateau, 80 million working-age Nigerians will not have a full-time job by 2030 if the employment rate does not improve, and 23 million more Nigerians will live in extreme poverty by 2030 if the poverty rate does not fall.”
Explaining how crucial the creation of these jobs is, the Washington-based bank stated, “Creating better jobs is a necessary condition for accelerating poverty reduction and economic transformation.
“It is estimated that 3.5 million Nigerians enter the labor market every year, a number that cannot be absorbed by a public sector-led economy. This large number represents 41 per cent of the total new entrants in the labor market in West Africa.
“However, even if job creation were to catch up with the expansion of the labor force, Nigerian workers would not fully benefit if other socio-economic conditions remain unchanged. A child born in Nigeria today will be 36 per cent as productive in adulthood as she could be if she enjoyed more and better-quality education and full health (the sixth-lowest percentage globally).
“A combination of limited job creation, booming demographics, and unfulfilled aspirations is pushing young Nigerians to emigrate abroad in search of gainful employment.”
According to the World Bank, unlocking private investment will create more and better-quality jobs in a sustainable manner in the nation since the private sector is at the heart of the development process and has been a critical component in every sustained growth success story around the world.
It said, “In Nigeria, the private sector is responsible for an estimated 90 per cent of GDP and 94 per cent of jobs, and thus is the only option for creating job-enhancing growth.”
It added, “Hence, despite the current challenges, Nigeria can still chart a sustainable and inclusive growth path based on solid economic institutions with a sound macroeconomic environment that reduces regional disparities, strong human capital that will help children reach their full potential and acquire the skills needed for a modern economy, and productive firms that create more and better jobs.”
PUNCH Nigeria Ltd