The Unsettling Reality of Abia's Unemployment Rate

Abia State, once a thriving hub of commerce and industry in Nigeria's South Eastern region, is now grappling with an unsettling reality: an alarming unemployment rate that has put the government of Dr Alex Otti in the line of fire.

The latest statistics reveal that Abia State has one of the highest unemployment rates in the country, with millions of youths struggling to find meaningful employment.

According to the latest Nigeria Labour Force Survey Q1 2024 report by the National Bureau of Statistics, Abia State, the Federal Capital Territory, and Rivers State recorded the highest unemployment rates in Nigeria for 2023.

The report stated that Abia State leads the chart with an unemployment rate of 18.7 per cent, followed closely by the FCT with 14.1 per cent, and Rivers with 13.4 per cent. The NBS survey revealed that approximately 362,000 individuals were unemployed in Abia State, despite significant numbers being engaged in the informal and self-employment sectors.

According to the report, Abia’s workforce includes over 1.25 million self-employed people, while 1.51 million are in informal employment, reflecting a heavy reliance on these sectors as formal job opportunities remain scarce.

The staggering numbers are not only economically debilitating but also socially explosive, just as it has become an unsettling reality for the government of the day and a whipping tool for the immediate past administration.

The data in consideration for the current rating was derived from 2023 indices which implied that both administrations of Governor Okezie Ikpeazu which ended on May 29, and his successor, Alex Otti are joint partakers of the situation though at different levels.

However, the statistics point to the decline of traditional industries, especially in the manufacturing sector that has left a void in job creation. Aba, a foremost commercial hub of eastern Nigeria once hosted many production companies with considerable capital and job base for residents and expatriates with sufficient skills and capacity to meet the global demands of their customers.   

Some of these traditional industries that are now extinct include Golden Guinea PLC, PZ, Modern Ceramics, Enyimba Shoe Factory, Ulonna Farming Estate etc.

These industries that made the city then, have disappeared due to inadequate Infrastructure: Poor roads, electricity, and transportation networks that hinder business growth and job creation. The sustained insincerity of the government in maintaining and building supporting infrastructure to boost business contributed largely to the unemployment rate as the companies relocated to more friendly and conducive environments.

One potential area that would have saved the situation is the agricultural sector but was not spared by the deliberate and wicked act of corruption that denies genuine farmers the opportunity to benefit from government policies aimed at boosting food production in Nigeria. Portfolio farmers within the corridors of government would easily hijack the programmes to profit their cronies while real farmers groan under heavy taxation and high cost of production. There should be deliberate measures to-boost-agri-farming by all stakeholders.

In the formal sector, the civil servants under the previous administration of Okezie Ikpeazu were owed several months of salaries while their families reeled in abject poverty. The purchasing power was too low to support the informal sector and overall growth in the economy. Subsequently, Governor Alex Otti on assumption of office launched a reform of the civil service which saw to the disengagement of thousands of workers allegedly employed through a fraudulent waiver by the previous government.

Revitalizing the manufacturing sector is crucial for economic growth and job creation. The government can start by Improving Education and Training to produce a skilled workforce that meets the sector's demands. This can be achieved by developing relevant curricula and providing incentives for students to pursue technical and vocational courses.

Simplifying Regulatory Burdens is another key strategy. By streamlining regulatory approvals and reducing permits required, the government can make it easier for manufacturers to operate in the country.

There is need for continuity of the campaigns to boost the credibility and acceptance of made in Aba goods across the world. However, such campaigns should be handled by experts with key deliverables well known to all stakeholders to track their performance and reduce duplication of government responsibilities.

The knee-jerk response to the unemployment statistics by the government is not necessary as it gives the current administration the needed direction to finding a lasting solution to the problem, rather than prodding in the dark. The excitement in the opposition camp is also unfortunate because, the situation that spiraled to the poor rating stemmed from their insensitivity to critical matters that should put Abia on the global map given available resources.

Effective governance and anti-corruption measures are also vital for the desired growth of all sectors of the economy. Government responsibilities must be given to individuals with genuine intention and proven track records that aligns with the policy direction. Government should also stop undue exploitation of the private sector by some unscrupulous individuals.

Abia State can reclaim its position as a thriving hub of commerce and industry, providing opportunities for its youths and promoting economic growth if deliberate policies are developed to grow the informal sector.