By Emma Ujah, Abuja Bureau Chief, Peter Egwuatu, Yinka Kolawole, Nkiruka Nnorom, Rosemary Isaac & Elizabeth Adegbesan
LAGOS — The Nigerian Bureau of Statistics reported a rise in Nigeria’s unemployment rate to 5.3% year-on-year, while the Central Bank of Nigeria raised the Monetary Policy Rate (MPR) to 27.25%.
The NBS disclosed that in Q1 2024, the unemployment rate was 5.3%, with a notable increase compared to the previous quarter. Male unemployment was at 4.3% and female at 6.2%, with higher rates in urban areas at 6.0% compared to rural areas at 4.3%. Additionally, underemployment decreased to 10.9% in Q1 2024.
However, experts warned that the MPR hike will negatively impact investment and economic growth. They expressed concerns about increased borrowing costs and the potential for higher bad debt for financial institutions.
Meanwhile, the CBN Governor, Mr. Olayemi Cardoso, defended the rate hike, emphasizing the need to attract investments and achieve a positive real interest rate for economic competitiveness. He also highlighted the impact of FAAC releases on bank liquidity and the FX market.
In conclusion, stakeholders urged for collaborative approaches to address the economic challenges, emphasizing the importance of government intervention and productive economic policies.
The Unemployment Reality and Economic Outlook
While the unemployment rate continues to rise, experts stress the need for transformative economic policies to promote local production and reduce dependence on imports. They emphasize the importance of leveraging human capital and enhancing productivity to revive the economy and create sustainable growth.
As the nation grapples with economic challenges, a collective effort from both public and private sectors is essential to mitigate the impact of rising unemployment and ensure long-term economic stability.
The post explores the implications of the recent MPR hike and offers insights from various experts on the current economic landscape. It highlights the importance of innovative solutions and collaborative strategies to address the economic downturn and foster sustainable growth in Nigeria.