Rising Unemployment Among Self-employed Nigerians Reduces Tax Revenue

Latest Report Reveals Nigeria’s Unemployment Rate Reaches 5.3% in Q1, Leading to Economic Challenges

A recent Nigeria Labour Force Survey report by the National Bureau of Statistics shows a rise in the country’s unemployment rate to 5.3% in the first quarter of 2024. This increase is attributed to the closure of businesses, high petrol prices, stagnant wage growth, and rapid inflation.

As more businesses struggle and collapse due to poor policies, economists like Isaac Botti warn that the unemployment crisis may worsen, pushing more citizens into poverty. The decline in revenue from corporate income tax collection points to the challenges faced by organized businesses.

The situation is further exacerbated by a rise in discouraged job seekers and a growing informal sector. With job losses in key sectors like manufacturing and a decline in capacity utilization, the economy faces uncertainties unless adequate measures are taken.

Experts call for swift implementation of stabilization plans and tax reforms to support businesses and stimulate growth, emphasizing the need for a cohesive regulatory framework and investment in job-creating sectors to combat the increasing unemployment rate.