Amid ongoing discussions regarding Nigeria’s latest unemployment data, some analysts have explained how the National Bureau of Statistics could localise its methodology used to produce the new labour report.
Speaking at the “Follow the Money Series” hosted by TheWitness on Saturday, Olumide Adesina, a financial analyst and stock market expert suggested ways the National Bureau of Statistics (NBS) should have tailored its approach to current realities before adopting the International Labour Organization (ILO) standard.
Speaking further, he explained that employers are more interested in data relating to wage ranges rather than what the NBS data shows.
Adesina urged the NBS to draw inspiration from successful practices in Western markets, saying since they are adopting ILO standards, NBS should focus on aspects such as, “wage growth, payroll statistics, and active participation. According to Bloomberg, six companies dominate ten sectors of Nigeria’s economy, so collecting such data should not be challenging. It would provide us with valuable insights into the economy’s performance. We currently lack information about the impact of the subsidy removal, as the data only covers the first quarter of 2023. These are questions that we need to pose to the esteemed NBS,” he said.
Uade Ahimie, Head of Strategy and Public Affairs at TheWitness, expressed concerns about the small demographic sample used, making it difficult to ascertain the report’s accuracy.
On Thursday, August 24, 2023, the National Bureau of Statistics (NBS) released its latest labour force report, marking a significant two-year gap since the previous one.
The report revealed a substantial decline in Nigeria’s unemployment rate, standing at 4.1% in Q1 2023, in stark contrast to the 33.3% recorded in Q4 2020.
These figures have prompted skepticism, with many arguing that they do not accurately reflect the grim realities of the Nigerian job market. Critics attribute this discrepancy to the challenging economic environment, characterized by high inflation, FX shortages, and escalating operating costs.
