Nigeria at 64: Tinubu announces employment scheme to create 2.5m jobs for Nigerians

President Bola Ahmed Tinubu has announced an employment scheme, known as Renewed Hope Labour Employment and Empowerment Programme, LEEP, to create 2.5 million jobs for Nigerians directly and indirectly.

Tinubu made this known during his 64th Independence Day speech on Tuesday.

According to him, the initiative, which will commence in November 2024, aims to ensure the welfare and safety of workers across the country.

“In addition, later this month, we shall launch The Renewed Hope Labour Employment and Empowerment Programme (LEEP).

“It is conceived as a comprehensive suite of interventions at job creation by the Federal Ministry of Labour and Employment that is aimed at facilitating the creation of 2.5 million jobs, directly and indirectly, on an annual incremental basis whilst simultaneously ensuring the welfare and safety of workers across the country”, he said.

The president had also announced the national 30-day Youths Conference to address economic hardship.

According to him, the confab will ensure that the voices of youths are heard and recommendations implemented by his administration.

He said better days are ahead for Nigeria, urging Nigerians not to lose hope in the country.

By Ogaga Ariemu, Daily Post

Video - Nigeria introduces policy to stem medical brain drain

Nigerian authorities estimate that over 57,000 nurses have left the country in the past five years for better opportunities. Nigeria hopes improvements, including the incorporation of digital health infrastructure, better remuneration, and improved work-life balance for health professionals help retain its medical talent. However, experts argue that more comprehensive measures are needed.

CGTN

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Video - Nigeria to create 1.4 million jobs through cotton and textile industry

The government also wants to develop key components of the cotton value chain. Presently, Nigeria imports close to 90 percent of its textile products. This new initiative aims to change that.

CGTN

Microsoft Shuts Down Engineering Centre in Nigeria

Microsoft may have taken a business decision to shut down its African Development Centre (ADC) located in Ikoyi, Lagos, a development that will affect over 500 jobs that are directly linked to the innovation centre.

Although no reason was given by Microsoft for the decision to close down the innovation centre in Lagos, but sources close to Microsoft Nigeria said Microsoft informed the staff on Monday of its decision to close down the innovation centre, which also houses the Microsoft Garage, where local solutions are developed and nurtured to maturity.

THISDAY spoke with a senior staff at Microsoft yesterday, who neither denied the information nor accept it as truth. The senior staff however said Microsoft would soon react to the media information.

Another source close to Microsoft, however said the decision to close down the Microsoft Innovation Centre could be linked to the tough business environment in Nigeria, coupled with the harsh economic realities of the Nigerian economy. The source said no investor would be ready to lose money from any investments and that when an investment is fast losing money, it would be in the best interest of the investors to shut down the business to avoid further loss of money.

Microsoft had in 2019, initiated the innovation centre, with the purpose to create centres where technology solutions would be developed from Africa to address the African challenges as well as global challenges. Pleased with the initiative, Microsoft went ahead to establish the $100 million African Development Centres in Nigeria and Kenya, but decided to shut down that of Nigeria, leaving Kenya’s centre to still operate in Kenya.

THISDAY, had last month, observed what appeared to look like a desolate area in the building housing the Microsoft Innovation Centre in Lagos. The entire seven floors of the building were without staff and the few staff members on duty were the front desk staff and security personnel that kept watch over the place. The absence of staff was an indication that Microsoft may have taken the decision earlier to shut down the innovation centre. 

By Emma Okonji, This Day

Video - Nigeria government bans leave of absence for health workers

The Nigerian government has banned health professionals from taking leave of absence as it tries to stop them taking jobs abroad while on leave. Many health workers in Nigeria have been taking the extended leave to secure jobs abroad and abandoning their posts at home without formally resigning.

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Video - Nigeria imposes mandatory annual levy for organizations employing expatriate workers

To promote local employment opportunities, Nigerian authorities mandate that organizations employing expatriate workers pay an annual levy of 15,000 U.S. dollars for directors and 10,000 U.S. dollars for other employees.

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Nigeria imposes annual levy on expatriate workers

Nigeria has imposed a mandatory annual levy for organisations employing expatriate workers, requiring them to pay $15,000 (£12,000) for a director and $10,000 for other categories.

The move is meant to encourage foreign companies to employ more Nigerian workers.

Staff of diplomatic missions and government officials are exempt.

President Bola Tinubu has warned that the levy should not be used to frustrate potential investors.

He spoke while launching the Expatriate Employment Levy (EEL) handbook on Tuesday, adding that the government was expecting to improve revenue and indigenisation.

He said that its aim was to balance employment opportunities between Nigerians and expatriates.

"The goal is to close wage gaps between expatriates and the Nigerian labour force while increasing employment opportunities for qualified Nigerians in foreign companies in the country," he said.

There are more than 150,000 expatriates in Nigeria, according to local media citing data from the interior ministry.

They mostly work in the oil and gas, construction, telecommunication and hospitality sectors.

Nigeria is one of Africa's biggest oil producers. Its oil and gas exports account for 90% of foreign exchange earnings, according to the International Monetary Fund.

The move comes as Nigeria is experiencing its worst economic crisis in a generation, which has led to widespread hardship and anger in recent months.

Labour unions and government workers on Tuesday held demonstrations to protest against economic hardships.

Mr Tinubu acknowledged that Nigerians were going through a difficult period.

He said efforts were being made to improve the country's finances and grow the economy.

The levy applies to employees who work for at least 183 days in a year.

The scheme imposes fines of up three years and jail terms of up to five years for a person or organisations that do not comply, including failure to provide accurate information.

The Nigerian Immigration Service will be responsible for enforcing the levy.

Local media quoted Interior Minister Olubunmi Tunji-Oj as saying that it would be operated on a public-private partnership model between the government, the immigration service and a private firm.

Nigerian economist Abubakar Abdullahi says the levy is good for the country and won't frustrate potential investors as "they'll love to see the country grow as well"."I believe Nigeria stands to benefit from this levy as more companies will start looking inwards as there are qualified Nigerians from all sectors," he says.

By Basillioh Rukanga, BBC

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Unemployment rate in Nigeria surges to 5% amidst rising cost of living

This information was disclosed in the Nigeria Labour Force Survey (NLFS) report for Q3 2023, released on Monday. Per the NBS, this rate represents a 0.8% increase from the second quarter of 2023, where the unemployment rate stood at 4.2%.

The unemployment rate among men was 4.0% and 6.0 among women. By location, the unemployment rate was 6.0% in urban areas and 4.0% in rural areas. Focusing on young people, the youth unemployment rate was 8.6%.

In Q3 2023, 75.6% of Nigeria's working-age population were employed. When examining the data by gender, the employment-to-population ratio was 77.7% for males and 73.5% for females.

Further disaggregation by location revealed an employment-to-population ratio of 71.1% in urban areas and 80.7% in rural areas.

The report noted that 87.3% of employed Nigerians were predominantly self-employed, while the remaining 12.7% were primarily engaged as employees. 80.3% of employed people in urban areas were self-employed this is lower when compared with 94.5% of employed people in rural areas.

Informal employment

Informal employment in Nigeria and other developing countries seems to be very high when compared to the developed countries.

The percentage of employed individuals engaged in informal work was 92.3%, a slight decrease from the previous quarter's 92.7%. Interestingly, the rate of women involved in informal employment exceeded that of men.

"The rate of informal employment among people living in rural areas was 97.2% while the urban informality rate was estimated at 87.5%. Females are more likely to be in informal employment than males," the report said.

By Adekunle Agbetiloye, Business Insider Africa

Related story: Video - Graduates from Nigeria turn to creating jobs instead of looking for them

Video - Graduates from Nigeria turn to creating jobs instead of looking for them

Nigeria has one of the highest unemployment rates globally. College and university graduates regularly find a job market with few opportunities in the West African nation. However, rather than wait for opportunities, many are now starting their own businesses.

CGTN

Workers in Nigeria Strike Over Attack on Union Leader, Unpopular Economic Reforms

Nigeria's labor unions have begun an indefinite strike to protest the beating of Nigerian Labour Congress (NLC) president Joe Ajaero on November 1. The labor leader was to lead workers in protest over unpaid salaries in Imo state when he was picked up by security agents, who allegedly beat him.

For a second day Wednesday, the nationwide strike called by the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) held firm.

Compliance is stricter in the capital, Abuja, the operational nerve center of the workers' unions.

Police have denied beating the NLC president, saying agents only took Ajaero into protective custody to save him from an angry mob.

Benson Upah, spokesperson of the Nigerian Labour Congress, said the NLC president is still recovering from the incident.

"He was in a bad shape, he lost his bearing, his right eye was popped and recognition was poor," Upah said. "Up till this moment, there has been no condemnation for what happened. No one has been arrested let alone prosecuted for this heinous act. It is about the right of every citizen to freedom and justice. The issues that led to the movement of NLC and TUC people to Imo, those issues have not been addressed.”

But Ajaero's beating is not the only reason for the strike. The unions also blame authorities for failing to honor agreements made to cushion the cost-of-living crisis triggered by the government's economic reforms, introduced in May.

Earlier this year, President Bola Tinubu scrapped expensive fuel subsidies and floated the Nigerian currency in a bid to unify a multiple exchange rate system. However, the decision has hurt the economy and millions of citizens.

In August, workers staged nationwide street protests against the reforms and in September embarked on a two-day warning strike.

Authorities promised to respond.

Last Friday, the National Industrial Court of Nigeria ordered the workers' unions to not go on another strike.

Eze Onyekpere, executive director of the Center for Social Justice, a pro-union NGO, said, "The regime came on board and removed fuel subsidy and floated the naira, which has led to a situation where the minimum wage virtually less than $30. Things the government was supposed to do to reduce the hardship in the land, they didn't do, so for people like me, this strike is long overdue."

On Monday, the presidency criticized the strike, calling it unwarranted, and said authorities have launched a probe into the attack of the union leader.

Onyekpere said the government must not make empty promises or there will be consequences.

"We're going to degenerate to a state where any riffraff simply because he's in power will simply be beating up everybody," he said. "The day Nigeria descends to that level and workers don't speak out or workers don't show their strength, then Nigeria is gone to the dogs."

The unions say authorities must prosecute those who beat Ajaero, offer an apology, and take steps to improve the welfare of workers and citizens. Without those measures, they say, the strike will continue

By Timothy Obiezu, VOA

Video - Labour unions of Nigeria suspend planned national strike

The Head of Information and Public Affair at the Nigeria Labour Congress Benson Upah expounds on the main elements in the agreement between Nigerian government and the labour union following the suspension of the countrywide strike. 

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Labour unions of Nigeria suspend indefinite strike

Nigeria's biggest labour federations on Monday said they were suspending an indefinite strike that was set to begin on Tuesday after last minute talks with President Bola Tinubu's government, which had warned that the action could damage the economy.

Tinubu is under pressure to ease economic hardships after he scrapped a decades-old petrol subsidy and allowed the naira currency to depreciate, leading to soaring prices in Africa's biggest economy and major oil producer.

The government agreed a temporary wage increase for government workers, a three-month income subsidy for 15 million poor households and a pause in a value-added tax on diesel, among several concessions to prevent the strike.

In return, unions will suspend the strike for 30 days while negotiations continue, including on a new minimum wage for all Nigerian workers.

"After 30 days if these issues are not implemented ... it will show bad faith on the side of government," Joe Ajaero, the leader of Nigeria Labour Congress, the country's largest federation, told reporters.

By Felix Onuah, Reuters

Related story: Nigerian government offers wage rise to state workers as strike looms

Nigerian government offers wage rise to state workers as strike looms

Nigeria on Sunday announced a temporary wage increase for government workers, a three-month income subsidy for 15 million poor households and a pause in a value-added tax on diesel as the government sought to prevent an indefinite strike in two days.

After meeting with the government on Sunday, unions will on Monday take the proposals to their affiliates, who will decide whether to press on with the strike or suspend it, Joe Ajaero, president of the largest labour federation, Nigeria Labour Congress, told reporters.

Nigerian President Bola Tinubu said government workers would receive an additional 25,000 naira ($32) a month for the next six months, a smaller raise than the 200,000 naira that unions demanded. Tinubu said this was necessary to avoid pushing up double-digit inflation.

That would mean the lowest paid government worker in Nigeria will now earn 55,000 naira a month, up from 30,000 naira.

Poor households would also receive 25,000 naira a month for three months and a value-added tax on diesel will be paused for the same period, the president said.

The government also announced that mass transit buses would begin running on compressed natural gas.

At his inauguration in May, the president scrapped a decades-old fuel subsidy and ended foreign exchange restrictions, which has led to soaring cost of living, angering unions.

In a national broadcast earlier on Sunday marking 63 years of independence, Tinubu defended the reforms as necessary to put Africa's biggest economy on the path to recovery.

"I am attuned to the hardships that have come. I wish today's difficulties did not exist. But we must endure if we are to reach the good side of our future," said Tinubu.

By Felix Onuah, Reuters

Related story: Oil workers in Nigeria to join nationwide strike next week

Oil workers in Nigeria to join nationwide strike next week

One of Nigeria's main oil and gas unions will join a nationwide strike starting on Oct. 3 to protest against government policies that are causing economic hardship for Nigerians, union leaders said on Thursday.

Nigeria is Africa's largest oil producer and relies on the commodity for around 90% of foreign exchange earnings and about half its budget.

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) directed its members to ensure "unwavering compliance" with the indefinite strike called by Nigeria's two biggest workers union federations.

NUPENG represents a myriad of workers across the entire value chain in the oil and gas sectors, including upstream oil platform workers, fuel tanker drivers and pump attendants, and its decision to join the strike is a significant escalation of the unions' dispute with the government.

NUPENG President Williams Akporeha said the government's policies have caused "excruciating and debilitating socio-economic pains" for Nigerians without any accompanying measures to cushion "the immediate effects and impacts."

President Bola Tinubu has been under pressure to reverse his decision to scrap a popular petrol subsidy that had kept fuel prices low but was costly on government finances.

While his policies have cheered investors, unions say they have led to soaring costs for Nigerians - an estimated four in 10 of whom live below the national poverty line- as they grapple with the highest inflation in nearly two decades.

By Camillus Eboh, Reuters

Video - Nigeria skilled labor force leaving to other countries

Nigeria is continuously losing its skilled workers to foreign countries. This mass exodus is known locally as "Japa", which is a Yoruba word for run or flee. But as the most populous African country prepares to install a new president in May this year, there are calls to urgently address this trend by ensuring economic growth, and creating an environment for young people to thrive.

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How Nigeria can stop doctors’ brain drain – NMA chairman

Frustrated Nigerians 'flee' abroad in punishing pre-election brain drain

 

 

 

Amazon Web Services opens office in Nigeria

Amazon Web Services, Inc. (AWS) has announced the opening of its first office in Lagos, Nigeria.

Disclosing this in a statement on Wednesday, the company said the new office was part of its support for the growing number of customers and partners in Nigeria.

AWS is a subsidiary of Amazon, an American e-commerce company, that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered pay-as-you-go basis.

The development is Amazon’s latest investment in Africa, and it comes five years after its first office was opened in Johannesburg in 2017.

The e-commerce company said the office will support organisations of all sizes, including startups, enterprises, and public sector agencies as they make the transition to AWS cloud.

With the Lagos office, it said, AWS can better address the increase in customer and partner adoption of its services in Nigeria.

Commenting on the development, Amrote Abdella, regional manager of Sub-Saharan Africa, AWS, said with its local presence, the company will support new and existing clients looking to use its products and services to innovate, lower their information technology (IT) costs, and grow their organisations in the cloud.

“We are excited to open our first AWS office in Nigeria. Lagos offers a highly skilled and creative talent pool, and the area is home to many fast-growing startups and notable Nigerian enterprises leading the way in digital innovation,” Abdella said.

“We look forward to fostering the country’s pioneering spirit and helping our customers accelerate their digital transformation as they deliver innovative new products and services to the Nigerian community.”

Regarding plans for businesses, Amazon said it would actively support Nigerian startups and the community with educational programmes.

“AWS activate provides startups with the resources they need to get started on AWS, including up to $100,000 in AWS credits, training, support, and contact with incubators, accelerators, and venture capital firms. AWS academy helps university students and educators develop knowledge and skills about AWS cloud computing, to accelerate cloud-related learning,” it added.

“…member institutions in Nigeria include the University of Benin, University of Jos, and Igbinedion University. AWS re/Start is a 12-week, in-person, skills-based training program that covers fundamental AWS cloud skills and practical career skills, such as interviewing and resume writing, to help prepare individuals for entry-level cloud positions.

“AWS also has a vibrant user group in Lagos, with hundreds of members that organise local meetups for developers to network and share best practices and knowledge. To join the AWS Nigeria user group, visit the AWS User Group page.”

On his part, Isa Pantami, minister of communications and digital economy, said having such a development will boost the digital economy of the country.

Pantami said the service infrastructure pillar of the national digital economy policy and strategy (NDEPS) emphasises the importance of “digital platforms in the development of a robust digital economy”.

“The programs of Amazon Web Services support the development of such platforms and we look forward to partnering with AWS to accelerate the implementation of NDEPS,” he said. 

The Cable, by Busola Aro

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How Nigeria can stop doctors’ brain drain – NMA chairman

The Chairman of Nigerian Medical Association (NMA) in Oyo State, Wale Lasisi, has called on the government to give doctors incentives to mitigate the issue of brain drain bedeviling the health sector.

Mr Lasisi made the call in Ibadan on Tuesday at the opening of the 2022 Physicians’ Week, with the theme: “Nigeria’s Healthcare Delivery System and the 2023 Democratic Transition: A Time to Change the Narrative.”

He said the problem of brain drain had been on since 1960, as many people leave the country on a daily basis.

“In those days, the pattern was people training abroad and coming home to practise.

“As things degenerated over time, many people who have been exposed abroad ran back while those who have had the opportunity of training abroad also ran back when they saw the quality service there.

“UK is trying to replace its own workforce and make sure its people get the best of healthcare, thus coming down to Third World nations in Africa, including Nigeria, to recruit medical personnel.

“In the immediate future, the best that the government can do is to add incentives to retain those who are on ground,” Mr Lasisi said.

In his lecture, Vice-Chancellor of Olabisi Onabanjo University, Ago-Iwoye, Ogun, Ayodeji Agboola, advised those contesting for one position or the other to put the issue of healthcare in the front burner.

“We have heard several promises from 1960 till when the civilian rule started in 1999.

“So much legislation had also been made and we have heard that they wanted to develop primary healthcare but we have not seen any significant improvement.

“My advice and plea to all of them is to make sure that they put primary healthcare into focus,” Mr Agboola said.

Fola Adeniji, of University College Hospital, Ibadan, said if the brain drain trend should be allowed to continue, the country would be at the risk of having a collapsed health system.

“For every physician trained in Nigeria, government must have spent an average of N3.8 million, which is equivalent to $10,000.

“So if that individual decides to leave the country, that means the country will be losing investments in that individual,” Mr Adeniji said.

In his opening remarks, the Chairman of the event, Akinyinka Omigbodun, described doctors as endangered species, as many of them were leaving for other places, with the few remaining already overwhelmed with the number of patients.


Mr Omigbodun urged the association to bring together policy makers and stakeholders to implement policies that would benefit the sector.

In his goodwill message, the Chief Medical Director of UCH, Jesse Otegbayo, noted that the nation’s healthcare system had suffered a lot, especially in terms of poor allocation of resources to the sector.

He, however, said this year’s budget had given the sector the highest allocation, for the first time in many decades.

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Frustrated Nigerians 'flee' abroad in punishing pre-election brain drain

 Nnamdi Nwaogu, a 44-year-old IT worker, has packed his bags. In Lagos, Nigeria's frenetic commercial capital, galloping inflation and a plunging naira have pummeled his salary.

Nwaogu, like hundreds of other Nigerians, left amid a brain drain that is punishing even for a nation used to losing its young and educated.

"We have serious doubts if this is the time for that hope to blossom," he said before flying to the UK last month.

Nwaogu began a master's degree in England, while his wife, a doctor, will join him in January with their three children.

Departing workers are impacting nearly every sector, stretching a weak healthcare system, forcing employers to recruit on a continuous basis and worsening services from banking to tech.

The phenomenon -- dubbed "japa," meaning "to flee" in Yoruba -- regularly trends on social media. Many cite unprecedented nationwide insecurity, inflation at a 17-year-high and a loss of faith in leaders before the February 2023 presidential election.

"We are witnessing an epidemic of brain drain," said Dr Dare Godiya Ishaya, president of the Nigerian Association of Resident Doctors (NARD).

Ishaya said comparatively low pay, workplace assaults and lack of safety – 20 NARD members have been kidnapped this year -- were all reasons members left.

A NARD poll showed that nearly 800 resident doctors had left this year, while 85% of its leadership were planning to leave. The result is hours-long waits at hospitals, he said, doctor burnout and deteriorating care.

Real-time nationwide statistics on those leaving are not available. But British government data showed a 300% increase in Nigerians getting UK work visas in the year to June, to 15,772.

Others are going to Canada, Australia and the United States.

The exodus lead a banking industry group to release a study last month on ways to retain workers, while tech firms such as Yellow Card Financial, a cryptocurrency exchange, told Reuters they had started offering stock options and pay in dollars.

"The competition for talent is only going to get more and more intense," said Yellow Card chief executive Chris Maurice.

The pull from countries grappling with their own worker shortages is aiding the exodus.

One Nigerian accountant who moved to the UK in May said it took her just three months to get offers from two of the Big Four accounting firms; her company, she said, recently doubled its referral fee to 1,000.

Lagos-based consultancy SBM warned that the loss of skilled labour was bound to have a negative economic impact.

For Nwaogu, there is no choice.

"I want to be able to give my children a better quality of life," he said. "I can't get that here."

By Libby George

Reuters

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Jobs in Clean Energy in Nigeria to Double by 2023

Increased demand for solar power will drive a more than two-fold jump in the number of Nigerians working in the renewable energy sector by 2023, according to a report.

The sector could “create more than 76,000 new jobs by 2023” in solar services -- including home solutions, commercial and industrial appliances -- from 32,000 workers in 2019, according to a report by Power for All, a global coalition advocating renewable energy solutions to end blackouts.

Workers in the Nigerian renewable industry will exceed oil and gas employees totaling 65,000, the report said. Until August this year, Nigeria was Africa’s biggest producer of crude with one of the world’s largest gas reserves. Poor power supply and a more than 200% increase in diesel prices this year after Russia invaded Ukraine, have driven demand for solar power in the West African nation.

The research, which was supported by The Rockefeller Foundation, Good Energies Foundation and the European Programme GET.invest, is the outcome of a survey on employment and compensation in more than 350 companies across five countries namely Ethiopia, India, Kenya, Nigeria, and Uganda. Out of the five countries, Nigeria had the “fastest post-pandemic recovery and growth in decentralized renewable energy jobs,” it said.

Africa’s most populous nation has pledged to cut its greenhouse gas emissions by a fifth over the next decade under the Paris climate agreement. It launched an energy transition plan this year, which aims to attract private and public sector investments to expand solar infrastructure and grow gas-powered generation.

Read: Shell Acquires Nigerian Solar Firm in First Africa Power Buy

The country’s solar sector quickly recovered from lockdowns during the pandemic as it more than doubled workers to 50,000 in 2021, compared to the previous year, according to the report.

“The sector is maturing with the percentage of formal and skilled workers comprising over half of the decentralized renewable energy workforce,” it said.

By Emele Onu

Bloomberg

Video - Nigeria manufacturers warn of imminent job cuts as diesel prices soar

 

Nigeria is experiencing nationwide power outages caused by poor electricity generation and distribution. Businesses and homes are relying on generators, but the rising cost of diesel is adding to the problems. In the past 10 years, its electricity grid has had 200 system failures. Despite having four refineries, Africa’s biggest oil producer does not refine its crude oil. Instead, it imports fuel. Nigeria’s current electricity supply is only 4,000 megawatts for a population of more than 200 million. As the electricity supply worsens, thousands of industries have stopped working, throwing millions out of their jobs. Al Jazeera’s Ahmed Idris reports from Nigeria’s commercial capital, Lagos.