The unemployment rate in Nigeria has fallen to 4.1% during the first quarter of 2023 from 5.3% in the fourth quarter of 2022, according to Mr. Adeniran Adeyemi, the Statistician General of the Federation and CEO of the National Bureau of Statistics (NBS). This announcement was made during the inauguration of the New Nigeria Labour Force Survey (NLFS) in Abuja on Thursday.
Adeniran explained that the shift in the NLFS rate from 33.3% in the fourth quarter of 2020 to the current figure was due to a change in methodology, and not indicative of government performance.
The newly introduced NLFS offers a comprehensive set of labour force indicators to provide deep insights into Nigeria’s workforce dynamics. The survey was conducted by the NBS in collaboration with the World Bank (WB) and the International Labour Organisation (ILO) to address the evolving dynamics of the labour market.
Adeniran clarified, “This methodology review is not an attempt to portray any government or political party positively. This is a routine process for a responsible statistical office. Our goal is to provide the government and all users with accurate data for informed decision-making, maintaining the highest standards.”
The new methodology considers all forms of income-generating engagements, classifying approximately 73% of Nigerians as engaged in some form of work. The revised data indicates an unemployment rate of 5.3% for Q4 2022 and 4.1% for Q1 2023, using the new International Labour Organisation (ILO) definition.
Adeniran also pointed out the scarcity of wage-employment, with only 11.8% engaged in such employment during Q1 2023, down from 13.4% in Q4 2022.
He mentioned a significant adjustment in defining the working age population, now extending from age 15 and above instead of the previous range of 15-64. This change recognises the labour contributions of individuals above 64 years of age.
Regarding the definition of unemployment, Adeniran noted that the new standard considers those within the Labour force who did not work for pay or profit for a minimum of 1 hour during the reference period. He clarified that the 1-hour benchmark is just a baseline and should not be interpreted as an accurate measure of regular work.
The survey found that around 76.7% of Nigerians in the working age population were engaged in some form of work for pay or profit during Q1 2023, compared to 73.6% in Q4 2022.
The World Bank’s Country Director, Shubham Chaudhuri, assured continued support for robust and regular national labour force survey data, emphasising that reliable data is essential for informed decision-making and intervention planning.
Minister of Budget and Economic Planning, Abubakar Bagudu, highlighted data’s importance in national planning and President Bola Tinubu’s commitment to supporting accurate data production.
Moving forward, the NBS, its partners, and stakeholders plan to improve communication strategies to effectively convey survey findings to the public.
