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Labour Groups Slam New Unemployment Data: ‘A Fabrication That Doesn't Match Reality!’

By: Achimi Muktar

In a storm of criticism, the Nigerian Labour Congress (NLC) has strongly condemned the latest report from the National Bureau of Statistics (NBS), which claims that the country's unemployment rate dropped to 4.3% in Q2 of 2024. Labour leaders and economic experts are calling the data a “fiction” that doesn’t reflect the grim economic reality Nigerians face daily.

The NLC, in a scathing response to the NBS report, rejected the claim that unemployment was on the decline. Chris Onyeka, the National Assistant General Secretary of the NLC, accused the NBS of misleading the public with “voodoo statistics” that painted an unrealistic picture of the nation's job market. According to Onyeka, the unemployment figures simply do not align with the stark challenges facing millions of Nigerians, including factory closures and a sharp slowdown in manufacturing activity. “Unemployment cannot be coming down in Nigeria when factories are closing, when consumer spending is plummeting, and when businesses are failing,” Onyeka stated. “This report is a fabrication designed to mislead the public.”

Adding weight to the criticism, the Organised Private Sector (OPS) joined in, also dismissing the NBS report as inaccurate. Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry (LCCI), called the reported improvement in employment a “technical adjustment” rather than a real change in the labour market. Idahosa explained that while the NBS may have altered its methodology for calculating unemployment, the actual state of the economy does not support such claims. “The economy does not reflect a significant reduction in unemployment,” Idahosa said.

The NBS report, released on Monday, showed a drop in Nigeria’s unemployment rate from 5.3% in Q1 2024 to 4.3% in Q2 2024, signalling what the agency described as improved labour market conditions. In addition, the report noted that the Labour Force Participation Rate had risen, indicating increased workforce engagement. It also highlighted a decrease in the youth unemployment rate, dropping to 6.5% from 8.4% in the previous quarter.

However, these optimistic figures were immediately questioned by industry leaders. Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, also expressed doubt, describing the NBS data as “not a true reflection of the reality of the job situation.” Yusuf, along with others, pointed to the struggles of the real sector, which continues to face numerous challenges including high transportation costs, exchange rate volatility, and energy issues. He questioned where the jobs were coming from, given that key sectors like agriculture, manufacturing, and trade had recorded very low growth rates.

Meanwhile, Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria, suggested that the reported reduction in unemployment could be the result of informal sector growth and temporary government initiatives. He noted that more people are being pushed into informal jobs, like trading or farming, which may not necessarily lead to long-term job stability or sustainable incomes. Egbesola argued that the focus should be on creating meaningful jobs with livable wages, not just counting hours worked in informal settings.

The NLC, on the other hand, went as far as to accuse the NBS of “INEC-style manipulation,” drawing a controversial parallel between the alleged manipulation of electoral data and the perceived flaws in the NBS report. Onyeka’s remarks pointed to a growing distrust in official statistics, particularly in light of the country's ongoing economic hardships.

Despite the uproar, the NBS remains firm in its stance, citing improved metrics in the second quarter as signs of a recovering labour market. But the controversy raises a larger question about the validity of government data and its ability to accurately portray the nation’s economic health.

As the debate rages on, one thing is clear: while government agencies may publish data claiming improvement, the lived reality for many Nigerians paints a very different picture of the nation’s labour market.