With the resumption of economic and business activities tomorrow, after the New Year break, discussions on the nitty-gritty of the 2015 budget are bound to begin as economic watchers appraise the federal government’s efforts in the areas of job creation and economic diversification, writes Festus Akanbi
One recurring challenge in Nigeria’s march to nation-building is that of youth unemployment. The development has continued to attract serious mention in the media on a daily basis because of the attendant social and economic impacts of having a large concentration of idle youths lurking around the corners in the various geopolitical zones in the country.
Because of harvests of social upheavals which unemployment brews, it is usually one of the issues readily thrown up by opposition in an election year.
Because of harvests of social upheavals which unemployment brews, it is usually one of the issues readily thrown up by opposition in an election year.
Economic affairs commentators, however, explained that although the present administration still has a lot to do to reduce the sheer number of idle youths on the streets, the fact remains that President Goodluck Jonathan has done quite a lot to tackle the scourge of unemployment in the country.
Some of the commentators, including officials of government, who shared this thought, said it would be unfair to heap the blame for the high rate of unemployment in the country on the present administration, saying it is a social problem which can be traced to previous administrations.
They also advanced the same argument to counter the notion that Nigeria is just beginning to diversify its economy, hence its seeming vulnerability to the current oil price shock.
The Employment Scorecard
And in an obvious move to put the record straight, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, used the opportunity of the 2015 budget presentation to speak on some of the efforts being put in place to significantly reduce the number of jobless people in the country.
According to the minister, some of the platforms being used by the present administration to address the problem of youth unemployment is YouWin, which she said had turned out to be a winning tool.
Giving a breakdown of government’s initiatives in the 2015 Budget presented to the National Assembly in December last year, Okonjo-Iweala noted that YouWin, which she described as a successful programme, had nurtured over 2,400 young entrepreneurs with 22,000 jobs created in the first two rounds.
Some of the commentators, including officials of government, who shared this thought, said it would be unfair to heap the blame for the high rate of unemployment in the country on the present administration, saying it is a social problem which can be traced to previous administrations.
They also advanced the same argument to counter the notion that Nigeria is just beginning to diversify its economy, hence its seeming vulnerability to the current oil price shock.
The Employment Scorecard
And in an obvious move to put the record straight, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, used the opportunity of the 2015 budget presentation to speak on some of the efforts being put in place to significantly reduce the number of jobless people in the country.
According to the minister, some of the platforms being used by the present administration to address the problem of youth unemployment is YouWin, which she said had turned out to be a winning tool.
Giving a breakdown of government’s initiatives in the 2015 Budget presented to the National Assembly in December last year, Okonjo-Iweala noted that YouWin, which she described as a successful programme, had nurtured over 2,400 young entrepreneurs with 22,000 jobs created in the first two rounds.
President Goodluck Jonathan, had in 2011 launched YouWin, described as an initiative to support Nigerian entrepreneurs.
The initiative known as Youth Enterprise with Innovation in Nigeria or YouWin is targeted at youths between the ages of 18 and 35 who already own businesses or have strong business plans.
As a mark of progress, the minister, in the policy document submitted to the National Assembly, explained that YouWin 3 is on the verge of disbursing to its 1,500 beneficiaries who are expected to create, on average, nine jobs each, adding that the government will continue in 2015 with the implementation of YouWin 4, which will again, identify another 1,500 young entrepreneurs to support.
The initiative known as Youth Enterprise with Innovation in Nigeria or YouWin is targeted at youths between the ages of 18 and 35 who already own businesses or have strong business plans.
As a mark of progress, the minister, in the policy document submitted to the National Assembly, explained that YouWin 3 is on the verge of disbursing to its 1,500 beneficiaries who are expected to create, on average, nine jobs each, adding that the government will continue in 2015 with the implementation of YouWin 4, which will again, identify another 1,500 young entrepreneurs to support.
She recalled that government also launched a $50 million SME Venture Capital Fund that will help take YouWin beneficiaries and other viable SMEs to the next level, and create even more jobs. “The government’s focus on this program despite a tight budget is part of the pro-people efforts of this budget to support our youth,” she said.
Another variant of the job-creating scheme mentioned in the budget presentation is the Growing Girls and Women Initiative in Nigeria, (G-WIN), which was launched in 2013 to integrate Nigerian women and girls into key sectors of the economy through budgetary initiatives.
Another variant of the job-creating scheme mentioned in the budget presentation is the Growing Girls and Women Initiative in Nigeria, (G-WIN), which was launched in 2013 to integrate Nigerian women and girls into key sectors of the economy through budgetary initiatives.
Positive Results
Okonjo-Iweala said the initiative has yielded positive results and generated interest across the board. She listed some specific results achieved to have included the training of 2,285 young women in ICT; treating 2,362 VVF patients and so on, adding “In 2015, we would continue to expand this program.”
Okonjo-Iweala said the initiative has yielded positive results and generated interest across the board. She listed some specific results achieved to have included the training of 2,285 young women in ICT; treating 2,362 VVF patients and so on, adding “In 2015, we would continue to expand this program.”
Another employment generating effort of the current administration is the Community Services Women and Youths Employment CSWYE project of SURE-P. The supervising Minister of Labour and Productivity, Alhaji Kabiru Tanimu Turaki, said at a recent public function that with a total of 118,984 beneficiaries in all the states of the federation and the Federal Capital Territory, down to ward and community levels, the CSWYE project no doubt presents a potential force for youths and women employment creation and poverty alleviation component of the transformation agenda of President Goodluck Jonathan.
Interestingly, President Jonathan did not fail to draw attention to his impressive performance in the area of job creation during his New Year message to Nigerians.
Interestingly, President Jonathan did not fail to draw attention to his impressive performance in the area of job creation during his New Year message to Nigerians.
He recalled that his administration recently launched the Youth Employment in Agriculture Programme (YEAP) and the $100 million dollars Government and Donor Fund for Agriculture Finance in Nigeria (FAFIN) to fast-track the positive transformation of the nation’s agricultural sector.
The President explained that the Youth Employment in Agriculture Programme (YEAP) targets 750, 000 market-oriented young agricultural producers while the $100 million dollars fund is to provide affordable long-term financing to support the development of small and medium agribusinesses in the country.
This is in addition to a N50 billion Farm Mechanisation Support Fund set up by the Central Bank to establish 1,200 agricultural equipment-hiring enterprises. Jonathan said both funds will become fully operational this year. Policies and programmes such as these to boost agricultural production remain topmost on the agenda of the administration.
All these initiatives, according to government sources, are part of government’s Agricultural Transformation Agenda.
Job Creation in the Agriculture Sector
The sources said one of the major successes of the ATA is the announcement that Nigeria’s food import bill witnessed a significant reduction from $7bn to $ 4.3bn, which by any estimation was significant for local production to thrive.
Beyond the focus on agricultural transformation, THISDAY gathered that job creation is another drive for the programme.
The Agricultural Transformation Agenda (ATA) launched in 2012 is an initiative of the Federal Ministry of Agriculture and Rural Development (FMARD) to support the President Goodluck Jonathan’s Transformation Agenda, with an aim to building commodity value chains as institutions required to unlock the country’s huge agricultural potentials. Its targeted outcome is to add 20 million tonnes of food to the domestic food supply by 2015 and create 3.4 million jobs.
This is in addition to a N50 billion Farm Mechanisation Support Fund set up by the Central Bank to establish 1,200 agricultural equipment-hiring enterprises. Jonathan said both funds will become fully operational this year. Policies and programmes such as these to boost agricultural production remain topmost on the agenda of the administration.
All these initiatives, according to government sources, are part of government’s Agricultural Transformation Agenda.
Job Creation in the Agriculture Sector
The sources said one of the major successes of the ATA is the announcement that Nigeria’s food import bill witnessed a significant reduction from $7bn to $ 4.3bn, which by any estimation was significant for local production to thrive.
Beyond the focus on agricultural transformation, THISDAY gathered that job creation is another drive for the programme.
The Agricultural Transformation Agenda (ATA) launched in 2012 is an initiative of the Federal Ministry of Agriculture and Rural Development (FMARD) to support the President Goodluck Jonathan’s Transformation Agenda, with an aim to building commodity value chains as institutions required to unlock the country’s huge agricultural potentials. Its targeted outcome is to add 20 million tonnes of food to the domestic food supply by 2015 and create 3.4 million jobs.
Other goals include ensuring substitution through the acceleration of production of local staples, which is all aimed at reducing dependence on food imports and turning Nigeria into a net food exporter.
According to the Minister of Agriculture and Rural Development, Dr Akinwumi Adesina, the strategy of the ATA is to treat Nigerian agriculture as a business, rather than a government funded development project through the development of over 17 value chains which include Rice and Cassava among others.
According to the Minister of Agriculture and Rural Development, Dr Akinwumi Adesina, the strategy of the ATA is to treat Nigerian agriculture as a business, rather than a government funded development project through the development of over 17 value chains which include Rice and Cassava among others.
He particularly noted the success of the GES across the northern states of Nigeria as statistics by the Ministry has revealed that between 2012 and 2014, a total of 10.5 million farmers across the northern states have benefited from the GES program for subsidised farm inputs. 75% of the 14 million farmers, who have benefitted from subsidized farm inputs under the GES scheme, are from northern Nigeria. The highest number of beneficiaries has been in the Northwest with 4.2 million farmers, the North central with 3.4 million farmers and North east with 2.9 million farmers.
Diversification
On the call for economic diversification, Okonjo-Iweala’s address to the National Assembly did go a long way in identifying various measures put in place by the Jonathan administration to deepen Nigeria’s economic base.
Okonjo-Iweala believed that rather than continue to brood over the current economic challenges, Nigeria should see these challenging times as times of opportunities to further move the economy on the right path.
According to her, Jonathan administration had taken to diversification seriously and began to make inroads prior to this time.
Diversification
On the call for economic diversification, Okonjo-Iweala’s address to the National Assembly did go a long way in identifying various measures put in place by the Jonathan administration to deepen Nigeria’s economic base.
Okonjo-Iweala believed that rather than continue to brood over the current economic challenges, Nigeria should see these challenging times as times of opportunities to further move the economy on the right path.
According to her, Jonathan administration had taken to diversification seriously and began to make inroads prior to this time.
She disclosed that the non-oil sector, whose growth has averaged about eight percent in the last few years, is the primary driver of growth in the economy unlike the oil sector which is actually contracting.
She stated that “Other evidence of this diversification can be seen in the agriculture sector, where food Imports declined from N1.1 trillion ($6.7 billion) in 2009 to N684 billion ($4.35 billion) in 2013 and continues to decline, according to the National Bureau of Statistics. NBS data on consumer price index for the month of November 2014 also shows that inflation eased for the third consecutive month from 8.1 percent to 7.9 percent, as a result of slower rise in food prices. So the efforts of government to boost food production all across the country are paying off.”
She stated that “Other evidence of this diversification can be seen in the agriculture sector, where food Imports declined from N1.1 trillion ($6.7 billion) in 2009 to N684 billion ($4.35 billion) in 2013 and continues to decline, according to the National Bureau of Statistics. NBS data on consumer price index for the month of November 2014 also shows that inflation eased for the third consecutive month from 8.1 percent to 7.9 percent, as a result of slower rise in food prices. So the efforts of government to boost food production all across the country are paying off.”
The minister said, “In general, our recent GDP rebasing exercise shows evidence of a more diversified economy as the services sector now accounts for about 51 percent of the GDP against 26 percent before, while agriculture and industry (including the Oil and Gas Sector) which accounted for about 33 percent and 41 percent of GDP under the previous base now account for about 26 percent and 24 percent respectively under the new GDP. It must be said also that this government’s diversification efforts also generated 1.2 million jobs in 2013 out of the 1.8 million new jobs needed each year. In 2014, we have so far generated about 500,000 jobs in the first half of the year.”
Boost to IGR
Dwelling on specific measures put in place to increase non-oil revenue, Okonjo-Iweala said that over the last three years, government has been working to increase its independently generated revenues (IGR) and has in fact, sustained an upward trajectory in IGR receipts.
She noted that actual receipts have continued to grow from about N182 billion in 2011 to N274 billion in 2013 and then, N328 billion as of October 2014. She also believed that the recent meeting between President Jonathan and some revenue generating agencies to address the issue of non-remittance will start to yield the desire dividend soon.
Government, she said, is determined to improve tax revenues not by increasing tax rates as many have advised, but rather as a pro-people administration, by strengthening tax administration. The effort, she said, has already yielded additional non-Oil revenue of about N143 billion for government in 2014.
Boost to IGR
Dwelling on specific measures put in place to increase non-oil revenue, Okonjo-Iweala said that over the last three years, government has been working to increase its independently generated revenues (IGR) and has in fact, sustained an upward trajectory in IGR receipts.
She noted that actual receipts have continued to grow from about N182 billion in 2011 to N274 billion in 2013 and then, N328 billion as of October 2014. She also believed that the recent meeting between President Jonathan and some revenue generating agencies to address the issue of non-remittance will start to yield the desire dividend soon.
Government, she said, is determined to improve tax revenues not by increasing tax rates as many have advised, but rather as a pro-people administration, by strengthening tax administration. The effort, she said, has already yielded additional non-Oil revenue of about N143 billion for government in 2014.
“In 2015, we are ramping up the FIRS/McKinsey initiative to contribute an extra N160 billion in tax receipts and an aggregate of about N460 billion over and above the 2014 levels in the 2015-2017 period,” she said.
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