Tackling Youth Unemployment in Nigeria: Analysis of Latest Initiatives and Recommendations

Strategic Insights -

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has launched the Tertiary Institutions Entrepreneurship Scheme (TIES) to address youth unemployment and underemployment in Nigeria. The scheme aims to provide financial assistance to graduates of Nigerian polytechnics and universities, as well as support start-ups and existing businesses. According to Emefiele, the TIES was designed to address three verticals: the Term Loan component, the Equity Investment component, and the Development Grant Component.

The World Bank has also advised Nigeria and other sub-Saharan countries to accelerate the adoption of industrialized manufacturing to bridge the widening unemployment gap. According to the World Bank report, "Industrialization in Sub-Saharan Africa: Seizing Opportunities in Global Value Chains," industrialization-driven reforms should be at the forefront of policy strategies for sub-Saharan African countries.

Meanwhile, the high price of smartphones has kept millions of Nigerians off the internet, with the cheapest smartphone in Nigeria costing approximately #20,000, which is out of reach for low-income earners. The Lagos state government has also launched a new electricity sector policy designed to steer investors into its independent power market, which aims to deepen the adoption of green energy.

Additionally, Nigeria Air, the country's new national airline, is set to take off in April 2022, with the government holding a 5% stake and Nigerian entrepreneurs holding 46% of the remaining 49% stake.

Key Takeaways:

  • The Tertiary Institutions Entrepreneurship Scheme (TIES) aims to provide financial assistance to graduates of Nigerian polytechnics and universities, as well as support start-ups and existing businesses.
  • The TIES was designed to address three verticals: the Term Loan component, the Equity Investment component, and the Development Grant Component.
  • The World Bank has advised Nigeria and other sub-Saharan countries to adopt industrialized manufacturing to address the widening unemployment gap.
  • The high price of smartphones has kept millions of Nigerians off the internet, with the cheapest smartphone in Nigeria costing approximately #20,000.
  • The Lagos state government has launched a new electricity sector policy designed to steer investors into its independent power market.
  • Nigeria Air, the country's new national airline, is set to take off in April 2022, with the government holding a 5% stake and Nigerian entrepreneurs holding 46% of the remaining 49% stake.
  • Bukola Saraki, a former Senate President, has announced his intention to run for the office of the president in 2023.

Statistics:

  • The cheapest smartphone in Nigeria costs approximately #20,000.
  • The World Bank reports that 10 to 12 million youth enter the workforce annually in Africa, while only 3.1 million jobs are created.
  • The African Development Bank (AfDB) estimates that Africa's youth population will double to over 830 million by 2050.
  • The Lagos state government aims to establish an autonomous regulatory agency to oversee the electricity sector.

Sources:

  • CBN launches new intervention scheme to tackle youth unemployment
  • Nigeria: World Bank recommends 'industrialised manufacturing' to boost job creation
  • Price of smartphones continue to keep millions of Nigerians offline
  • Lagos launches new electricity policy
  • Nigeria Air to take off April 2022
  • Saraki declares intention to contest 2023 Presidency