Building a nation of entrepreneurs

Entrepreneurship

Entrepreneurship

Nigeria, the most populous country in the black world and the second largest economy in Africa with a population of over 150 million, is endowed with diverse human, material and capital resources. But years of mismanagement, negligence and inconsistent policies have hindered the country’s economic growth. Although unemployment is now a global phenomenon, but due to the aforementioned reasons, available resources in the country have been underutilised and have not yielded to maximum economic benefits.

This has complicated the unemployment and poverty situation in the country.

According to the National Bureau of Statistics, Nigerian unemployment rate was 12.1 per cent in the first quarter of 2016, up from 10.4 per cent in the fourth quarter of 2015, reaching the highest since December 2009.

Realistically, 65% of Nigeria’s population is made up of the youths and this segment of the population is generally unemployed. While secondary school leavers are predominantly affected in the rural areas, making up about half of the unemployment rate figure, universities and polytechnic graduates make up the overall figure.

What seems to be more worrisome is the fact that the nation’s universities and polytechnics continue to churn out more than 150,000 graduates both Bachelor’s degrees and Higher National Diploma annually and job creation has been inadequate to keep pace with the expanding working age population. Recently, the Nigerian Police put up an advertisement for recruitment to fill 10,000 vacancies, but over one million Nigerians applied!

The age-long craze for white collar job is still a fad among the youths. Rural-urban migration in search of the Golden Fleece has also continued unabated. Urban centres are now over-populated by youths in search of so-called well paid jobs. This has led to an increase in socio-economic challenges in metropolitan areas like Abuja, Lagos, and Port Harcourt. Similarly, poorly skilled individuals are many in all sectors of the nation’s economy and to address this, acquisition of vocational skills have been identified as a tool for moulding employable individuals as unemployed individuals need more skills than they already have to find new jobs.

Various governments, both at the Federal and states levels had attempted to tackle unemployment, but all efforts at creating jobs for the growing number of the unemployed have yielded little or no result. This is because government alone cannot shoulder this problem.

With a population of over 20 million, Lagos State is burdened with the provision of essential infrastructural facilities and employment for the ever growing army of the unemployed. Although, unemployment is a national challenge, the metropolitan nature of the state complicates its situation. In order to proffer solutions to the lingering crisis of unemployment, the present administration in Lagos State under Akinwunmi Ambode cemented its desire for an entrepreneurial spirit in the citizens of the state by establishing the Ministry of Wealth Creation and Employment.

In fulfillment of one of his campaign promises and in seeking to redefine solutions to generic challenges of unemployment and wealth creation, the state governor, on January 5, 2016 signed the state Employment Trust Fund into Law and also set up a N25 billion Employment Trust Fund.

The Fund is disbursed to residents with innovative ideas that can translate into viable businesses which will promote self-employment as well as the creation of employers of labour. And for the next four years, the government will commit N6.25 billion annually as loan given at a moderate interest rate of three per cent per annum. It provides financial support to residents for job and wealth creation and also gives equal opportunities to all citizens.

Similarly, it is a known fact that Nigerian youths, particularly, university and polytechnic graduates usually lust after white collar jobs, but the prevalent unemployment situation in the country has redirected their focus towards embracing self-employment. Hence, in order to encourage the entrepreneurial spirit of young Lagosians, the Ready Set Work project was put in place.

This is an entrepreneurship and employability initiative aimed at equipping final year students in the state-owned tertiary institutions with critical skills to either become employable or become employers of labour. The capacity building programme, an initiative of the State Ministry of Education, is expected to run for 13 weeks (Saturdays) during the second semester in each of the participating institutions, and will be subdivided into three distinct components: employability, entrepreneurship and general module.

More states to need to learn from Lagos by harnessing the entrepreneurial potentials of their citizens.

Ogunnubi is of the Features Unit, Ministry of Information and Strategy, Alausa, Ikeja, Lagos.

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1 Comment
  • Anne Mumuney

    Laudable idea but accountability and monitoring? Will the funds go to youth or back into the pockets of the organisers and their cronies? Will the consultancy contract for training and development surpass the actual loans disbursed? How will the state administer the funds to ensure transparency? All these issues and more need to be addressed or this is just another dead on arrival scheme. And that sad thing is that if the will is actually there, these schemes will work properly and transform the informal sector that is actually keeping the wheels of this country running. The artisans, the market women and men, the young IT professional, the musicians. I hope lagos state is genuine it its plans. We wait with bated breath to see the report of the scheme 12 months from now.

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