Although determining a country’s economic position is not a precise science, we frequently use data from the Gross Domestic Product (for comparison). However, the GDP of a country does not necessarily convey the complete picture regarding the country’s overall quality of life. Indeed, the well-being of citizens in a given country is influenced by a variety of factors, one of which is employment.
Using this as a criterion, Nigeria is unquestionably a hub of high unemployment and underemployment. Or how would you characterize a country in which nearly 33.3 percent of the working population is unemployed, and 22.8 percent is underemployed? The youth unemployment rate in Nigeria is 42.5 percent, according to the same study from the National Bureau of Statistics.
Nigeria is ranked second on the list of countries with the highest unemployment rates, which is not surprising.
Nigeria’s unemployment rate is approaching epidemic proportions. Worse, there appears to be no clear end in sight. In the run-up to the 2023 general elections, our MPs’ goals have evolved, with candidates doubling down on their efforts to become the next generation of leaders. On the other hand, we have Nigerians who are trapped in low-wage (or even poisonous) jobs, fighting to make ends meet in a broken economy. Nigeria is as far from utopia as one can get, so it’s no surprise that the ‘Japa’ revolution is gaining traction among the youth.
Regardless of the efforts or inactions of successive Nigerian governments, unemployment has always been a source of frustration for the country’s population. No one benefits from playing the blame game. Now is the moment to think about, and not just think about, a way out of this problem. Nigerians are dissatisfied, youths are restless and enraged, and the naira is losing value by the day. It’s a sorry state of affairs all around. Technology, in my opinion, is still one of the most low-hanging fruits that our leaders can use to combat unemployment.
In recent years, technological advancements have disrupted the way we operate.
Many people are already aware with the concept of the future of work, which is characterized by flexible working circumstances, virtual engagement, and reliance on digital technologies. Furthermore, the advent of the gig economy demonstrates this.
The following queries may arise in your mind: What is the gig economy, and how does it work? To what extent can the gig economy help Nigerians combat the country’s rising unemployment rate? What can the government do to help the gig economy thrive? Let’s try to respond to each one of these questions.
The gig economy in Africa has grown dramatically since the advent of the COVID-19 pandemic. The gig economy refers to a variety of job forms such as agency, part-time, and temporary work, as well as short-term contracts and platform-based activities.
On a worldwide scale, technology has accelerated the adoption of the gig economy. It appears to have increased the number of ostensibly flexible ways for people to generate money. Intriguingly, the emergence of digital labor platforms provides income-generating alternatives to employees, including women, persons with disabilities, young people, and those in underserved places, that may not be readily available in their immediate environment.
Many Nigerians, particularly youngsters, are able to overcome geographical barriers to make money from abroad while remaining in their home country thanks to remote working.
Programming, virtual help, accounting, data analysis, video creation, content writing, UI/UX design, and content marketing are among the services offered by these experienced freelancers, who range from techies to creatives.
In a developing country like ours, gig gigs are seen not just as a promising source of work opportunities, but also as a way to supplement traditional employment earnings. An someone could perform a 9 to 5 job while also working as a freelancer on the side, depending on the nature of their work. The gig economy serves as a training environment for those with less experience, allowing them to get relevant experience, try out different roles, and network with other professionals in their field.
Nigeria is home to a number of firms that specialize in providing expertise to companies in need of specific capabilities. While entrepreneurs are attempting to address the issue of unemployment, it just creates another concern. How well-versed in the usage of modern technologies are Nigerian graduates, aside from social media?
The government must invest in the IT sector and the talent economy in light of the present digital change. One efficient approach to accomplish this is to train those who have no prior digital experience while also upskilling those who want to move into IT careers.
Expanding Internet infrastructure to encourage digital growth is another way the government can support the gig economy.
Despite the government’s objective for a 90 percent penetration rate, the rate of broadband penetration remains at 39.98 percent. Poor network infrastructure and epileptic power supply are two further issues.
Nigeria’s government must compete with other African countries by providing an enabling business environment, regulatory and tax benefits, and permitting easy, smooth cross-border payments for workers in order to promote Nigeria as a talent base.
Although gig economy employees earn a decent living, there are some unfavorable consequences. Gig laborers, for example, are not employees. As a result, they are ineligible for benefits such as paid time off, health insurance, and so on.
There may also be concerns with labor rights as a result of working irregular hours, low pay, involuntary overtime, and short notice of dismissal.
As a result of such scenarios, certain governments around the world, particularly in Europe, are developing regulating policies to promote and safeguard gig workers from exploitation. Nigeria, like other African countries, has the potential to follow suit.
Because the expansion of digital platforms in Africa has the potential to help close the job gap, governments must adopt new frameworks and models to ensure that employees receive a basic level of support.
