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| December, 2022 |
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SOCIO-ECONOMIC PROBLEMS IN NIGERIA: CAUSES AND
REMEDY
By
O. S. Abosede
CHAMPIONS EDUCATIONAL FOUNDATION
NIGERIA
(OVERALL WINNING ESSAY FOR CHAMPIONS EDUCATIONAL FOUNDATION 2021/2022)
___________________________________________________________________________
Abstract
Nigeria has the socio-economic potential to emerge a continental and global force that
influences sustainable economics and policies. Indeed, Nigeria’s socio-economic growth holds
immense potential when properly harnessed. This paper analyses the social and economic
problems of Nigeria such as unemployment, underemployment, poverty and the high rate of
illiteracy in the nation. In addition, the findings from this research reveal profound and creative
solutions with a focus on socio-economic growth and sustainable national development.
Key words: Socio-Economic, Growth, Economy, Development, Sustainability, Africa.
___________________________________________________________________________
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1.0 Introduction
The Merriam-Webster dictionary (2021) defines socio-economic problems as the combination
of social and economic factors which have negative influence on an individual. Similarly,
Dawud (2020) believes that socio-economic problems include the challenges that people face
in their lives and in the society. This essay demonstrates from a third-eye view, a critical
analysis on the socio-economic problems in Nigeria. The first part reveals the socio-economic
story of Nigeria. The second part focuses on the socio-economic problems in the nation. The
third part examines the root causes of these problems. The last part observes insights from
South East Asia Countries and proffers creative solutions to the socio-economic problems of
Nigeria.
2.0 The Socio-Economic Story of Nigeria
According to the Nigerian Economic Summit (2021), Nigeria has the potential to emerge a
continental and global force that influences national economics and policies. Indeed, Nigeria’s
socio-economic growth holds immense potential when properly harnessed. Undoubtedly, with
a market of over 200 million people, abundance of human and natural resources, and coastal
access to facilitate trade, Nigeria has the economic potential to be ranked amidst great countries
such as Luxembourg, Norway, Sweden and Singapore, which are making significant strides in
inclusive and sustainable development (ISID). However, the headlines in the country, do not
reflect her great socio-economic promise. Unfortunately, unemployment, poverty and the high
illiteracy rate in the country threaten our socio-economic growth and development. Thus, if we
are to secure the future of our dear nation, we must adequately articulate the urgent need for
laying the foundation for Nigeria’s priorities in solving these socio-economic challenges.
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3.0 Socio-Economic Problems in Nigeria
It is axiomatic that Nigeria is faced with the problem of a huge number of her population which
lack access to employment opportunities. In fact, The National Bureau of Statistics (2021)
estimates that Nigeria’s unemployment rate increased from 27.10 percent in the first quarter of
2020 to 33.30 percent in 2021 and it is projected to reach 40.00 percent in 2023. It is appalling
that the recruitment exercise by the Nigerian Immigration Service (NIS) conducted on the 15th
of March, 2014 revealed the alarming rate of unemployment in Nigeria.
Vanguard (2014) posits that:
Over 125,000 youths showed up at interview centres in Lagos and Abuja respectively,
chasing less than 5000 jobs available in the NIS. Unfortunately, the nationwide
recruitment exercise turned out to be a job disaster, as thousands of youths fainted from
stampede and exhaustion, while 20 applicants were reported dead (par. 5).
This distressing situation has made many people susceptible to many social vices such as
armed-robbery, kidnapping, human trafficking, cyber-crime, prostitution and terrorism
amongst others, thereby worsening the insecurity rate through banditry and criminal activities.
Figure 1: Unemployment in Nigeria
SOURCE: National Bureau of Statistics (2021)
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In addition, despite being the leading oil producer in Africa (CBN, 2021), Nigeria has struggled
to transform her resource wealth into rising living standards. The United Nations believes that
poverty depicts a state where an individual is unable to meet social and economic obligations
such as food, shelter and clothing. The 2019 report by The World Poverty Clock reveals that
Nigeria overtook India as poverty capital of the world, with 86.9 million Nigerians living below
the international poverty line—$1.90 per day and “the number of poor Nigerians is projected
to hit 95.1 million in 2022 (Premium Times, 2022). Moreso, Nigeria accounts for about 14%
of the globally poor and according to Vanguard (2018), six more Nigerians become poor every
minute. This harsh condition breeds hunger, malnutrition in diets, discrimination, exclusion
and limited access to basic health services in the country.
Figure 2: Extreme Poverty in Nigeria
SOURCE: (World Poverty Clock, 2019).
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Furthermore, illiteracy is another major challenge that impedes socio-economic development.
The 2021 report released by the Federal Government of Nigeria reveals that more than 76
million Nigerians, representing 38 per cent of the estimated population of people in the country,
cannot read and write (Tribune, 2021). In fact, the education deprivation in northern Nigeria,
in predominantly rural areas is driven by various factors such as poor learning and teaching
resources, dilapidated classrooms, and socio-cultural norms and practices that discourage
attendance in formal education, especially for girls. This sad situation prompted Chief Wike,
one-time Minister of State for Education in Nigeria, to lament that the number of out-of-school
children in Nigeria increased from 10.5 million to 13.2 million; the highest in the world. And
what are the large-scale consequences? Illiteracy limits creative minds, reduces human capital
development and increases the rate of early marriage and child labour in the nation.
Figure 3: One in every five of the world’s out-of-school children is in Nigeria
SOURCE: United Nations Children's Fund (2021)
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4.0 Root Causes of Socio-Economic Problems
The world of work is changing rapidly as a result of innovation and disruptive technologies
which have become salient components for thriving at the workplace. Employability skills
such as critical thinking, problem solving abilities, leadership, team work and managerial skills,
necessary for this 21st century are rarely taught as part of our education curriculum in the
country. And this has made many youths unable to meet the increasing demand of the labour
market. This was rightly asserted when Charles Soludo, a former CBN Governor, lamented
that 65% of Nigerian graduates are unemployable (CBN, 2016 cited in Ekott 2015).
Closely accompanying the lack of employability skills is the preference for white-collar jobs.
Anzaa (2018) assert that “many young Nigerians seem prepared to wait indefinitely for a
particular type of employment on which they have set their minds rather than accept
alternatives.” This approach makes many people lackadaisical towards entrepreneurship
programme and vocational training. However, the white-collar jobs in the country are limited.
In addition, violent social conflicts in Nigeria contribute to widespread poverty in Nigeria. For
instance, the rampaging menace of Fulani Herdsmen at the Northern Nigeria and other
insecurity threats in the country have caused the breakup of communities and social networks.
Such crisis hurts economic growth, causes forced displacement, restricts access to adequate
health care, and leaves many refugees even without a home. Consequently, this has destroyed
the livelihood of many citizens, a situation that has resulted in endemic poverty.
Furthermore, Adedigba (2017) argues that the limited educational opportunities in the country
affects the literacy rate among the teeming population. For example, only 30 percent of those
who applied for admission into tertiary institutions in 2017 were being admitted (Ibid). The
high illiteracy rate in the nation is also caused by high drop-out rates, low enrolment rates and
insufficient educational materials especially in rural communities.
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5.0 Creative Solutions and Policy Recommendations
Abraham Lincoln preached that the best way to predict the future is to create it. Nowhere does
this statement resonate as intensely, as on the high rate of unemployment in the nation. Indeed,
this is a wakeup call for young Nigerians to secure their future by intensifying efforts in
harnessing their great potentials. More fundamentally, young people should emphasize
entrepreneurship—both in and out of school. Consequently, this will help to create small
businesses and chart a paradigm shift from employment seekers to employment providers.
Similarly, a tilt towards the promotion of entrepreneurship in the agricultural sector should be
encouraged in Nigeria. According to PwC (2018), “Nigeria has some of the richest natural
resources for agricultural production in the world, with over 84 million hectares of arable land,
of which only about 40% is cultivated.” Indeed, to advance the SDGs in Nigeria and solve our
socio-economic challenges in the society, we must promote diversification by maximizing
opportunities in agriculture from agricultural production to agro-processing since they all
contribute to food security, income generation, wealth creation and poverty alleviation.
Furthermore, we must empower ourselves with digital and soft skills such as creativity,
analytical thinking, judgment and decision making, communication and technology skills, for
productivity and profitability in the new world of work. As a corollary to this, young people
must leverage various digital platforms for continuous learning and national development. It
would not be out of place to assert that the South East Asian Countries such as South Korea,
Taiwan, Singapore and Hong Kong also referred to as the Asian Tigers improved the standards
of living of hundreds of millions of people in their nations and enhanced their socio-economic
development via this approach (Mascelluti, 2019).
In addition, industry stakeholders, professionals, governmental and non-governmental
organizations such as the Champions Education Foundation, Tony Elumelu Foundation, Africa
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Data Hub, McKinsey and the Mastercard Education must bridge the literacy gap amongst
youths in the country. Such could be done by promoting STEM education that would empower
people with the skills, knowledge and abilities (SKAs) relevant to their economic independence
in the nation. Similarly, educational initiatives such as conferences, seminars and symposiums
should be carried out across rural and urban areas in the nation. Consequently, this would
contribute towards developing smart citizens for sustainability in the country.
However, to achieve socio-economic growth and sustainable national development in Nigeria,
there is a dire need for more than entrepreneurship development and self-empowerment. But
rather, we must re-orientate the value system of transformational leadership, responsible living
and effective management in our people. In fact, sustainable empowerment may not translate
into socio-economic development unless it is inspired by a genuine passion to reflect change.
Anzaa (2019) articulates that:
“…every Nigerian must develop selfless love for humanity in general and the country
in particular in solving our socio-economic challenges. For instance, we may offer
scholarships for young people or make a donation of food and medical supplies to
empower the poor in the country. But what if these empowerment programs are
commercialised or diverted? We must inspire patriotic virtues in our people’s minds
and a culture of “Ask Not What Your Country Can Do for You—But Ask What You
Can Do for Your Country…”
6.0 Conclusion
Indeed, for Nigeria to achieve her socio-economic growth and sustainable national
development, we must all commit ourselves towards reversing our poor socio-economic trends.
More fundamentally, we must all work towards this common vision—to build the Nigeria of
our dreams—and ensure that every Nigerian is on board towards achieving this reality.
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REFERENCES
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Dawud (2020): Socioeconomic Problems of Ethiopian Young Adults as Reflected in Three
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