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THE CONTRIBUTION OF NATIONAL DIRECTORATE OF EMPLOYMENT IN ALLEVIATING UNEMPLOYMENT PROBLEM

CHAPTER ONE

INTRODUCTION 

1.1 BACKGROUND OF THE STUDY

Employment has been viewed as a key mechanism for the transmission of economic growth as well as poverty reduction both directly and indirectly by providing incomes while also stimulating demand at both the macro and micro levels (Islam, 2004). According to Holmes, McCord & Zanker (2013), there is strong empirical evidence that employment creation generally increases incomes and reduces poverty in low-income countries at both micro and macro levels. The relationship between unemployment and poverty is very complex in Nigeria. While the unemployment rate has remained very high due to the rising rate of poverty, the poverty rate has equally remained high due to the high level of unemployment. The Nigeria Economic Report released by the World Bank in 2011 stated that the unemployment rate worsened from “12% of the working population in 2006 to 24% in 2011”. Available records clearly show that in the last two decades of the independence of Nigeria as a sovereign nation (1960s and 1970s), unemployment and its attendant consequence: poverty, were not of national concern as they are today.

The origin of unemployment in Nigeria can be traced back to the oil boom era of the 1970s. During this period, the Nigerian government and individuals abandoned skills acquisition and utilization through diversified entrepreneurship practices that have the capability to boost both individuals and the country’s economic ego. Emphasis shifted from entrepreneurial practices to paper qualification which has resulted in increased unemployment in the country. To tackle poverty therefore the menace of unemployment must be checked through a very effective employment policy. According to Okafor (2010), youth unemployment in any country is an indication of far more complex problems. More than half of the Nigerian population is under the age of 30 (NPC, 2001). Hence, it can be asserted that the economy of Nigeria is a youth economy (Oviawe, 2010).

The Nigerian government in 2008 stated that 80 % of Nigerian youth were unemployed while 10 % were underemployed (Daily Trust, 2008). In fact, Statistics from the Federal Manpower Board and the Bureau of Statistics in 2011 noted that the Nigerian youth population is about 80 million, representing 60% of the total population of the country. Sixty four million youths are unemployed, while 1.6 million are under-employed. The urban youths, aged 20 – 24 had an unemployment rate of 40% while those aged between 15 – 19 years had an unemployment rate of 31% (Emeh, Nwanguma and Abaroh, 2012). The pace is increasing because most graduates lack relevant marketable skills. The Nigerian youths are said to be confronted with poverty, unemployment, urbanization, lack of capacity and skills needed to move the economy forward. The National Poverty Eradication Programme (NAPEP) in 2001 stated that the universities and other tertiary institutions in the country produce an average of 120,000 graduates each year while another 500,000 school leavers or college graduates are turned out each year, without the hope of any job (NEEDS, 2004).

Furthermore, there have been sad tales of 700,000 applicants jostling for 5,000 positions in the customs, let alone the Nigeria police. When Comrade Oshiomole advertised for 10,000 job vacancies for graduates, over 100,000 jobless applicants turned in their applications (Oviawe, 2010). NAPEP asserted that 50% of the unemployed are assumed to be youths (Punch, 2003).This situation affects sustainable national development adversely. Youth development and empowerment are vital stages in life for building the human capital that allows young people to avoid poverty and lead better, and possibly more fulfilling life. The human capital formed in youth is thus an important determinant of long term growth that a nation can invest on. Hence, making sure that youths are well prepared for their future is enormously important to the course of poverty reduction and growth.

The Nigerian government, in response to the clarion call have continued to strive to contain the contagious effect of youth unemployment by providing youth development and empowerment programmes, to develop and empower the Nigerian youths to enable them contribute to the development of the nation and take over the leadership of the country. However, the results have remained terribly unimpressive. Despite the various efforts of government, stakeholders and economic players, by establishing a number of programmes such as the National Directorate of Employment (NDE), the National open Apprenticeship Scheme (NOAS), the National Poverty Eradication Programme (NAPEP), the Better Life, Family Support and the Family Economic

Advancement Programme (FEAP) during the life span of various administrations to address the hurdles of poverty and unemployment, this monster among Nigerians is still on the speed lane. According to Abiodun (1998), millions of Nigerian youths who graduated from the Universities, Polytechnics and other tertiary institutions cannot find jobs and appropriate avenues to positively utilize their youthful energies, let alone the unskilled, uneducated youths in the rural areas, which are at the height of their physical and mental powers. Naturally, this segment should form the productive foundation of the economy of any nation, but in Nigeria they roam the streets in search of livelihood and employment opportunities.

Consequently, in frantic efforts to seek a way out of the problem the Federal Government constituted the Chukwuma Committee in 1986 to consider appropriate strategies for dealing with mass unemployment problem in the country under the Ministry of Employment Labour and Productivity and the work of the Chukwuma Committee, among others gave birth to the NDE. It is against the foregoing that this paper is produced to investigate the contributions of the NDE in curbing the menace of unemployment and poverty in Nigeria with particular reference to Niger State.

1.2 STATEMENT OF THE PROBLEM

Nigeria has retrogressed to become one of the 25 poorest countries at the threshold of the twenty-first century and remains the only member of the Organization of Petroleum Exporting Countries (OPEC) categorized among the world’s poorest twenty countries. Most recently, the Minister of Youth Development reported that 42.2 percent of Nigeria’s youth population is out of job (Oviawe, 2010). The National Bureau of Statistics (2012) states that the rate of unemployment among economically active Nigerians between the youthful ages of 15 and 24 was as high as 37.7 % in 2011 while among those within the age bracket of 25 and 44 years, was 22.4 %. For age brackets of 45 and 59, the rate stood at 18.0 % while it was 21.4 % among those within the age bracket of 60 and 64. The translation of this is that Nigerians between the youthful ages of 15 and 24 are those mostly affected by unemployment and are, as such, more vulnerable to its attendant consequences. This evidence is collaborated by the World Bank report (2016) which states that the unemployment rate among Nigerians between the ages of 15 and 24 was 13.8 % in 2011; 13.7 % in 2012; 13.6 % in 2013; and 13.6 % in 2014.

The 2012 National Baseline Youth Survey Report (NBYSR) issued by NBS in collaboration with the Federal Ministry of Youth Development in December 2013 confirmed that more than half, about 54 % of the Nigerian youth population, were unemployed. The survey classified youth to be those between ages of 15 and 35. According to the survey, the population of youths aged 15 and 35 years in Nigeria is estimated to be 64 million. This may be corroborated from the views of Leonard and Kazi (2012); who state that despite the fact that Nigeria's economy is projected to be growing, poverty rate in Nigeria was 71.5%, 61.9%, and 62.8% using the relative, absolute and $1 a day measures respectively. It is against the backdrop of these statistics that the study intends to assess the National Directorate of employment in order to ascertain their contributions towards ameliorating the situation enumerated above, with special attention to its impact on poverty reduction through employment generation in Nigeria.

1.3 OBJECTIVES OF THE STUDY

The main objective of this study is to determine the contribution of national directorate of employment in alleviating unemployment problem.

Specific objectives include;

1. To assess the effectiveness of the National Directorate of Employment (NDE) programs in reducing unemployment rates in Nigeria.

2. To identify the challenges faced by the NDE in implementing its employment generation initiatives.

3. To explore the perceptions of beneficiaries and stakeholders regarding the impact of NDE interventions on alleviating unemployment.

1.4 RESEARCH QUESTION

1. How effective are the employment programs initiated by the National Directorate of Employment (NDE) in addressing unemployment in Nigeria?

2. What are the main obstacles encountered by the NDE in executing its employment generation strategies?

3. What are the attitudes and opinions of beneficiaries and stakeholders regarding the efficacy of NDE interventions in combating unemployment?

1.5 RESEARCH HYPOTHESES

1. H0: There is no significant relationship between NDE programs and the reduction of unemployment rates in Nigeria.

   H1: There is a significant relationship between NDE programs and the reduction of unemployment rates in Nigeria.

2. H0: The challenges faced by the NDE in implementing employment initiatives do not significantly hinder their effectiveness.

   H1: The challenges faced by the NDE in implementing employment initiatives significantly hinder their effectiveness.

3. H0: There is no significant difference between the perceptions of beneficiaries and stakeholders regarding the impact of NDE interventions on alleviating unemployment.

   H1: There is a significant difference between the perceptions of beneficiaries and stakeholders regarding the impact of NDE interventions on alleviating unemployment.

1.6 SIGNIFICANCE OF THE STUDY

The significance of the study lies in its potential to provide valuable insights into the effectiveness of the National Directorate of Employment (NDE) in addressing the unemployment problem in Nigeria. By examining the contributions of the NDE's programs and initiatives, the study can offer policymakers, government agencies, and other stakeholders a comprehensive understanding of the strengths, weaknesses, and areas for improvement within the NDE's framework.

Furthermore, the study's findings can inform future policy decisions aimed at enhancing employment generation strategies and maximizing the impact of government interventions on reducing unemployment rates. Understanding the significance of the NDE's role in alleviating unemployment is crucial for fostering sustainable economic development, social stability, and inclusive growth in Nigeria.

Moreover, by evaluating the NDE's contributions from multiple perspectives, including beneficiaries and stakeholders, the study can provide a holistic assessment of the agency's impact on the ground. This can help identify best practices, address challenges, and enhance the accountability and transparency of government initiatives in tackling unemployment.

Overall, the significance of the study lies in its potential to inform evidence-based policymaking, improve the efficiency and effectiveness of employment generation programs, and ultimately contribute to the socioeconomic development of Nigeria.

1.7 SCOPE OF THE STUDY

This study focuses on evaluating the contribution of the National Directorate of Employment (NDE) in alleviating the unemployment problem specifically within Niger State, Nigeria. It examines the implementation and effectiveness of NDE programs and initiatives targeted at reducing unemployment rates in the region. The scope encompasses various aspects such as the types of programs offered, their reach, and the perceptions of beneficiaries and stakeholders. By concentrating on Niger State, the study aims to provide localized insights that can inform targeted policy interventions and strategies to address the unique challenges and dynamics of unemployment in the region.

1.8 LIMITATIONS OF THE STUDY

Despite its focus on Niger State, this study may encounter limitations regarding the generalizability of its findings to other regions in Nigeria. The scope is restricted to the availability of data and resources within the specified geographical area, potentially limiting the broader applicability of the conclusions drawn. Additionally, the study may face challenges related to access to comprehensive data on NDE programs and their outcomes, as well as the perspectives of beneficiaries and stakeholders. Furthermore, the dynamic nature of socio-economic factors influencing unemployment could impact the study's ability to capture all relevant variables and their effects accurately.

1.9 DEFINITION OF TERMS

1. National Directorate of Employment (NDE): An agency of the Federal Government of Nigeria tasked with the responsibility of designing and implementing employment generation programs to combat unemployment and enhance job creation across various sectors of the economy.

2. Unemployment: The state of being without a job despite actively seeking employment opportunities. It is often used as a measure of the health of an economy and the effectiveness of government policies aimed at job creation.

3. Alleviating: The act of reducing or lessening the severity of a problem. In the context of this study, it refers to the efforts made by the National Directorate of Employment (NDE) to mitigate the challenges associated with unemployment through its programs and interventions.

4. Contribution: The impact or effect that the National Directorate of Employment (NDE) programs and initiatives have on reducing unemployment rates and improving the employment situation in Nigeria. 

5. Employment Problem: Refers to the challenges and issues related to the insufficient availability of jobs or the mismatch between available jobs and the skills and qualifications of the workforce. It encompasses both structural and cyclical aspects of unemployment within a given economy.

6. Impact: The measurable effect or influence of the activities and interventions carried out by the National Directorate of Employment (NDE) on the overall unemployment situation in Nigeria. It includes both quantitative and qualitative assessments of the outcomes of NDE programs.

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