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Job creation through demand-induced policies

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Job

By Nosa Osaikhuiwu,

 

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Nigeria’s teeming population should be viewed not as a burden but as an enormous economic asset that can and must be harnessed for national economic transformation and sustainable development.

Also read: Uber Unveils London Robotaxi After Nigeria Exit

With a population already exceeding 200 million and projected to approach 300 million by the end of the century, Nigeria cannot afford to continue responding only to the challenges of today. We must begin implementing policies that anticipate the economic, social and employment challenges of tomorrow.

One of Nigeria’s most urgent challenges is unemployment, particularly among young people. This problem affects both graduates and the much larger segment of our population without formal education or marketable technical skills. The fundamental question, therefore, is not simply how government can create jobs, but how government can create the economic conditions under which millions of sustainable jobs can be created by the private sector.

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Recognizing the Necessary Economic Reforms

Before addressing job creation, it is important to acknowledge some of the major economic reforms undertaken by the current administration.

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While these policies have been unpopular in some quarters and have imposed significant hardship on households and businesses, the removal of fuel subsidies and the move toward greater alignment of foreign-exchange rates were, in my view, necessary steps toward restoring some degree of economic stability.

The manner and timing of implementation can certainly be debated. However, it is difficult to dispute that maintaining a system in which government could no longer sustainably finance fuel subsidies, while simultaneously maintaining significant distortions in the foreign-exchange market, was becoming increasingly untenable.

The immediate consequences have been severe for millions of Nigerians. Nevertheless, if these reforms are properly managed and followed by policies that stimulate production, investment and employment, Nigeria can ultimately emerge stronger.

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However, some of the noise in some political quarters about reversing the fuel subsidy removal is not only disingenuous, it is playing to the gallery of public sentiments which betrays a lack of seriousness on their part.

The next phase, therefore, must be about growth, production and job creation. Manufacturing Is Essential: But Manufacturing Alone Is Not Enough

I strongly agree with the position repeatedly expressed by Nigerian industrialist Aliko Dangote that manufacturing is critical to job creation in Nigeria.

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Manufacturing creates direct employment in factories, but its impact extends far beyond the factory floor. It creates demand for raw materials, transportation, logistics, warehousing, engineering, maintenance, packaging, distribution, financial services and countless other activities.

However, I would take this argument one step further, because a sustainable manufacturing industry requires demand.

A factory can produce thousands of beds, furniture sets, refrigerators, or other locally manufactured products, but production cannot continue indefinitely if consumers lack the purchasing power to buy those products. This is where government policy must become more sophisticated.

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Rather than government attempting to employ everyone directly, it should create an economic environment in which production generates employment and employment generates purchasing power, which in turn creates demand for more production. That is the economic cycle Nigeria must deliberately build.

 

Creating a National Credit Economy

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One of the most powerful instruments available to us is a properly regulated consumer and business credit system. In advanced economies, access to responsible credit has played an important role in improving living standards and expanding economic activity.

Consumers do not necessarily have to possess the full amount of money required to purchase a house, vehicle, furniture or other durable goods before making the purchase.

Properly structured credit allows them to acquire those goods today and pay over time. That creates immediate demand for manufactured products.

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The manufacturer receives payment. The factory continues producing. Workers retain their jobs. Suppliers receive orders. Transporters move products.

Financial institutions earn interest. Government receives taxes. Employees spend their income elsewhere in the economy. One transaction can therefore generate an economic chain far larger than the original purchase.

 

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The Following Steps Are Essential

 

  1. Establish a Unified National Database

Nigeria needs a comprehensive national database integrating biometric information and a unique National Identification Number for every citizen and legally resident person. A reliable identity infrastructure is fundamental to modern financial services, taxation, credit assessment, social programs and economic planning.

  1. Reform the Credit Bureau System

Credit bureau legislation should be strengthened and modernized, allowing banks and regulated financial institutions to play a greater role in developing a robust credit-information ecosystem, subject to strong government regulatory oversight. Every Nigerian who participates in the formal financial system should gradually develop a verifiable credit history. Good financial behavior should have benefits. Persistent default should have consequences.

  1. Accelerate the Transition to a Cashless Economy

Nigeria should establish a realistic but ambitious transition toward a predominantly cashless economy within 36 months. This should not be about punishing Nigerians who use cash. It should be about creating a transparent, traceable and efficient financial system that reduces the size of the informal cash economy and makes it easier to assess income, spending, creditworthiness and tax obligations.

  1. Gradually Restrict Excessive Cash Transactions

Government should consider progressively restricting large cash withdrawals and transactions, with appropriate exemptions for legitimate businesses and special circumstances. Such a policy must, however, be carefully designed so that it does not inadvertently harm small businesses or citizens who remain outside the formal banking system. The objective should be financial inclusion and transparency, not financial exclusion.

  1. Expand Consumer and Manufacturer Financing

Legislation and regulation should facilitate financing arrangements through which manufacturers can sell locally produced goods to consumers on credit while financial institutions assume and manage the repayment risk. Imagine a Nigerian family being able to purchase locally manufactured furniture, beds, household appliances or other durable goods and pay over 12, 24 or 36 months.

The manufacturer gets paid.

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The consumer gets the product.

The bank earns legitimate interest.

The factory continues producing.

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Workers remain employed.

And the economy expands.

This is the kind of demand-induced economic growth Nigeria should pursue.

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But Credit Requires Culture Change

There is, however, a major obstacle to implementing such a system in Nigeria. Credit cannot function effectively without trust, integrity and a culture of repayment.

This brings us directly to what I have identified in my previous writings as the QUAD – four interconnected cultural problems that continue to undermine Nigeria’s development:

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  1. Unethical behavior
  2. Greed
  3. Lack of integrity
  4. Permissiveness—the “Oga Abeg” culture

Too many Nigerians have historically viewed loans and government-supported credit schemes as free money that should not necessarily be repaid. That mindset must change.

If a person obtains a bank loan to purchase locally manufactured furniture, a vehicle, equipment or other goods, repayment is not optional. It is a contractual obligation. Failure to repay should affect the individual’s ability to access future financial services.

A properly integrated financial architecture should ensure that a poor credit record follows a borrower across regulated financial institutions and digital financial platforms, subject to due process and appropriate consumer protections.

Banks, fintech companies and regulated payment platforms should be able to participate in a credible national credit-information ecosystem.

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But this cannot be achieved through regulation alone. Nigeria needs a massive national public-awareness campaign on the meaning of credit, contractual obligations and financial responsibility. This is another example of why economic transformation without culture change will remain incomplete.

 

Rethinking Youth Employment

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We cannot continue producing millions of graduates who are jobless while simultaneously importing technicians and skilled workers and leaving young Nigerians without practical skills or employment opportunities.

The recent initiative by the Federal Government of Nigeria under the Tinubu/Shettima Administration to reform the National Youth Service Corps (NYSC) is commendable.

However, the reform of the NYSC will be incomplete if it does not transition NYSC into a National Skills and Apprenticeship Program that will help train and equip our young men and women with skills that will help them earn a living as entrepreneurs or be gainfully employed.

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Nigeria must also rethink the purpose of education. I would advocate an optional SECOND year of National Service dedicated specifically to skills acquisition and apprenticeship.

Young Nigerians could receive structured training in areas such as:

  • Automobile technology and diagnostics
  • Electrical installation and maintenance
  • Construction management
  • Fashion and design
  • Collision repair and auto bodywork
  • Agriculture and poultry operations
  • Welding and fabrication
  • Firefighting and emergency services
  • Computer hardware and maintenance
  • Software development
  • App development
  • Coding and programming
  • Artificial intelligence
  • Renewable energy technology
  • Plumbing
  • Refrigeration and air-conditioning
  • Industrial maintenance

The program should be developed in partnership with private-sector employers, manufacturers, technical institutions and professional bodies.

At the end of the program, participants should receive a nationally recognized industry certification demonstrating basic professional competence.

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This would transform NYSC from merely a national service program into a major national workforce-development and apprenticeship system.

The Automobile Sector Alone Offers Enormous Opportunities

Consider the automobile sector. Nigeria has millions of vehicles on the road, yet many mechanics operate without formal training. At the same time, modern vehicles are increasingly computerized and technologically sophisticated.

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The mechanic of tomorrow will need to understand electronics, diagnostics, computer systems, sensors and software, not merely engines and mechanical components.

A national automotive apprenticeship program could therefore create hundreds of thousands of skilled technicians over time while reducing dependence on foreign expertise.

 

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The same principle applies to virtually every technical occupation. Nigeria does not have a shortage of work. Nigeria has a shortage of properly organized opportunities to convert work into productive employment and enterprise.

 

Ethanol: Turning Agriculture into Energy and Employment

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Another opportunity lies in the development of an ethanol-blended fuel program. Nigeria should seriously consider adopting a national ethanol-blending policy, potentially beginning with a 10 percent blend and progressively evaluating higher blends based on technical and economic feasibility. Such a policy could stimulate demand for cassava, maize and other suitable feedstocks.

That demand would create opportunities for farmers, agricultural aggregators, and brokers, processing companies, logistics operators, transporters, equipment suppliers and storage facilities.

The economic impact would therefore extend far beyond the ethanol plant itself. Rather than importing every unit of energy we consume, Nigeria could create a domestic agricultural-energy value chain.

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With the right policies, this could generate substantial employment over time. The precise number of jobs should, of course, be determined through detailed feasibility studies, but the principle is compelling: energy policy can simultaneously become agricultural policy, industrial policy and employment policy.

 

Security and Employment

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Nigeria’s security crisis also requires a fundamentally different approach. We need to build a much stronger human-intelligence capability at the community level.

A large national network of trained intelligence personnel could provide communities, security agencies and government with timely information about criminal activity, kidnapping networks, banditry and terrorism.

Such a program would need to be carefully structured, professionally trained, legally regulated and integrated with existing security agencies. It must not become an uncontrolled vigilante system.

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The objective should be to create a professional intelligence architecture in which ordinary citizens can become an additional source of reliable information for national security.

Security itself can therefore become an area of structured employment while simultaneously strengthening the country’s ability to prevent crime.

 

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Government Should Stop Trying to Be the Entrepreneur

Another important component of Nigeria’s economic transformation should be a gradual reduction in government’s ownership and management of commercial enterprises.

Government’s principal responsibility should be to provide:

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  • Clear regulations
  • Infrastructure
  • Security
  • Efficient taxation
  • Reliable identity systems
  • Access to finance
  • Fair competition
  • Effective institutions

The private sector should increasingly be allowed to serve as the primary engine of production, innovation and employment. Government does not have to own every factory in order to create jobs. It needs to create the enabling environment in which thousands of factories can be profitably established and operated by Nigerians and investors.

Thus, I recommend that the Tinubu/Shettima Administration completely privatize the NNPCL refineries and if there no takers decommission them as they have become a source waste, fraud and abuse.

 

Affordable Housing as an Economic Engine

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Housing provides another powerful example of demand-induced growth. Nigeria should develop long-term mortgage financing, initially targeting public servants such as police officers and members of the armed forces, with mortgage payments deducted directly from salaries.

A properly structured 10 to 15-year mortgage scheme could allow workers to acquire homes while creating demand across an enormous range of industries.

A single housing project requires:

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  • Cement
  • Steel
  • Doors and windows
  • Electrical equipment
  • Plumbing materials
  • Tiles
  • Furniture
  • Roofing materials
  • Engineering services
  • Architects
  • Surveyors
  • Lawyers
  • Transporters
  • Laborers
  • Security services

Housing finance therefore does much more than provide shelter. It creates an economic ecosystem. Once properly established and proven, such schemes could be expanded to the wider population, with government providing the regulatory framework while private financial institutions and developers provide the capital and expertise.

 

The Bigger Picture

Nigeria’s unemployment problem cannot be solved by government simply announcing another recruitment exercise. Nor can it be solved by distributing temporary cash transfers indefinitely.

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We need to create an economic system in which people have the skills to work, businesses have the capacity to produce, consumers have the purchasing power to buy, financial institutions can responsibly provide credit, and borrowers understand that credit must be repaid.

That requires simultaneous reforms in education, finance, manufacturing, agriculture, energy, housing, security and culture.

Most importantly, it requires a change in mindset. We must move away from the belief that government is responsible for providing everything and toward a system in which government creates the conditions for citizens and businesses to become productive economic participants.

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Nigeria’s population should not frighten us, but should inspire us. Two hundred million Nigerians represent two hundred million potential consumers, workers, entrepreneurs, farmers, engineers, technicians, inventors and business owners.

If properly educated, properly organized and connected to functioning markets and financial systems, this population can become one of Nigeria’s greatest economic advantages.

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But population alone is not an asset. A productive population is an asset. And productivity requires skills, integrity, and access to capital, infrastructure, security and demand.

That is why Nigeria’s next economic strategy should not focus exclusively on increasing production. We must also deliberately create the purchasing power that sustains production.

The objective should be simple:

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Produce more.

Buy more.

Employ more.

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Earn more.

Invest more.

Produce even more.

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That is the cycle of demand-induced economic growth that Nigeria must build. And ultimately, none of these reforms will be sustainable without the cultural transformation that underpins them.

Economic transformation requires culture change. Without ethics, integrity, responsibility and a rejection of the “Oga Abeg” mentality, even the best economic policies will continue to produce disappointing results.

Also read: Uber Unveils London Robotaxi After Nigeria Exit

Nigeria therefore needs not merely a new economic policy.

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Nigeria needs a new economic culture.

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Opinion

Tegbe’s 24-Hour Energy Zones and the Shift From Megawatts to Money

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Tegbe

 By Sufuyan Ojeifo,

There is a point at which a country’s electricity problem ceases to be merely an electricity problem. It becomes a problem of economic geography.

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Also read: Everton Celebrates Nigeria’s 66th Independence With Football Legends

Where can factories operate with confidence? Where can businesses plan beyond the next appearance of a generator? Where can hospitals, schools, technology companies, markets and households begin to organise their lives around the reasonable expectation that electricity will be there?

This is the thinking behind the latest initiative from the Minister of Power, Joseph Tegbe, to develop what the Federal Government calls Energy Zones – defined corridors where homes, businesses and industries could receive stable, 24-hour electricity.

The proposed zones cover the Lagos axis, the Abuja-Kaduna-Kano corridor and the Enugu-Port Harcourt corridor. Tegbe’s latest move is a meeting with selected electricity distribution companies to begin working through what it would take to make the idea real.

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At first glance, it sounds like another promise of uninterrupted electricity in a country that has heard too many such promises. However, there is something more consequential in the architecture of the proposal.

Tegbe is asking Nigerians to look at the power problem differently.

For years, the national conversation has been dominated by generation. How many megawatts are being produced? How much can the transmission grid carry? How many generating plants are working? These are important questions. But electricity does not become useful simply because it has been generated.

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It must travel. It must be received. It must be distributed. And ultimately, somebody must be able to use it. That last part has often been treated as the end of the conversation when, in reality, it is where the economic value of electricity begins.

Tegbe has put the point plainly. The constraint is not limited to generation and transmission; it also includes how much electricity can be taken up and delivered at the distribution end.

The proposed Energy Zones are intended to address precisely that gap while improving commercial demand and the revenue performance of the distribution companies.

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There is an important idea here.

Nigeria does not necessarily have to wait for every weakness in the electricity value chain to be solved simultaneously before beginning to create pockets of reliability.

A country of more than 200 million people, with enormous differences in industrial activity, population density and commercial demand, may have to proceed through carefully selected economic corridors while the wider system is repaired.

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This is not an argument for abandoning the national grid. It is an argument for making the grid more economically purposeful.

The three corridors selected by the Ministry are revealing. Lagos and its adjoining industrial axis represent perhaps the country’s most concentrated commercial and industrial demand.

The Abuja-Kaduna-Kano corridor connects the political capital with major commercial and industrial centres in the North. Enugu-Port Harcourt links important commercial, manufacturing and energy-producing communities in the South-East and South-South.

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These are not simply lines on a power map. They are lines on Nigeria’s economic map. That distinction matters.

For too long, Nigerians have experienced electricity largely as a household inconvenience. The light goes off. The generator comes on. A business buys diesel. A manufacturer factors self-generation into production costs. A hospital makes contingency arrangements.

A young entrepreneur learns, often painfully, that the real price of electricity is not what appears on the bill but what it costs to keep the business alive when the supply fails.

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A reliable electricity corridor changes that equation.

If a factory knows that a particular industrial cluster has dependable power, investment decisions begin to change.

If a commercial district can plan around predictable electricity, operating costs become easier to manage.

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If businesses can depend on supply for most of the day, generators can move from being the first line of defence to being what they were always supposed to be: backup.

This is where Tegbe’s technocratic instincts may prove significant.

His background is not that of a career power-sector operator. His professional experience has largely been in consulting, fiscal and economic reform, institutional transformation and advisory work. That background has been visible in his early approach to the ministry – diagnosis, audits, financial questions, infrastructure bottlenecks, and attempts to identify where one part of the system is preventing another from functioning properly.

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His Energy Zones proposal fits that pattern. It treats the electricity market less as a single machine waiting for one dramatic repair and more as a system of interconnected constraints that can be isolated, diagnosed and addressed.

Tegbe had already identified the three corridors as priorities for grid stabilisation, with technical audits intended to establish the condition of critical infrastructure. The latest engagement with DisCos suggests that the idea is now moving beyond technical diagnosis towards the more difficult question of how distribution will work within those corridors.

That is where the hard work begins.

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A 24-hour power zone cannot be created by a press statement. It requires generation that is available when needed, transmission capacity that can carry it, distribution infrastructure capable of receiving it, transformers and feeders that can withstand the load, metering that properly captures consumption, customers willing and able to pay, and a commercial structure in which the various participants have an incentive to keep the system working.

It also requires protection. Vandalism and energy theft do not respect administrative boundaries. Neither do faulty equipment, unpaid bills or poor collection practices. Tegbe himself has acknowledged that the sector’s problems reinforce one another. Weak collections affect the market. Market weakness affects maintenance and gas payments. Unreliable supply in turn depresses collections.

This is why the Energy Zone experiment, if it is to succeed, must be judged by more than the number of hours electricity is available.

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The real test will be whether reliability begins to produce economic consequences. Does industrial output increase? Do businesses spend less on self-generation? Does investment respond? Do DisCos collect more because customers are receiving a service they can trust? Does the government recover enough value from improved commercial activity to justify further infrastructure investment?

Those are the questions that should eventually accompany the glossy language of 24-hour power.

And there is another question that Tegbe and the Federal Government will have to confront: what happens outside the zones?

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Nigeria cannot become a collection of electrically privileged corridors surrounded by communities waiting indefinitely for their turn.

The logic of concentrating investment in high-demand areas can be defended economically, especially if the resulting commercial activity strengthens the wider electricity market.

But the strategy will ultimately have to demonstrate how successful zones become stepping stones towards broader reliability.

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That is the difference between an experiment and a system.

There is also a danger in admiring the architecture of reform from the comfort of an office.

It has to be said here that the statement issued by the minister’s media aide was long on ambition and conspicuously short on the details that matter. No timeline. No capacity targets. No specific investment figures. It is the kind of announcement that has, historically, been the precursor to nothing at all.

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So Nigerians should watch the idea with interest, but also with the healthy scepticism that comes from decades of promises about electricity.

The minister deserves a measure of credit for at least diagnosing an important part of the illness.

For once, the conversation has shifted from the head to the feet – from generation to distribution, from megawatts to money.

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At the same time, the Nigerian people have been given blueprints before. They have learned to admire the drawings while the building crumbles.

The Energy Zones remain a proposal. The government has not yet announced the detailed capacity requirements, implementation timetable or precise infrastructure investments that would make 24-hour supply possible.

That is not necessarily a fatal flaw. It may simply mean the idea is still being worked out.

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But it does mean that the language of 24-hour power should be treated as an aspiration until it is matched by the machinery of implementation.

Yet the proposal deserves attention because it reflects a potentially important shift in the way the power problem is being conceived.

Nigeria may not fix its electricity crisis in one heroic sweep. It may have to build reliability corridor by corridor, demand centre by demand centre, and economic cluster by economic cluster.

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There is nothing inherently glamorous about such work. It is engineering, finance, regulation, distribution and relentless attention to the weak link in the chain. But perhaps that is precisely the point.

The country has spent decades waiting for the great national electricity breakthrough.

Tegbe’s emerging approach suggests something less dramatic and potentially more practical: make a few economically critical parts of the system work properly, learn from them, strengthen the model, and expand it.

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The success of that approach will ultimately be measured not in speeches or megawatts, but in what Nigerians can do with the electricity when it arrives.

Does the factory run a second shift? Does the business hire more workers? Does the hospital keep its equipment running through the night? Does the young entrepreneur stop budgeting for diesel and start budgeting for growth?

Also read: Everton Celebrates Nigeria’s 66th Independence With Football Legends

That is where the real power story begins. And that is the standard against which Tegbe’s Energy Zones should ultimately be judged: not by whether 24-hour power sounds impressive in a press release, but by whether the lights stay on long enough for Nigerians to build something with them.

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