Experts Advocate Railway Liberalisation, SME Support To Tackle Unemployment

Some financial experts have called on the Federal Government to implement a two-way approach to address the rising unemployment rate.
They made the call in separate interviews with The Tide’s source in Lagos, yesterday.
They said that this two-way approach include liberalising the railway system and providing greater support to Small and Medium Enterprises (SMEs).
They further said that these measures would not only create jobs but also stimulate economic growth and improve overall development.
Dr Ayo Teriba, CEO of Economic Associates, emphasised the potential of railway privatisation to attract private investment and unlock employment opportunities.
He suggested that allowing multiple companies to operate in the sector would foster competition, improve efficiency and create jobs in various related industries.
”Allowing for private sector investment in the railway sector, just as it was done in the telecommunication, will unlock its employment prospects.
”Where different companies will jostle to operates in the sector, thereby creating economic growth,” Teriba said.
He noted that liberalising the railway would address the headwinds associated with hullage and people commuting across the country as well as creating jobs in the process.
In his view, Mr Chris Nemedia, a former Director, Research Department, Central Bank of Nigeria, said that the SMEs remained important in job creation and economic development.
He said that the government needed to invest in infrastructure, provide tax incentives and focus on productive sectors, to support SMEs and encourage local production.
Also, Mr Boniface Okezie, President of the Progressive Shareholders Association of Nigeria (PSAN), stressed the need for improved security to attract investment and create jobs.
He called on both federal and state governments to collaborate and implement innovative strategies to address security challenges and foster a conducive business environment.
Okezie highlighted the negative impact of foreign exchange volatility on businesses.
He urged the Central Bank of Nigeria (CBN) to take measures to stabilise the market and support the growth of the private sector.
”The volatility in the market is negating businesses engaged in importation, which is slowing down their expansion process,”Okezie said.
The Tide source reports that Nigeria’s unemployment rate increased marginally to 5.3 per cent in first quarter 2024 from 5.0 per cent in third quarter 2023.
According to the latest report from the National Bureau of Statistics in urban areas, the unemployment rate remained unchanged at 6.0 per cent, while rural unemployment stood at 4.3 per cent.
The unemployment rate increased to 5.3 per cent in the first quarter of 2024 from five per cent in third quarter of 2023.
The percentage of Youth Not in Education, Employment or Training (NEET Rate) was 14.4 per cent, indicating a 0.7 perbcent increase from third quarter of 2023.