The Federal Government’s payment of N758 billion in outstanding pension liabilities and the decline in Nigeria’s official unemployment rate to about five per cent are signs of improving economic activity, according to the Director-General of the Michael Imoudu National Institute for Labour Studies (MINILS), Comrade Issa Aremu.
Aremu spoke during an interview on Arise TV’s Morning Show, where he assessed the government’s performance on employment, pensions, industrialisation and workers’ welfare.
He said the latest unemployment figure released by the National Bureau of Statistics (NBS), based on the methodology of the International Labour Organisation (ILO), represented a major improvement from the double-digit rates recorded in previous years.
‘Unemployment is now about 5%’
Aremu said the reduction in unemployment indicated that economic activities were expanding across both the public and private sectors.
“Today unemployment is about 5% officially. And that’s quite remarkable. You discover that unemployment dropped compared to what it used to be in double digits, which means there’s an increasing level of activity and employment, both in public and private sectors.”
He attributed part of the improvement to developments in the downstream petroleum sector, noting that the emergence of modular refineries was creating additional opportunities for employment.
Local production driving new jobs
The labour leader also identified manufacturing as another sector with potential for significant job creation.
However, he said Nigeria must tackle its electricity challenges if the country is to achieve sustainable industrialisation.
“You can’t have sustainable industrialisation without electrification,” Aremu said.
He further noted that the foreign exchange situation had encouraged several manufacturers to adopt backward integration by sourcing raw materials locally.
According to him, increased local sourcing is creating employment opportunities while reducing reliance on imported inputs.
States urged to take the lead
Aremu maintained that job creation should be pursued deliberately through appropriate industrial policies, particularly at the state level.
He argued that sustainable employment would not happen automatically, stressing that governments must consciously create an environment that encourages industrial expansion.
He also expressed support for the emerging “Nigerian First” policy, saying its implementation could further strengthen domestic production and employment.
957,045 pensioners benefit from N758bn payment
Turning to pension matters, Aremu praised the Federal Government for using an N758 billion intervention bond to settle inherited pension liabilities accumulated since 2007.
He said the payment had reached 957,045 beneficiaries across the country, describing the intervention as an important step towards resolving long-standing pension obligations.
Jobs, wages and pensions ahead of next election
Aremu also predicted that employment security, wages and pension payments would feature prominently in the next election.
The labour leader, who is also a member of the presidential campaign council, challenged political candidates to present their records on decent and secure employment rather than making fresh promises.
He credited the Tinubu administration with reforms aimed at retaining and expanding jobs in the public sector, contrasting this with what he described as mass retrenchment and downsizing associated with previous reform programmes.
Labour seeks wage-led recovery
Aremu called for an economic recovery strategy centred on job creation and improved wages.
He said organised labour must continue to engage the government through negotiations, in line with the traditional role of trade unions, particularly on the issue of a new minimum wage.
He also commended the Tinubu administration for initiating two minimum wage reviews within three years, saying the development was significant for workers.