Rising Unemployment in Nigeria: 300 Companies Closed, 380,000 Jobs Lost in Two Months.Â
PenCom Disburses N14.2 Billion to 8,651 Nigerians
In a concerning development for Nigeria’s economy, over 300 companies have shut down in the past two months, resulting in the loss of approximately 380,000 jobs. This revelation came to light during an investigative hearing in Abuja, where Senator Ahmed Abdulkadir, speaking on behalf of the Manufacturers Association of Nigeria (MAN), highlighted the severe impact of escalating electricity-related costs on manufacturing operations.
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During the hearing organized by the Joint Committees on Power, Commerce, National Planning & Economic Development, and Delegated Legislations, Senator Abdulkadir underscored that electricity expenses alone account for about 40% of production overheads for manufacturing firms. This significant financial burden has contributed substantially to the closure of numerous businesses across the country.
The closure of these companies has exacerbated Nigeria’s unemployment crisis, with more individuals entering the labour market due to various factors, including economic downturns and operational challenges faced by businesses. The National Pension Commission (PenCom) has reported a response to this growing crisis by approving the disbursement of N14.2 billion to 8,651 Nigerians who experienced temporary job loss in the first quarter of 2024.
The economic fallout from the closures has sparked widespread concern among stakeholders and policymakers, who are now grappling with strategies to mitigate the impact on livelihoods and economic stability. Efforts to address the root causes, including high electricity costs and broader economic challenges, are urgently needed to revive the affected sectors and safeguard jobs.
Ejes Gist News understands that the situation remains fluid, with ongoing discussions and initiatives aimed at restoring economic resilience and creating a conducive environment for business growth in Nigeria.
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