NLC Labels NBS Unemployment Report a “Voodoo Document,” Says Data Misleading

The Nigerian Labour Congress (NLC) has strongly criticized a recent report by the National Bureau of Statistics (NBS) that indicated a decline in Nigeria’s unemployment rate to 4.3% in the second quarter of 2024. The NLC dismissed the report as disconnected from reality, arguing that it fails to capture the economic challenges facing the country.

According to the NBS, the unemployment rate dropped from 5.3% in the first quarter of 2024, signaling an improvement in labor market conditions. The report highlighted a rise in the Labour Force Participation Rate to 79.5% and an increase in the Employment-to-Population Ratio to 76.1%. Informal employment accounted for 93% of jobs, while self-employment remained dominant at 85.6%. Youth unemployment also reportedly decreased, and rural unemployment was noted at a significantly lower rate of 2.8% compared to 5.2% in urban areas.

However, NLC representatives sharply disagreed with the data. Chris Onyeka, the National Assistant General Secretary of the NLC, referred to the figures as a “voodoo document,” accusing the NBS of manipulating data to paint a misleading picture. Onyeka argued that factory closures, reduced consumer spending, and rising inventories contradict claims of improved employment. He questioned the methodology used by the NBS and urged the agency to provide evidence of the alleged job growth.

Other organizations in the private sector echoed the NLC’s skepticism. Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry, described the report as reflecting a “technical improvement” rather than actual economic progress. Idahosa pointed out that the current methodology for calculating unemployment does not align with the visible struggles of businesses and workers.

Similarly, Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, criticized the report for failing to capture the true state of the economy. He highlighted the slow growth of key sectors such as agriculture, manufacturing, trade, and real estate—industries traditionally responsible for job creation. Yusuf also emphasized the challenges faced by small and medium-sized enterprises, including rising energy costs, currency exchange issues, and regulatory obstacles.

Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria, offered additional insights, suggesting that the apparent drop in unemployment might result from reclassification of informal or subsistence work as employment. He called for a more comprehensive approach to measuring economic well-being, one that includes metrics such as income distribution and poverty levels.

The NBS report comes at a time of widespread economic hardship, with many Nigerians grappling with inflation and declining purchasing power. Critics argue that while the report suggests progress, the figures do not reflect the lived experiences of the population or the struggles of businesses trying to stay afloat. They have called for a review of the methodologies used by government agencies to ensure more accurate and credible data.