CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Unemployment is a global phenomenon, different countries of the world have had their own ordeal of unemployment. Unemployment is a key economic indicator because it signals the ability/inability of workers to readily obtain gainful work to contribute to the productive output of the economy. High, persistent unemployment can signal serious distress in an economy and even lead to social and political upheaval. At this peak of the worldwide recession that began in 2008, the international labor office announced that global unemployment reached the highest level on record. More than 200 million people, 7% of global workforce, were looking for jobs in 2009. It is not a coincidence that the global economy experienced the most severe case of unemployment during the worst economic crisis since the great depression. Unemployment is highly dependent on economic activity; in fact, growth and unemployment can be thought of as two sides of the same coins. When economic activity is high, more production happens overall, and more people are needed to produce the higher amount of goods and services. And when economic activity is low, firms reduce their workforce and unemployment rises. In that sense, unemployment is counter cyclical, meaning it rises when economic growth is low and vice versa (Global Employment Trends, 2010).
Nigeria is bedeviled with a myriad of problems, which despite her oil wealth, inhibits her development. Unemployment is one of the developmental problems that face every developing economy in the 21st century, and Nigeria is not an exemption. According to the National Bureau of Statistics (2009), the national unemployment rates for Nigeria between 2000 and 2011 showed that the number of unemployed persons constituted 31.1% in 2000; 13.6% in 2001; 12.6% in 2002; 14.8% in 2003; 13.4% in 20004; 11.9% in 2005; 13.7% in 2006; 14.6%in 2007; 14.9% in 2008; 19.7% in 2009; 21.1% in 2010 and 23.9% in 2011. In 2012, unemployment rate in Nigeria increased 24%. Such wide rate of unemployment was transmitted through the various states’ unemployment rates. In Akwa Ibom, within the period review (2000-2011), unemployment rate in Akwa Ibom State fell from 18.5% in 2000 to 12.3% in 2002. However, from then onward, it maintained a steady increased from 14.45 in 2003 to 15.3% in 2006, falling slightly to 13.5% in 2007 and then moving onward to 34.1% in 2008 and falling slightly to 25.3% in 2010. The Nigeria Economic Report released by the World Bank in 2011 stated that “unemployment rate worsened from 12% of the working population in 2006 to 24% in 2011”. Being among the top richest state in terms of crude oil production and federal; allocation in the South South region of Nigeria, unemployment rate in Akwa Ibom State is also increasing at an alarming rate. According to the National Bureau of Statistics (NBS) as at 2010, the unemployment rate of Akwa Ibom State was the second highest in the South South zone with 36.1% (National Bureau of Statistics, 2009). The situation has been on the increase and this has resulted in increased social vices in the country. Available records showed that in the last two decades of the independence of Nigeria as a sovereign nation (1960s and 1970s), unemployment and its attendant consequence: Poverty, were not of national concern as they are, today (Ekong and Ekong, 2015).
According to Ekong and Ekong (2015), the origin of unemployment in Nigeria can be traced back to the oil boom era of 1970s. During this period, Nigerian government and individuals abandoned skill acquisition and utilization through diversified entrepreneurship practices that have the capability to boost both individual and country’s economic ego. Emphasis shifted from entrepreneurial practices to paper qualification which resulted in increased unemployment in the country. Nigeria is the most populous country in Africa and the eight in the world with a population of 140 million by 2006 census with a nominal GDP of $207 Billion per capita income of $1401 it has tyrants. Unemployment in Nigeria is defined as the proportion of labor force that was available for work but do not work. In the week preceding the survey period for at least 39 hours. Official figures from the bureau of statistics puts the figure of unemployed at 19.70 per cent about 30 million but this figure still did not include about 40 million others captures in world bank statistics in 2009. By implication it means that if Nigerians population is about 140million then a great number of Nigerians are unemployed (Njoku and Okezie, 2011). Akpoveta and Agbomah (2009) said the increasing incidence of youth unemployment particularly unemployed graduate in Nigeria has been associated with existing weakness in the nation’s educational system which places more emphasis on paper qualification than functional or pragmatic education. This result in production of unemployable graduate not suited for the labour market. Damuchi (2012) capture the present manpower – labour market discrepancy and observed that the Nigeria educational system has failed to produce workers with adequate technical, cognitive and altitudinal skill required to meet labour market demand. In order to correct this abnormally and tackle the consequence of mass youth unemployment, the federal government of Nigeria in 1986 introduced the small scale industry and graduate employment scheme under the National Directorate of Employment (NDE). Aberu (2011) further stated that skill acquisition workshops and seminar are organized for unemployed graduates who are retrenched on the technicalities of starting and running small scale business (self employed) such as the production of industrial starch and cassava flour, manufacture of soap, detergents, mobile phone repairs, maintenance, marketing fashion designing etc.
Skill acquisition is a key to reduction of high rate of poverty, unemployment and insecurity as well as low level of technological development in the society. It is one of the proactive ways of ensuring the survival of individuals and invariably, economic growth and development of the nation. Afeti (2009) affirms that skill acquisition has emerged as one of the most effective development strategies that African countries need to embrace in order to train and modernize the technical workforce for rapid industrialization and national development. Eket (2009) also asserts that adequate management of employment challenges in Nigeria will have to be based, to a large extent, on a sustained strategy and policy that empowers the citizens to acquire relevant skills to become self-reliant. It is clear that without economic stability at individual and societal levels, there would be no sustainable peace and without peace, national security will be undermined and development hampered. In recognition of these facts, successive Nigerian governments and also governmental organization have put in place several policies, strategies and programmes and also established many agencies aimed at assisting citizens acquire employable skills to become economically stable. Among the governmental agencies include the National Directorate of Employment (NDE), National Poverty Eradication Programme (NAPEP), and Niger Delta Development Commission (NDDC). Non-governmental organization involved in the empowerment of youths include Shell Petroleum Development Company (SPDC), Total E&P Nigeria Ltd. (TEPNG), Nigeria Agip Oil Company (NAOC) and Nigeria Liquefied Gas (NLG). Many schemes have also been initiated to reduce poverty rates and create wealth amongst which are; National Economic Empowerment Development Strategy (NEEDS), State Economic Empowerment Development Strategy (SEEDS), Local Economic Empowerment Development Strategy (LEEDS), New Partnership for Africa’s Development (DEPAD) and a host of others. Private individuals and faith based organizations have also provided enabling skill acquisition centres to assist individuals acquire relevant and technical skills (Sani, Solesi, Niemogha, Alajika, Akinpelumi, Onyeka, Arinze, Goyol, Akinsipe, Dung, Awodele, Shogunle, 2014).
The Niger Delta Development Commission (NDDC) is a federal government agency established by Nigerian President Olusegun Obasanjo in the year 2000 with the sole mandate of developing the oil-rich Niger Delta region of Nigeria. In September 2008, President Umaru Yar’adua announced the formation of a Niger Delta Ministry, with the Niger Delta Development Commission (NDDC) to become a parastatal under the ministry. One of the core mandates of the commission is to train and educate the youths of the oil rich Niger Delta region to curb hostilities and militancy, while developing infrastructure to promote diversification and productivity.
NDDC was established as a result of various concerns in the Niger Delta region. The various states in the Niger Delta region include Edo, Rivers, Akwa Ibom, Bayelsa, Delta, Cross River States. Others from the South East are Abia and Imo State, from the South West, Ondo State. Some of the concerns of NDDC include poverty, unemployment, etc. In order to solve the problem in the region, the Niger Delta Development Commission (NDDC) established a skill acquisition training programme. The programme which began in 2002 was initiated through the Niger Delta Regional Master Plan (NDRDMP) in Section 5.7.3 and 5.7.4 following the success of the previous programmes. The NDRDMP was set to address policies for economic development in rural and urban areas of the region. The Niger Delta Development Commission Skill Acquisition Progrmame is established with the aim of enhancing Micro Small and Medium Scale Enterprises (MSME).
1.2 Statement of the Problem
There exist diverse economic, social and political problems at different magnitudes facing nations of the world and the Third World Countries are not excluded. These diverse economic, social and political problems have adversely affected the sustainable development of the countries, including high unemployment rate they are currently facing (Williams and Michael, 2012). Unemployment has become a global phenomenon of the 21st century; the problem is becoming more complex each passing year in Nigeria. Unemployment, underemployment and rural-urban migration have enveloped the Nigerian Labour market. This has been compounded by frightening number of graduates from polytechnics, Colleges of Education, Mono-Technics and Universities that leave school each year. This has increased the rate of social vices like robbery, kidnapping, prostitution, human trafficking, child abuse and unfair labour practices experienced in Nigeria by the unemployed youths (Mougbo and John, 2018).
National Manpower Board, (2009) opined that Nigerian Labour Market could barely absorb 10% of the over 3.8 million persons turned out by the Nigeria educational system every year. Due to the persistent problem of unemployment, successive Nigerian governments and also non-governmental organizations has put in place several policies, strategies and programmes and also established many agencies aimed at assisting citizens acquire employable skills to become economically stable. Among the non-governmental agencies involved in the empowerment of youths include, Shell Petroleum Development Company (SPDC), Total E&P Nigeria Ltd. (TEPNG), Nigeria Agip Oil Company(NAOC), and Nigeria Liquefied Gas (NLG). Among government agencies include the National Directorate of Employment (NDE), National Poverty Alleviation Programme (NAPEP) and Niger Delta Development Commission (NDDC) NDDC was established as a result of concerns in the Niger Delta region. The various states in the Niger Delta region include Abia, Akwa Ibom Bayelsa Cross River, Delta Ondo and Rivers States some of the concerns of NDDC include poverty, unemployment, etc. in order to solve the unemployment problem in the region, the Niger Delta Development Commission (NDDC) established a skill acquisition training program. The programme was initiated through the Niger Delta regional master plan (NDRDMP) in section 5.7.3 and 5.7.4 following the success of the previous programmes. The NDRDMP was set to address policies for economic development in rural and urban areas of the region. The Niger Delta Development Commission skill acquisition programe is established with the aim of enhancing Micro Small and Medium scale Enterprise (MSME) (www.currentschoolnews.com)
The skill acquisition programme which started in 2006 include:
Agricultural entrepreneurship training programme
Entrepreneurship and MSME
Fashion Designing
Computer training
Hair dressing
Home management (tie and dye)
Local welding and fabrication training
Maritime training
Micro credit
Food processing
Solar power equipment and maintenance technology
Catering and confectionary (www.currentschoolnews.com).
Although the programme has faced some challenges, it has since its inception in no doubt made a credible impact on the lives of the Niger Delta citizens. The highest trainee programme is the agricultural entrepreneurship skills training programme with over 2,985 beneficiaries in Akwa Ibom State. After each programme, beneficiaries are given starter packs in form of empowerment which ranges from acquiring a property or renting a place, purchasing of materials and equipment, running of course payment of salaries(1-2 months).
The problem in this study revolves around the high rate of unemployment in Nigeria. This study is necessary to fill the gap by examining how the NDDC skill acquisition has helped curb this issue of unemployment.
1.3 Objectives of the Study
The main objective of the study is intended to identify important points on skills acquisition and unemployment reduction in Nigeria focusing mainly on Akwa Ibom State using Niger Delta Development Commission (NDDC) as a case study. The subsidiary objectives are to:
examine the impact of NDDC Agricultural entrepreneurship skills training programme in unemployment reduction;
ascertain the extent to which the starter packs given to the beneficiaries can motivate people to establish their own business; and
find out the challenges of the NDDC skills acquisition programmes.
1.4 Research Questions
Does the NDDC Agricultural entrepreneurship skills training programme has an impact on unemployment reduction in Akwa Ibom State.
To what extent can the Starter pacts given to beneficiaries motivate them to establish their own Business
What has been the challenge of the NDDC skill acquisition programme since its inception
1.5 Research Hypotheses
(i) NDDC Agricultural entrepreneurship training skills programme has no significant impact in reducing unemployment in Akwa Ibom State.
(ii) The starter packs given to the beneficiaries cannot motivate people to establish their own businesses.
(iii) NDDC has not encountered any challenges in organizing skill acquisition since its inception.
1.6 Significance of the Study
The significance of this study hinges on the fact that it will contribute to the frontier of knowledge on how skill acquisition can be effectively used as a tool for unemployment reduction.
