Present evidence of 1.6 million jobs created, Nigeria’s unemployed youth tell Okonjo-Iweala

Ngozi Okonjo-Iweala

Unemployed youth say what is evidential is a spate of unemployment.

A body of unemployed graduates & other youth in Nigeria has requested for information on the alleged 1.6 million jobs created in 2013.

The Adebisi Thomas Adewole Foundation, ATA Foundation, an avenue through which unemployed graduates and other unemployed youth of Nigeria demand for their rights, aired their grievances and desires in a letter to Ngozi Okonjo-Iweala, the minister of finance and coordinating minister of the economy.

Citing the Freedom of Information , FOI, law, they requested for evidence on the existence of these created jobs.

“In 2013 as reported by the Nigerian Tribune on 17th of September, 2013, the World Bank put the unemployment rate in Nigeria at 22 per cent and the youth unemployment rate at 38 per cent. The Team Leader and representative of World Bank Country representative, Professor Foluso Okunmadewa, made this disclosure at the Youth Employment and Social Support Operation (YESSO) organised by Subsidy Reinvestment Programme (SURE-P), in Abuja,” the foundation said, in the letter signed by Adebisi Adewole, the Chairman of the foundation.

Citing update on the state of unemployment in the country as drawn from the National Planning Commission presentation and the divergence in the ‘official’ reports on jobs created, the foundation said that unemployment rate in Nigeria worsened under the administration of President Goodluck Jonathan.

“This conclusion was drawn after the National Planning Commission presented the 2011 Performance Monitoring Report on Government’s Ministries, Departments and Agencies in Abuja on 3rd of October, 2013. The report indicated that the unemployment rate in Nigeria in 2010 was 21.1 per cent, a figure that increased to 23.9 per cent in 2011,” the group said.

ATA Foundation said that the News Agency of Nigeria, NAN, quoted the report as stating that, “In 2011, Nigeria’s unemployment rose to 23.9 per cent compared with 21.1 per cent in 2010,” and that the report referenced its facts from the National Bureau of Statistics, NBS.

“ThisDay on AllAfica.com and the Nigerian Vanguard Newspaper both related on December 18, 2013 that the National Bureau of Statistics said that 54 per cent of Nigerian Youths were unemployed in 2012. This was contained in a report issued in Abuja by NBS in collaboration with Federal Ministry of Youths Development in December of 2013”, it added.

Many other reports by national, regional, and global bodies have also corroborated the rising unemployment rate in the country despite the initiation of SURE-P, YOUWIN, and other such programmes to create employment for millions of Nigerians particularly the youth by the Federal Government.

“During an interactive session with Private sector in December, 2013, The Punch Newspapers related on December 30, 2013 that during your presentation, you disclosed that a total of 1.6 million jobs were created in 2013. ThisDay on AllAfrica.com on January 20, 2014 also gave an account of your reiterating same at the South-East and South-South Professional Forum in January, 2014. At the forum you also said 2 million of such jobs will be created in 2014,” the foundation told Mrs. Okonjo-Iweala.

The ATA Foundation said in accordance with Section 2, 3, 4, of the FOI Act, it wants to know “The number of jobs created in each sector of the economy in 2013, the amount appropriated and expended to create such jobs and the sustainability plan of the jobs after the federal Government has withdrawn its support as the case may be” the foundation said, while also demanding supporting documents.

“We look forward to receiving the required information promptly and, in any event, within 7 days of the receipt of this application as provided for in the Freedom of Information Act, 2011,” the foundation said in its letter.


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  • WilliamsIrehovbude

    “Created” not “given”. When the atmosphere is created it is left for you to take same. Remember gov can not give everyone of us jobs.

    • Amos

      So in your understanding of English language the “atmosphere” of job creation is the same thing as the “jobs” that were supposedly created? Is this the usual deceptive world Bank language? Na wa o. No wonder Madam Okonjo-Iweala and her supporters do not stop reminding us that she worked in the WORRRRRLD BAAAAAANK IN NEEEEEWWWW YOOOORK!!! If this is what economics is and if this is what job creation is, please after Mrs. Okonjo -Iweala finishes her term as COORDINATING MINISTER, I am begging whoever is the next president NEVER to appoint any of these diaspora people and world bank people as minister for finance. I will go as far as saying that we should not appoint these so-called diaspora people as ministers. They just come here, collect their salaries and continue to remind us how they are DIIIIIAAAASSSSPORA!!! Na wa for you WilliamsIrehovbude check your dictionary for the meanings of ATMOSPHERE and JOB. They are different my broda. But dis na Naija where black is white and white is black!

      • WilliamsIrehovbude

        Its left for u to read whatever meaning to my post. Till then let’s are the out come of the Ministers response.

      • Ahmmed Wazobia

        Amos, you might be mixing things up here, the issue of diaspora has no bearing on incompetent or fraudulent management of the economy. NOI is a turncoat who has shed all moral inclinations to dine with the devil trampling intellectual obligations alongside; diaspora is a non-factor.

        Sanusi Lamido, with his faults, is the relative alternative to the blind knavery presently going on in the system, he could claim diaspora status as well, but we have record of his contrary stance on these issues. The problem is that of marauding individuals, not because of home or diaspora status.

        That said, William above, is the perfect example of why the corrupt technocrat thinks she can passively erode our collective intelligence as Nigerian youths with all the baseless data spurned around, it’s good to know that the youths are waking up to exploiting the right channels to effectively force the knaves to accountability; painstakingly but steadily.

        Let her produce the job figures, let truly independent authorities audit the ongoing remittance discrepancies between the NNPC and the Nigerian people, let’s amplify our voices!

        Ahmmed Wazobia.

    • Olawale Badmus Bright

      You can afford to use your mouth to run dysentery. Simply because you are employed does not make everybody is. Where waiting for the figure.

      • WilliamsIrehovbude

        Wait for gov to come and put food in your mouth. Personally I know of a fact that persons have gotten job from the FG. Am not their spokes person so they should respond. But one thing is clear take it or leave it: gov can not provide all the jobs.

  • solution

    I have not seen any job created by the federal government other than giving free money to militants in the name of pipeline protection and expanding the scope of corruption in Nigeria.We are waiting for the figures.

    • okwu

      wait, they are coming to show you

    • NaijaMindOfChange

      You are very correct man.

  • kingston

    Unemployment is on the increase in nigeria, and politicians are preparing to tell us lies about 2015….

    • NaijaMindOfChange

      Increasing so fast

  • Comfortkay

    I wonder why a respected Banker in person of Dr Ngozi will bring herself so low and join the ranks of liars about job creation.
    There is no atmosphere of good security in Nigeria whereby investors can come and people can gainfully employed.
    65% of our graduate have no jobs and that is just too much.

    • NaijaMindOfChange

      She have messed her self up, a success who have joined failure. Sorry for her

    • Ide4u

      She is not a banker but a fake economist.

      • Hilary Rose

        She worked for the World Bank, an organization which would never be run by “fake economists.”

  • NaijaMindOfChange

    This PDP government are bunch of liars and corrupt men, where is the jobs they created, easy to say and hard to show.

    • Hilary Rose

      The recent measures by the government, especially the PDP, have worked to stabilize and grow the economy, create jobs, and improve standards of living. For example, just look at the SURE-P program that has created 130,000 jobs and is set to empower thousands of youth.

  • TKBaba

    SURE-P jobs for the boyz

  • The facts are sacrosanct.CNN in one of its recent broadcasts, posits that 100 million Nigerians live below the poverty line. The National Bureau of Statistics said over 54% of youths in Nigeria are jobless, while the World Bank puts the figure at 56%. According to Dr Okonjo Iweala, the misery index increased in 2013.The consequences of this is that the Youths and Poor are becoming more susceptible
    to crimes .
    According to Wole Olanipekun (SAN), former Unibadan Chancellor……“Go to the Streets,……you see anger and frustration …..suffering, poverty, anguish and malady written boldly on the faces of several Nigerians”

    We cannot be serious about poverty reduction without confronting the menacing scourge of joblessness ravaging mostly the youths. The
    enormity of unemployment challenge which has become colossal, can be
    illustrated most vividly when out of the 13,000 applications received by the Dangote Group for Graduate Executive Truck Drivers, there were six Ph.D, 704
    Masters and over 8,460 Bachelor degree holders.

  • okwu

    Is $20BN Oil money really or its something else the matter?

    The
    exchange between the Governor of Central Bank of Nigeria (CBN), Mr Sanusi
    Lamido Sanusi, and the Nigerian National Petroleum Corporation (NNPC) over oil
    funds has generated interest in the polity. This is hardly surprising since the
    bulk of the money that sustains the nation comes from oil.

    Sanusi
    triggered the exchange when he wrote President Goodluck Jonathan to allege that
    the NNPC failed to remit some $49.8 billion into the Federation Account. The
    NNPC took him up, saying he got his facts wrong. A subsequent reconciliation
    meeting involving the Federal Ministry of Finance scaled down the money to
    $12billion and then $10.8 billion part of which was said to have been spent to
    service kerosene and petrol subsidy.

    The
    impression thus created was that the issue would be ultimately resolved. But
    the CBN Governor raised fresh dust at a public hearing conducted by the Senate
    Committee on Finance when he insisted that out of $67 billion crude lifted;
    only $47 billion has been remitted, leaving a balance of $20 billion. Sanusi
    did not stop there. He alleged that the money illegally and unconstitutionally
    withheld, diverted or spent by the NNPC is in excess of $10.8 billion.

    The CBN
    Governor went further to say that whereas the NNPC stated that a major component
    of the $10.8 billion was spent on kerosene and petrol subsidy, he had evidence
    of a presidential directive stopping kerosene subsidy and therefore declared
    that the subsidy (on kerosene) was illegal and that whatever had been spent
    should be refunded to the Federation Account.

    He raised
    concerns on the Offshore Processing and Crude Oil/Products Exchange (OPA),
    otherwise known as swap transactions, initiated by the NNPC to make refined
    products available in the country in the wake of the epileptic performance of
    the refineries. On the divested assets of the Nigerian Petroleum Development
    Company (NPDC), Sanusi claimed $6billion was diverted to two private companies.
    The allegations, coming from a top official of government as the apex bank
    governor, are bound to ruffle feathers in a country where the people don’t
    trust the leaders with public funds.

    KEROSENE
    SUBSIDY

    Meanwhile,
    Sunday Vanguard findings showed that Sanusi did not appear to get his facts
    right especially on the issue of kerosene subsidy which he claimed the NNPC
    continued to service whereas the late
    President Umaru Yar’Adua removed it as far back as 2009. Actually, Yar’Adua did
    issue a directive that sought to remove kerosene subsidy “taking into account that
    subsidy payments by government on kerosene do not reach the intended
    beneficiaries.”

    It was
    understood that whereas the directive was not communicated directly to the NNPC
    but to the Minister of Petroleum Resources, Dr Rilwan Lukman, the
    implementation immediately ran into a hitch. The then president added in the
    directive that public announcement of the kerosene subsidy removal “should be
    avoided.”

    The clause
    in the directive that public announcement should be avoided, it was learnt,
    meant it could not be gazetted. In the meantime, the only authority empowered
    by Section 6 of the Petroleum Act to approve petroleum products prices is the
    Minister of Petroleum Resources doing so through a gazette.

    Sources
    said Lukman could communicate the kerosene subsidy removal directive to the
    NNPC following this challenge while the national oil company continued to
    import the product at N150 per litre and selling at N50 to the end user,
    implying N110 subsidy.

    Consequently,
    it was learnt that President Yar’Adua set up an inter-ministerial committee
    (Presidential Implementation Committee on Downstream Deregulation), comprising
    of the Minister of Finance (Chairman),
    Minister of Petroleum Resources, Minister of State, Petroleum Resources, Chief Economic Adviser to the
    President and GMD, NNPC, to develop strategies on implementing the deregulation
    of the downstream sector.

    The outcome
    and subsequent directive to the NNPC, it was learnt, was that it should delay
    kerosene deregulation and ensure the supply of the product to the market due to
    the withdrawal by other marketers and also a strategic action to win the public
    over in implementing the ultimate objective of deregulating the downstream
    sector as a whole. There were also two intervening factors, according to Sunday
    Vanguard sources.

    The first
    was the House of Representatives resolution of July 2011 which backed the
    continuation of subsiding kerosene while the second came via a court judgment
    of March 19, 2013 in the suit filed by Mr Bamidele Aturu against the Minister
    of Petroleum Resources.

    Delivering
    the judgment, Justice Bello of the Federal High Court, Abuja granted an order
    restraining the authorities from deregulating the downstream sector including
    removing kerosene subsidy. The judgement, it was gathered, remains in force. On
    the volume of kerosene supply to the system by the NNPC, sources put it at an
    average of five vessels per month as against four-six given by the CBN Governor
    to fault the national oil company’s subsidy claims.

    One of the
    sources said, “The fact of the matter is that there was a presidential
    directive stopping kerosene subsidy, but the language of the directive did not
    make it implementable. Therefore the fiction peddled by the CBN Governor is
    that the directive was implemented.

    Arising
    from this and the others interventions from the House and the Abuja High Court
    against the kerosene subsidy is the fallacy, also peddled by Lamido Sanusi,
    that a component of the $10.8 billion was not spent on kerosene subsidy.”

    OPA/SWAP
    ARRANGEMENT

    The CBN
    Governor raised concerns over the Offshore Processing Arrangement (OPA)
    initiative of the NNPC. Sunday Vanguard was made to understand that the
    arrangement stemmed from the inadequacy of the Open Account Import system
    previously adopted by the national oil company to bring petroleum products into
    the country. A source narrated the events that led to OPA.

    He said:
    “Our operations of the domestic refineries have been very epileptic due to
    un-planned equipment failures as well as consistent acts of vandalism on the
    crude oil supply pipeline to the refineries.

    “Even when
    the refineries are fully operational, they cannot meet up with the petroleum
    products requirements of the domestic market, especially PMS, whose domestic
    daily requirement is now put at 40 million litres. The domestic refineries at
    full capacity can only produce about 19 million litres of PMS while the balance
    21 million litres is sourced through import.

    “Therefore,
    in order to guard against products shortages and guarantee steady availability
    of petroleum products for domestic consumption all year round, NNPC engages in
    the importation of petroleum products to augment local Refineries production.

    “The
    importation of petroleum products by NNPC, which started in the 90s, was
    carried out under the Open Account System, through open tender process from
    reputable oil trading companies with proven track record of performance and
    strong capital base.

    “However,
    along the line, NNPC started witnessing default in deliveries where most of the
    supply companies failed to perform, especially around the winter period. The
    trading companies’ perennially gave the reasons of high cost of products and
    high cost of vessels freight, for their non-performance hence the demand for
    increased premium. Rather than deliver cargoes based on their allocations from
    NNPC, they would insist on spot cargo offers.

    This
    resulted in severe scarcity of petroleum products witnessed especially around
    2009 and 2010 with the attendant negative consequences to Nigerians and the
    economy.

    “The open
    account import exposed NNPC to certain variable market conditions, especially
    the demand for high premium by the suppliers.

    This demand
    in most cases was predicated on NNPC’s inability to fulfil its payment
    obligations as at when due. The delay in making payments for the cargoes
    delivered deteriorated to over 1,000 days in default. The debt owed by NNPC at
    the same point in time was about $3.2b.

    “In view of
    the long delay in making payments, and the huge outstanding debt, most
    International financial institutions became reluctant to cover NNPC imports.
    Even where the banks were willing to finance NNPC imports, the finance risk
    cover became very expensive there by making deliveries by trading companies
    almost impossible.

    “Therefore,
    the cost of finance risk cover on NNPC imports in addition to the high interest
    on delayed payment for cargoes delivered by the suppliers increased the
    exposure of NNPC as additional costs that are not covered under the subsidy
    template.

    “The Open
    Account Import provided for NNPC to pay interest to suppliers in default of
    payment after 45 days of cargo arrival as a contractual provision, regardless
    of any operational exigency that may arise or prevent payment. Sustainability
    of products supplies almost became impossible occasioned with periodic
    interruption in supplies with the attendant scarcity around the country due to
    the vagaries of the open account regime.

    “In order
    to mitigate the open account import challenges of price vulnerability, supply
    disruptions and also guarantee steady supply of petroleum products to the
    market, NNPC explored the option of offshore processing of the refineries’
    unutilized crude oil, as well as the exchange of same crude oil for petroleum
    products.

    “It was on
    this ground that NNPC sought and obtained the approval of the late President
    Yar’Adua to enter into this arrangement pending when the refineries would be
    turned around for optimal performance.”

    According
    to the source, the offshore processing and crude oil/products exchange provided
    NNPC the opportunity and flexibility to control the supply and availability of
    petroleum products into the market.

    “This
    arrangement also liberated NNPC from the necessity of making monetary payments
    to the suppliers as required in the Open Account Import regime and interest on
    delayed payments. The economics also provided more volume of products delivered
    in comparison with the Open Account regime”, he added.

    “Under OPA,
    NNPC delivers crude oil to a refinery for processing at a contractually agreed
    yield pattern and processing fee. In return, NNPC evacuates the refined
    products that are needed most. The OPA provides NNPC the opportunity and
    flexibility to exchange products grades based on domestic need and immediate
    requirements. As a result, NNPC can request the refinery to make available for
    evacuation more of PMS and kerosene that are required most in exchange for
    Automotive Gas Oil (AGO) out of the products yield.

    “Furthermore,
    all other products such as propane, butane, vacuum gas oil and fuel oil that
    are not necessarily needed for consumption in Nigeria are sold by the refinery
    on behalf of NNPC at the prevailing market price and proceeds remitted to NNPC.

    “The
    process allows NNPC to request for pre-delivery of petroleum products in the
    event of tight supply situation in the market or due to the inability to lift
    crude oil as result of operational constraints at the crude oil terminals or in
    the event of Force Majeure declaration. Such pre-deliveries helps NNPC bridge
    the gap in supply situation and forestall products scarcity in the country. In
    return, an equivalent value of crude oil will be allocated at a later date for
    the products per-delivered.”

    Sunday
    Vanguard learnt that OPA enjoys presidential approval and, while the operation
    is governed by contractual agreement, it was recently subjected to scrutiny by
    the House of Representatives Committee on Downstream with a verdict of clean
    bill of health returned.

    Indeed,
    sources said the swap transactions regime saved the county huge sums of money,
    when compared to the Open Account regime, as OPA stabilised the average premium
    paid on petrol at $81.28 per metric ton, from 2011 when it was initiated up
    till last year. Under the old regime (Open Account), while $70.02 was the
    average premium paid for the petrol imported into the county in 2007, the
    figure went up to $85.14 in 2008, $87.50 in 2009 and $116.50 in 2010.

    And whereas
    the total cost of premium in 2010 under the Open Account regime, at $116.50
    (almost five billion metric tons was imported) was over $582 billion, the total
    cost of premium between 2011 and 2013 (under OPA), at $81.28 (about 5.5 billion
    metric tons was imported annually), was about $441billion annually. The
    difference is about $141 billion saved for the county annually.

    The source
    said: “Contrary to the concerns raised by the CBN Governor, OPA/swap has
    availed the NNPC the opportunity to sustain the market, guarantee the security
    of supplies and keep the entire country wet with petroleum products even when
    other marketers were reluctant to perform due to non-payment and/or delayed
    payment of subsidy by government.

    “The
    process also reduces the cost of NNPC’s importation by way of reduction and
    stabilising the premium paid under the Open Account regime. Also the situation
    whereby traders will gang up and decide on the premium to be paid by the NNPC
    for the deliveries has been eliminated.”

    The
    Vanguard

  • Tony

    All I know is that 1.6 million is a huge number, whichever way you may want to look at it. Therefore, if 1.6 million jobs were truly created, Nigerians would have felt it (even if in a little way). Well, unless all the 1.6 million jobs were only available in just 1 or 2 states in the Federation.

    • Hilary Rose

      1.6 million is definitely a step in the right direction and Ngozi is helping to make Nigeria a more prosperous and successful country.

  • PERO

    You see why we must stand up and fight, if Millitants can be paid so much and even sent abroad, graduates who have sacrificed everything with their parents are to place their hope on luck for ebele and iwealas sure-p programme. it is clear that if we don’t pick up arms you people will kill us with this stealings and tricks. well i don’t blame you guys in government, cos it appears nija youths are weak.

  • PERO

    presently there is no hope for graduates between the age of 36 and 45, may we pls. know our sin against our father land and the government?

  • PERO

    As a graduate from a monotechnic(petroleum training institute effurun delta state) i have passed through 3months and 1yr. industrial attachment, and 1yr. nysc. is it not an insult to our institutions in this country to say that i am unemployable. well what do you expect from a president whose political party says that a general in the nigerian army dose not have a school cert. my president “go and re-strategise”.you are missing it all.