Abia, FCT, and Rivers Lead Nigeria’s Unemployment Crisis in 2023
Abia State, the Federal Capital Territory (FCT), and Rivers State have emerged as the regions with the highest unemployment rates in Nigeria for 2023, according to the latest Nigeria LabourForce Survey for Q1 2024, published by the National Bureau of Statistics (NBS). The report paints a troubling picture of unemployment across the country, with Abia topping the list at 18.7 percent, followed by the FCT at 14.1 percent, and Rivers State at 13.4 percent.
In Abia State, despite a substantial portion of the population being engaged in self-employment and informal sectors, the state recorded around 362,000 unemployed individuals. The report notes that Abia’s labour force includes over 1.25 million self-employed people and 1.51 million in informal employment, signalling a heavy reliance on these sectors as formal job opportunities remain scarce.
The FCT, home to Nigeria’s capital, also reported significant unemployment, with 150,000 people out of work in 2023. Despite 258,000 individuals in waged employment, the majority of the workforce—690,000 and 724,000 people respectively—are self-employed or engaged in informal activities, highlighting the dominance of non-formal sectors in the capital’s economy.
Rivers State, a key hub for Nigeria’s oil and gas industry, saw 408,000 unemployed residents, despite the prominence of the informal sector, where 2.24 million people are engaged in informal jobs. Meanwhile, the state’s formal employment sector accounts for 704,000 workers.
According to the NBS, “The proportion of persons in self-employment declined from 86 percent in Q1 2023 to 84 percent in Q1 2024. Survey findings reveal an increase in the share of employed persons primarily engaged as employees between Q1 2024 (16.0 percent) and Q3 2023 (12.7 percent).” This shift, while modest, indicates a gradual movement towards formal employment.
The report also highlights the persistent challenges faced by rural areas, which recorded an unemployment rate of 6.8 percent, compared to 3.5 percent in urban centres. The rural-urban divide underscores the economic difficulties in Nigeria’s rural communities, where access to formal jobs remains limited.
The gender gap in the labour market also remains stark, with female unemployment at 6.0 percent, compared to 4.7 percent for men. The data reveals that women, particularly in rural areas, continue to face greater barriers to employment.
With Nigeria’s working-age population reaching 116.6 million in 2023, accounting for 53.8 percent of the total population, the NBS report underscores the scale of the unemployment crisis. Of the working-age population, women make up a larger share at 52 percent, compared to 48 percent for men, further illustrating the need for targeted employment strategies to address both regional and gender disparities in the labourmarket.
As Nigeria grapples with the twin challenges of unemployment and underemployment, the focus remains on creating sustainable jobs and formalising informal employment to close the growing gaps in the workforce.
