Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has said that about 81 per cent of employed Nigerians are engaged in the non-productive sector of the country’s economy.

Oyedele disclosed this while speaking at an Africa Trade and Investment Summit on Thursday. He said while the unemployment rate in Nigeria is relatively low at 4.2%, most employed Nigerians do not add any meaningful value to the economy.

He said that is the reason why the majority of Nigerians are living in poverty.

Oyedele said the federal government needs to create decent jobs that lift many Nigerians out of poverty.

“About 81% of people in employment in Nigeria are engaged in a non-productive sector of the economy. They are doing things that do not add value in the real sense of the word.

“That is the reason why our unemployment rate, even though it is just 4.2%, similar to that of the UK, our poverty rate is still one of the highest in the world. We have over 113 million people living in poverty as of 2022, and it is most likely to have increased because that was before subsidy removal and naira flotation.

“So how do you have a high employment rate and one of the highest poverty rates? That is the only explanation. We are working poorly. We need to create decent jobs. Our job is just beginning,” he said.

Nigeria’s unemployment rate increased by 0.1 per cent to 4.2 per cent in the second quarter from 4.1 per cent in Q1 2023.

While Nigeria cannot control the global economic climate, a change in policy direction can help manage the economic situation of the country, Oyedele said.

“While we cannot control what Russia and Ukraine are doing. We cannot control what happens in Gaza. Just making it easy for small businesses to earn a meaningful living, it is easier for manufacturers to produce.”