UNEMPLOYMENT AND HOUSEHOLD HARDSHIP AMONG IBADAN RESIDENTS; EVIDENCE FROM PRESIDENT TINUBU ADMINISTRATION

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Economic growth, characterised by a sustained increase in a nation's income or output, primarily involves the expansion of an economy's production and distribution of goods and services. This growth is crucial for a country's ability to effectively compete in the global market. An issue of great significance in developing countries is the problem of unemployment. An economy's diminished level of output and income is manifested by a rise in the unemployment rate. This further exemplifies the impoverished living conditions and financial difficulties experienced by the general population in the economy (Impin & Kok, 2021).

The news of economic misery in Nigeria has reached a level where it is now a global concern, and it is no longer an exaggeration to say so. In his article, Habib (2024) states that the president of the Nigeria Labour Congress (NLC) expressed concern about the increasing economic difficulties in the country, stating that Nigerians had resorted to scavenging as a result. There have been multiple instances of attacks and thefts targeting warehouses and food trucks in various towns of Nigeria. These crimes have been attributed to the prevailing hardships and high cost of living (Habib, 2024). Isenyo (2024) also states that enraged young individuals and women demonstrated on the streets of Minner, the capital of Niger State, as well as in Kano, to express their dissatisfaction with the increasing cost of living in the country. The author further asserts that the Christian Association of Nigeria in the nineteen northern states and Abuja has also said that the distress in Nigeria is reaching a point where it is intolerable for ordinary Nigerians (Isenyo, 2024). Adeleye (2024) asserts that, in contrast to the ruling government's belief that the protests were driven by political motives, the reality is that the country is plagued by severe hunger and the resulting misery has reached an intolerable level.

Over the past year, Nigerians have experienced increased hardship as President Bola Ahmed Tinubu's eight-point programme proved ineffective in addressing the growing issues of inflation, unemployment, and a dropping Gross Domestic Product (GDP) (Akoko, 2024).  There is an increasing demand for President Tinubu to reconsider some of his policies in order to alleviate the escalating expense of living in the country. There is a perspective that argues that Tinubu's reform policies have exacerbated the difficulties faced by the general population and should be abandoned. President Tinubu's administration style and economic policies have come under scrutiny due to the escalating cost of living (Akoko, 2024). The President has faced significant public backlash, including from his own supporters, due to the prevailing exorbitant cost of life in the nation. Nationwide, the immense excitement that accompanied his inauguration in May 2023 appears to have been replaced by feelings of hopelessness and fury (Kuti, 2024).

A significant number of Nigerians are questioning if the President possesses a thorough comprehension of the magnitude of the tasks that need to be addressed. Meanwhile, others are experiencing a state of agitation and bewilderment regarding the trajectory of the country, as the costs of products and services continue to escalate on a daily basis, surpassing their affordability. Given the unprecedented inflation rate of 34% and the depreciating value of the naira, a significant number of individuals hold a negative outlook on the future. Paradoxically, there has been no increase in earnings either (Akoko, 2024). The price of petrol has increased by over threefold in the past year, while the cost of rice has more than doubled. These two data illustrate the challenges that a significant number of Nigerians are encountering. Tinubu, in his electoral campaign, expressed his commitment to making challenging choices and emphasised that governing the nation will not follow the regular routine. From the very beginning, he made efforts to keep his pledges, starting with his impactful declaration in the Eagle Square that subsidies would be eliminated, on the day he took office. The announcement echoed throughout the nation and extended to other regions (Thisday, 2024).

Tinubu took charge of an economy that was already dealing with significant debt, high unemployment rates, reduced oil production, government funds being depleted by subsidies, and growth being impeded by power shortages (Abu et al., 2023). President Tinubu's term over the previous year has been marked by substantial issues in the Nigerian economy. The reforms enacted by Nigerian President Bola Tinubu, although brave and praiseworthy, have led to an economic downturn marked by a rise in poverty, hunger, and unemployment (Nyong et al., 2024). Tinubu, who campaigned under the banner of "Renewed Hope," implemented measures such as the removal of a costly petrol subsidy and foreign currency controls. These actions were aimed at bolstering government finances, rebuilding investor confidence, and fostering economic expansion (Eno et al., 2023). Nevertheless, the unemployment rate has skyrocketed to its highest point in three decades, resulting in widespread financial difficulties for many households. Food, cooking gas, pharmaceuticals, petrol and public transit expenses have experienced a substantial increase, hence exerting financial strain on household budgets. According to the IMF (2024), around 8 percent of Nigerians are considered to be food insecure. Therefore, it is essential to give high importance to addressing the problem of rising food insecurity.

Unemployment is considered a highly detrimental state that any country may suffer due to its complex and far-reaching consequences (Akpabio, 2022). Unemployment leads to social issues such as depression, low self-esteem, and activities like prostitution and theft. Economically, unemployment results in the loss of tax revenue, wasted productive time, and the emigration of skilled workers. Ouardighi and Munier (2019) argue that unemployment has a lasting negative impact on an individual's well-being, leading to feelings of depression, detachment from one's own life, and a sense of illness and unhappiness (Elijah et al., 2023). This phenomenon significantly influences an individual's or a community's level of satisfaction and fundamentally alters the viewpoint on financial well-being (Ade, 2023).

The average unemployment rates in Nigeria from 1996 to the present have always been high, with rates ranging from 3.90% in 1996 to 5.76% in 2022. This indicates the necessity of reducing the elevated unemployment rate in Nigeria in order to attain economic growth (World Bank, 2022). Unemployment and household hardship are pressing concerns that have a significant impact on urban populations in Nigeria. Since May 2023, during President Bola Ahmed Tinubu's administration, these problems have gained significant prominence. This study aims to examine the experiences of inhabitants in Ibadan, a prominent city in Oyo State, in order to ascertain the magnitude and consequences of unemployment and household adversity during this time.

1.2 Statement of the Problem

President Tinubu took charge in a complex economic situation characterised by inflation, high unemployment rates, and a declining GDP. Several fiscal and monetary measures have been enacted to address these challenges. However, the recession has persisted, exacerbating the financial difficulties faced by numerous individuals.

Empirical research substantiates that unemployment and household poverty have been significant factors contributing to the phenomenon of brain drain in Nigeria. Brain drain refers to the migration of highly educated and competent workers from economically disadvantaged countries to more prosperous ones (Udeh & Mbah, 2017). Skilled people resources migrating for trade, education, and other purposes is referred to as human resource migration (Akpata et al., 2020). Akpata et al. (2020) state that skilled and trained individuals who are professionals can be found worldwide. However, developed countries with better living standards, higher salaries, access to advanced technology, and more stable political conditions tend to attract talented individuals from less developed regions. The empirical data suggest that brain drain has a negative impact on economic growth in Nigeria. The reason for this is that brain drain leads to a reduction in the labour force in Nigeria. The phenomenon of brain drain in Nigeria results in the depletion of the skills, talents, knowledge, and expertise possessed by the country's human capital. Consequently, the departure of professionals from Nigeria has a negative impact on all sectors of the country, leading to a decline in the quality of education and healthcare (Tobi et al., 2022). This leads to a decline in the value of stocks held by professionals in the country. This has hindered economic progress as it results in the emigration of skilled workers, thereby causing the government to forfeit their investment in human capital. Over the years, this has diminished Nigeria's economic output and resulted in a decrease in resources generated from human capital (taxes). Likewise, numerous scientists, engineers, academics, surgeons, and other professionals who have received education in their home countries, at a significant expense to society, sometimes only profit from and contribute to the economic advancement of already prosperous nations (Udeh & Mbah, 2017).

Olayinka (2024) argues that the economic measures implemented during the Tinubu administration, although intended to promote economic recovery, have not effectively mitigated the persistently high levels of unemployment and the resulting sufferings faced by households in Ibadan. The combination of escalating living expenses, diminished earning prospects, and inadequate social welfare systems has exacerbated these difficulties, resulting in heightened financial burden on households (Joshua et al., 2024). This study aims to assess the levels of unemployment and household suffering among inhabitants of Ibadan during President Tinubu's administration.

Objectives of the study

The primary objective of this study is to critically assess unemployment and household hardship among Ibadan residents; evidence from President Tinubu administration. Specific objectives of this study are to:

To assess the extent of economic hardship experienced by households in Ibadan.

To examine the causes of unemployment among Ibadan residents under the Tinubu administration.

To determine the impact of unemployment on the standard of living of Ibadan residents under the Tinubu administration.

To explore the strategies employed by households to cope with unemployment and economic hardship

1.4 Research Questions

The following research questions will be answered in this study:

What is the extent of economic hardship experienced by households in Ibadan?

What are the causes of unemployment among Ibadan residents under the Tinubu administration?

What is the impact of unemployment on the standard of living of Ibadan residents under the Tinubu administration?

What are the strategies employed by households to cope with unemployment and economic hardship?

1.5 Research Hypotheses

The following research hypotheses will validate this study;

Ho: The extent of economic hardship experienced by households in Ibadan is low.

Ha: The extent of economic hardship experienced by households in Ibadan is high.

1.6 Significance of the study

The importance of this study rests in its specific focus on inhabitants of Ibadan under the Tinubu Administration, emphasising the connection between unemployment and the difficulties faced by households. The study seeks to enhance informed decision-making and enhance socio-economic outcomes for urban residents in Nigeria by offering empirical insights and policy recommendations. The study will provide a fundamental reference point for policymakers, the urban population, students, and scholars. 

Moreover, upcoming scholars will utilise it as a thorough examination of the current body of written works. Consequently, other students with an interest in studying this subject will have the opportunity to utilise this work as dependable material that can be comprehensively evaluated.

1.7 Scope of the study

Broadly, this study focus is to critically assess unemployment and household hardship among Nigerians; evidence from President Tinubu administration. Specifically, this study seeks to assess the extent of economic hardship experienced by households in Nigeria and examine the causes of unemployment among Nigerians under the Tinubu administration. Further, this study will focus determining the impact of unemployment on the standard of living of Nigerians under the Tinubu administration and it also seeks to explore the strategies employed by households to cope with unemployment and economic hardship.

The study is carried out in Ibadan, Oyo state.

1.8 Limitations of the study

As is common in all human endeavours, the researchers faced minor limitations when conducting the study. The main limitation was the lack of extensive literature on the subject, as there is limited data available for unemployment and household hardship among Ibadan residents; evidence from President Tinubu administration. Consequently, a significant amount of time and effort was necessary to locate the appropriate materials, books, or information and to gather data. 

Additionally, this study is constrained by its small sample size and narrow geographical scope, focusing just on Ibadan, Oyo state. Consequently, the results of this study are not applicable for generalization, thereby leaving room for further research. 

Additionally, the researcher's limitations were primarily due to financial constraints, as they are a student and do not have a source of income to sustain themselves. It was challenging to afford transportation expenses to and from the study location due to the high cost of transportation, which is influenced by inflation in Nigeria today.

Furthermore, the researcher faced a time constraint due to the need to do this research while also fulfilling the obligations of attending lectures and other educational activities.

1.9 Definition of terms

Economic recession: Economic recession as: "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales

Inflation: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

Economic hardship:  economic hardship refers to difficulty caused by having too little money or too few resources.