As President Bola Tinubu strives to guide the Nigerian economy towards productivity in the next three years, focusing on a crucial element—productivity—is imperative.
Despite Nigeria’s reputation for hardworking and ambitious citizens, global competitiveness rankings raise alarms. International Labour Organization’s Labour Productivity statistics and the Global Competitiveness Index 4.0 2019 Rankings place Nigeria at 134th and 116th globally, respectively, indicating challenges in productivity.
Labour productivity, a pivotal economic indicator, directly influences growth, competitiveness, and living standards. It measures the efficiency of combining capital and labor for increased output. The 2019 Global Competitiveness Index projected Nigeria’s competitiveness index to improve, yet the 2023 ILO labor statistics reveal limited progress, with Nigeria now ranking 18th in Africa.
Productivity growth involves optimizing both capital and labor, considering changes in their sizes for a comprehensive measure. Productivity extends beyond numbers; it significantly impacts living standards. Lower productivity hampers economic growth, while higher productivity results in cost savings, lower prices, increased demand, more output, and improved competitiveness.
Efficiency gains lead to higher business profits, fostering long-term growth. A productive economy allows for higher wages, contributing to increased consumption and tax revenue for public goods.
Dr. Nelson Akpan, an economist, emphasizes that national productivity often stems from deliberate government policies. He highlights the importance of coordinating government, employers, workers, and NGOs in productivity promotion.
Dr. Samuel Olaleye agrees, emphasizing the pivotal role of governments in economic growth and productivity. Essential infrastructure and growth opportunities, including education, health, housing, power, transport, communications, research, and technology, must be provided. Investment in research and development is crucial for sustained growth, supporting the productivity increases of various industries.
Quality education is fundamental to a productive workforce. Olaleye stresses the need to improve educational standards and align the curriculum with the job market. Investing in STEM education fosters innovation, but he cautions against frequent strikes at the tertiary education level.
Vocational training programs tailored to industry needs can enhance practical skills. Collaboration between educational institutions and industries is essential to create a symbiotic relationship.
Embracing technology is crucial. Nigeria should incentivize businesses to adopt modern technologies, fostering innovation. Digital transformation can streamline processes, reduce costs, and enhance overall productivity, according to industrialist Moses Ibuza.
Ibuza emphasizes the importance of innovation as a key driver of productivity, suggesting tax incentives for businesses investing in research and development. He points out that President Bola Tinubu made promises in these areas and urges him to fulfill them for a conducive environment for business and productivity to thrive.
Special Advisor to President Bola Tinubu, Dr. Jumoke Oduwole, notes that Small and Medium-sized Enterprises (SMEs) form the backbone of the economy. Easy access to finance, coupled with supportive policies, can fuel their growth, creating jobs and contributing significantly to productivity.
Nigeria’s journey to improved productivity requires a holistic and coordinated effort. Addressing education, skills development, infrastructure, technology, and regulatory frameworks can unlock its full potential, positioning the country as a vibrant and competitive player in the global economy.
Continuous assessment and adaptation of strategies will be key to navigating the evolving landscape of productivity enhancement.
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