"It Doesn't Make Sense": Former NBS Boss Faults New Employment Report

"It Doesn't Make Sense": Former NBS Boss Faults New Employment Report

  • Yemi Kale, the former CEO of the National Bureau of Statistics, has criticised the NBS in its new employment report
  • Kale revealed that the new data does not align with international standards
  • He said using an hour of work as a benchmark to determine employment was faulty

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The ex-statistician general of the Federation and former chief executive officer of the National Bureau of Statistics (NBS), Yemi Kale, has revealed that he opposed changing Nigeria's unemployment data-gathering methodology during his time at the bureau.

Kale spoke almost a week after the NBS issued new data, putting unemployment in Nigeria at 4.1%.

Yemi Kale, NBS, Unemployment data
Former NBS CEO Dr Yemi Kale faults new unemployment figure in Nigeria. Credit: NBS
Source: Getty Images

Up to 20 working hours provides livable wage in Nigeria

In Q4 of 2020, NBS said Nigeria's unemployment rate stood at 33% under Kale as its boss.

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According to Kale, the committee reviewing the minimum number of hours regarded as employed felt that it did not make sense because income earned at the timeframe was not sustainable.

Kale spoke on Arise TV's Global Business Morning Report on Monday, August 28, 2023.

The former NBS boss said that income generated from 20 hours of work in Nigeria would equal the one made from working one hour in the US.

Punch reports that the Chief Economist at KPMG said that the most important thing is to provide the government and policymakers with the tools necessary to understand problems, provide solutions, and monitor the impact of the issues.

He revealed that under him, they decided to adopt 20 hours because it agreed that in working that long, you might generate enough income that could equate to what working an hour in the US is.

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Working 20 hours in Nigeria equals one hour in US

The ex-NBS CEO said that unemployment figures from the NBS have always aligned with the international benchmark, explaining that one-hour work made sense in many countries that asked for the new standard.

Kale said the International Labour Organisation has developed a base guideline, and countries can adjust it to suit their needs.

Under him, NBS defined unemployment as anything above 40 houses and more because the Nigerian Policymakers promised Nigerians full-time employment and needed to understand if they were performing based on that.

NBS kicks against Kale's analysis

The head of the Communications and Public Relations Department at NBS, Wakili Ibrahim, said the new methodology aligned with international standards.

Wakili said some Nigerians earn from working for just one hour, and these Nigerians need to be brought into the data.

Wakili argued that neighbouring countries in Africa use a new methodology of one hour.

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“The insult must stop immediately” Nigerians doubt NBS' 41% unemployment rate

The NBS spokesman said Kale was the worst CEO NBS ever had and the youngest Statistician-General in Nigeria.

He said under Kale, everything was crippled, and not even electricity worked in the office, stating that funds provided under Kale disappeared.

He alleged that Kale refused to leave after 10 years as head of the statistics body until they forced him out.

Kale's comments come after similar statements by prominent Nigerians who faulted the new employment data, stating that the NBS was playing to the gallery.

Nigerians react to NBS report

The former chairman of Stanbic IBTC Bank, Peterside Atedo, said Nigeria had lower unemployment data because NBS changed its methodology.

He said:

"According to @StatiSense, South Africa's unemployment rate is 32.6%. We (Nigeria) have brought ours down to 4.1%. The only catch is that we brought unemployment crashing down because @NBS_Nigeria changed the methodology/definition of unemployment. I don't know whether to laugh or cry."

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"Working age now 15years, more women-owned businesses": NBS Reveals why unemployment dropped

Other experts called the new report a joke as it does not reflect the current realities in the country.

“It’s a Joke”: Experts speak as Nigeria’s unemployment rate becomes 3rd best globally, beats France, UK

Legit.ng reported that the National Bureau of Statistics recently revealed that Nigeria’s unemployment rate has dropped to 4.1% at the end of the first quarter of 2023.

The bureau stated this in its Labour Force Survey (NLFS), prepared in collaboration with the World Bank and the International Labour Organisation (ILO).

The latest figure indicates that Nigeria has suddenly transitioned from having the worst unemployment rate to outperforming countries like the United Kingdom and France.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng