The Nexus Between Entrepreneurship, Job Creation, and Economic Challenges in Nigeria

Feranmi Olaseinde

Feranmi Olaseinde

Sep 04, 20234 min read

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The Nexus Between Entrepreneurship, Job Creation, and Economic Challenges in Nigeria

Introduction:

In a significant development, the President of the World Bank, David Malpass, is scheduled to visit an entrepreneur in Nigeria who has successfully created over 1500 jobs. The visit aims to focus on various aspects such as job creation for young people and women, addressing energy needs, exploring renewable energy, and potential digitization opportunities. This article delves into the connection between entrepreneurship, job creation, and the economic challenges faced by Nigerians, particularly those residing in the UK.

The Plight of Nigerians in the UK:

Nigerians living in the United Kingdom often face financial challenges due to various factors. The country's economic situation, compounded by the growing population, Brexit, and the ongoing COVID-19 pandemic, has made life increasingly challenging. Financial burdens such as taxes, rent, council tax, loan repayment, and vehicle insurance take a significant toll on individuals' income, making it difficult for them to meet their basic needs.

Taxation Woes:

One major reason for the financial struggles faced by Nigerians in the UK is the heavy taxation system. The UK imposes high taxes on its residents, which significantly reduces their take-home pay. Even with a gross salary of £3,000 per month, individuals may end up with a net pay of only £2,300 after deductions. This means that income tax, National Insurance, and pension contributions can consume a substantial portion of their earnings, leaving them with limited disposable income.

Rising Living Costs:

Apart from taxation, the cost of living in the UK further exacerbates the financial woes of Nigerians. Rent, council tax, loan repayments, and vehicle insurance are just a few of the many expenses that eat into their take-home pay. These expenses often surpass the remaining income, leaving individuals struggling to make ends meet. The financial strain can be particularly burdensome for those who are supporting families in both the UK and Nigeria.

Entrepreneurship as a Solution:

Given the economic challenges faced by Nigerians, entrepreneurship has emerged as a viable solution to create economic opportunities and alleviate financial burdens. The case of the entrepreneur in Nigeria, who has successfully generated over 1500 jobs, is a testament to the potential of entrepreneurship in addressing unemployment and poverty. By creating businesses and job opportunities, entrepreneurs have the power to empower young people and women, providing them with avenues for economic growth and self-sustainability.

Addressing Energy Needs and Renewable Energy:

In addition to job creation, addressing energy needs and promoting renewable energy are crucial aspects of Nigeria's economic development. With a growing population and increasing energy demands, the country needs to explore alternative energy sources to meet its requirements sustainably. By investing in renewable energy projects, Nigeria can reduce its dependence on fossil fuels, promote environmental sustainability, and create new employment opportunities in the green energy sector.

Exploring the Potential for Digitization:

As the world continues to digitize rapidly, Nigeria has the opportunity to leverage technology for economic growth. By embracing digitization, the country can enhance its productivity, efficiency, and competitiveness. This can lead to the creation of new digital jobs and the empowerment of young Nigerians with the necessary skills for the future job market. Additionally, digitization can facilitate financial inclusion and provide access to financial services for those who have been marginalized by traditional banking systems.

Actionable Advice:

  • 1. Encourage and Support Entrepreneurship: Governments and organizations should create an enabling environment for entrepreneurship to thrive. This includes providing access to finance, mentorship programs, and reducing bureaucratic hurdles for starting businesses. By fostering entrepreneurship, job creation can be stimulated, leading to economic growth and poverty reduction.
  • 2. Invest in Renewable Energy: Governments should prioritize investments in renewable energy infrastructure to address the energy needs of the growing population. This will not only create employment opportunities but also contribute to sustainable development and reduce the reliance on non-renewable energy sources.
  • 3. Promote Digital Literacy and Skills Development: To fully capitalize on digitization's potential, it is essential to invest in digital literacy and skills development programs. By equipping young Nigerians with the necessary digital skills, they can actively participate in the digital economy and secure employment opportunities in the fast-evolving technological landscape.

Conclusion:

The visit of the World Bank President to an entrepreneur in Nigeria highlights the importance of entrepreneurship in addressing unemployment and economic challenges. Nigerians in the UK face financial difficulties due to heavy taxation and rising living costs. However, by fostering entrepreneurship, addressing energy needs through renewable sources, and embracing digitization, Nigeria can create jobs, empower its youth and women, and achieve sustainable economic growth. With the right support and investment in these areas, Nigeria has the potential to overcome its economic challenges and pave the way for a brighter future.

Resource:

  1. "World bank president to visit entrepreneur in Nigeria creating over 1500 jobs, address energy needs, others", https://nairametrics.com/2023/08/02/world-bank-president-to-visit-entrepreneur-in-nigeria-creating-over-1500-jobs-address-energy-needs-others/ (Glasp)
  2. "6 Strong Reasons Why Nigerians In The UK Are So 'stingy' - Travel - Nigeria", https://www.nairaland.com/7813125/6-strong-reasons-why-nigerians (Glasp)

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