Home Project-material THE EFFECT OF URBANIZATION AND UNEMPLOYMENT ON THE NIGERIAN ECONOMY

THE EFFECT OF URBANIZATION AND UNEMPLOYMENT ON THE NIGERIAN ECONOMY

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Abstract

The work is motivated by the seeming inability of the public sector to make and implement polices and programmes to curb the high rate of rural – urban migration and unemployment that is usually experienced in Nigeria. The study was geared towards an overview of the issues of urbanization and unemployment as well as their implication on the development of Nigeria. Secondary data were collected and analyzed using ordinary least square method. The result obtained from the analysis shows that urbanization has a significant impact on economic growth. It was then recommended that government should strive more to make access to higher education, scholarship and agricultural facilities available to the rural populace and further enhance effort towards population control through public – private sector to make a productive life worth living in rural areas.
1.1 BACKGROUND OF THE STUDY

The rate of urbanization is increasing in both the developed

and developing countries. However, rapid urbanization, particularly

the growth of large. Cities and the associated problems of

unemployment, poverty, inadequate health care, poor sanitation,

urban slums and environmental degradation pose a formidable

challenge in developing countries. Available statistics shows that

more than half of the world lives in urban areas at the end of 2010

from 49% (3.2billion) in 2008. the same report projected that figure

is likely to rise to 60% (4.9billion) by 2030. according to the UN state

of the world population 2007 report, the majority of people

worldwide will be living in towns or cities, for the first time in

history, this is referred to as the arrival of the “urban millennium” or

the ‘tipping point’. In regard to future trends, it is estimated 93% of

urban growth will occur in developing nations, with 80% of urban

growth occurring in Asia and Africa

Urbanization simply defined, is the shift from a rural to an

urban society and involves an increase in the number of people in

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urban areas during a particular year. Urbanization is the outcome of

social, economic and political development that lead to urban

concentration and growth of large cities changes in the land use and

transformation from rural to metropolitan pattern of organization

and governance.

Although Urbanization is the driving force for modernization,

economic growth and development, there is increasing concern

about the effect of expanding cities, particularly on human health,

livelihood and environment. The implication of rapid urbanization

and demographic trends for employment, food, security, water

supply, shelter and sanitation, especially the disposal of waste (solid

and liquid) that the cities produce are staggering (UNCED, 1992). The

question that arises is whether the current trend in urban growth is

sustainable considering the accompanying urban challenge such as

unemployment, poverty and environmental degradation especially in

the developing countries.

Thus, of significant attention to us is the problem of

unemployment as a result of urbanization in the Nigerian urban

areas. Urban unemployment or unemployment in the urban Nigeria

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stands for the conglomeration of people with diversity background,

willing and able to work in the urban areas resulting in pressure of

supply of labour over the demand for labour. Thus causing

joblessness. Implicit in this definition are the following for excessive

manpower supply of labour over manpower demand for labour,

there may have a risen a situation whereby job seekers irrelevant or

not needed education qualification, both the public and private

sector may not have involved a calculated policy to afford them the

opportunity for self employment through planned programs. In

Nigeria it is estimated that in 1900 about 95% of Africa’s inhabitants

South of Sahara lived from the Primary occupations of

farming, hunting & gathering, cattle anomalism, and fishing (Aase,

2003:1) meaning that less than 5% were urban. In 1950 (the start of

the independence period) 14.7% of Africa’s inhabitants were urban

in 2000 had it risen to 37.2% and it is expect 3.76%, 3.35% per year

(UN, 2002) the Nigerian city of Lagos in 1963 had 665000

inhabitants (Rakodi, 1991) and 8.7miliion in 2000 is expected to

become the worlds 11th biggest city by 2015 with 16million

inhabitants (UN, 2002).

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Therefore, a survey by the UN international labour

organization (ILO) indicated that as many as 3 million Nigerians fall

within the working age out of this, 90 percent or about 3 million are

unemployed. A further study on the geographical distribution of

those unemployed shows that as many as 2.7million out of the 3

million live in urban area (ILO survey report African concord 1996).

Surely, it is very difficult to ascertain the current rate of

unemployment in Nigeria but evidence and indication of urban

unemployment overwhelming. There is no gainsaying that there are

significant correlation between urbanization and unemployment in

Nigeria though Urbanization is also a consequence of

industrialization or economic specialization. It connotes the

movement of people principally from agricultural productivity. The

process involves changing relationship and interaction.

Conclusively, there exists convincing evidence that the bulk of

urban unemployment in the country is among able bodied youths.

Data shows that in 2009 at the recent Nigerian economic summit,

group (NESG) policy dialogue on the Nigeria economy, Nigeria’s

minister of finance quoted data from the National Bureau of statistics

(NBS) saying that “unemployment in Nigeria is running at around

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19.7 percent on average and almost half of 15-24 year olds living in

urban areas are jobless” the theme of the policy dialogue growth

through public private partnership.

1.2 STATEMENT OF PROBLEM

The Nigeria population of about 150 million with a growth rate

of 3.2%, more youths are getting into the educational system, more

.youths are also graduating, more are getting into the urban labour

market while more are also becoming unemployed. Some of the

manifestation of the failing of both the educational system and the

economy are unemployment and underemployment. Urban

unemployment is growing progressively worse due to rural to urban

migration. This migration is as a result of high concentration of

Infrastructure and amenities in the urban areas, coupled with

favourable living conditions and standard of living.

Some adolescents do not think about any job at all until they

are faced with the issue of locating one in the urban center. The

contributing fact to this is that career guidance is minimally

emphasized in our school curriculum. When the youths are not

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formally provided with occupational information which forms the

basis for realistic occupational choice, some often accept any job for

which they are not well prepared for these result into inefficiency,

low productivity, low or lack of job satisfaction and they all

culminate into underdevelopment.

1.3 OBJECTIVES OF THE STUDY

The objectives of the study are:

1. To examine the relationship between urbanization and

unemployment in the development of Nigeria.

2. To determine the implication of urbanization on the development

of Nigeria GDP per say.

3. To determine also the implication of unemployment of Nigeria.

GDP per say.

4. To proffer solution that will bring these problems to the barest

minimum in Nigeria.

1.4 RESEARCH QUESTION

The research questions for this study are as follows:

1. Does urbanization and unemployment have any

relationship in development of Nigeria?

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2. Does urbanization contribute to the output of Nigeria?

3. What are the implications of unemployment on the development of

Nigeria?

4. What are the possible solutions that will bring these problems to

the barest minimum in Nigeria?

1.5 STATEMENT OF HYPOTHESIS

For the purpose of this study, the following hypothesis will be tested.

H0: Urbanization has no significant impact on economic growth.

H1: Urbanization has significant impact on economic growth.

H0: Unemployment has no significant impact on economic growth.

HI: Unemployment has significant impact on economic growth.

1.6 SIGNIFICANCE OF THE STUDY

The significance of this study are as follows:

The study would provide an econometric basis upon which to

examine the effect of urbanization and unemployment on Nigeria’s

economy which would be useful to Nigeria as a whole. ,

The study will add to intellectual value of Nigerians. The

knowledge of the effect of urbanization and unemployment will be

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very useful as it will broaden individuals outlook, sharpen their

intellect. and inculcate in them the habit of balanced thinking.

The study will also .educate the government and youth who ignored

agriculture in pursuit of white collar jobs in the office.

Finally, the study will serve as a reference material for further

studies.


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