Capitalizing on Nigeria's Demographic Dividends: the role of Technical and Vocational Education and Training (TVET)

Capitalizing On Nigeria’s Demographic Dividend: The role of Technical and Vocational Education and Training (TVET)

While many other regions of the world are aging, Africa’s population is becoming increasingly youthful. Africans under the age of 25 currently make up 60 percent of the continent’s population and as fertility rates fall elsewhere, larger proportions of the global workforce will be African. By 2035, the number of Africans reaching working age will exceed the rest of the world combined. Looking longer term, the consequences are even more dramatic. By the end of this century, the United Nations predicts that the world will be home to more Africans than Europeans.

Nigeria is the most populous country in Africa and the eighth most populous country in the world, with approximately 180 million people. Despite declining fertility, Nigeria’s population is expected to continue to grow to 239 million by 2025 and 440 million by 2050 due to population momentum, making it then the 4th most populous country in the world (United Nations). Nigeria is therefore, on the verge of experiencing a potential demographic dividend, or the economic growth due to the increase in the share of a country’s population in the working ages (and the corresponding decline of those in the non-working ages).

In simple terms, the demographic dividend is the economic growth that may result from changes to a country’s age structure, due to the shift from people living short lives and having large families to living long lives and having small families. Because of this change in age distribution, fewer investments are needed to meet the needs of the youngest age groups and resources are freed up for

what is called the “economic gift”. This means that the labor force is growing more rapidly than the population that is dependent on it, creating a window for faster economic growth and family welfare. In theory, at the micro level, this transition can result in better living standards for families and higher incomes per person while at the macro level, it can mean significant gains in the economic development of a country.

Even when a country is ripe for demographic dividend, it is only possible if there is proper family planning resulting in fertility decline, improved health through appropriate health reforms, well-educated and skilled youth population, especially one with a gender balance and the implementation of sound economic policies and good governance. Interest has peaked among African leaders (Nigeria included) and development partners on how the continent can transform its rapidly growing population into a transformative force for sustainable development. This is reflected in the many commitments, conversations and efforts on the continent to harness the demographic dividend. These efforts culminated in the designation of “Harnessing the demographic dividend through investments in youth” as the theme for the summit meetings of the African Union for 2017. The African Union’s roadmap for harnessing the demographic dividend calls on countries to maximize their chances of harnessing the demographic dividend by prioritizing investments in four pillars namely:

Employment and Entrepreneurship Education and Skills Development

Prof. Adesoji Adesugba Vice President, ICT, Abuja Chamber of Commerce and Industry. Provost, ACCI BEST Centre

Health and Wellbeing (including family planning) Rights, Governance and Youth Empowerment

One of the main reasons why the demographic dividend paradigm has gathered so much traction among African leaders is that it resonates with the very vivid challenge of dealing with the growing number of unskilled and underemployed African youth that virtually every African country is grappling with.

This demographic shift comes with big challenges, most African countries such as Nigeria whose populations are growing most quickly also tend to be the poorest. Governments already struggling to provide access to health care, education, and infrastructure face an uphill battle against high fertility rates and the increasingly larger cohorts of citizens demanding services. Failure to provide opportunities for this growing segment of the population could easily become a burden for sluggish economies or a source of

political instability. What’s more, young Africans who lack access to employment at home will look for it elsewhere, robbing their country of origin of its engine for economic growth. “Brain drain,” in particular, continues to sap the continent of many of its most highly skilled workers. In 2013, an estimated one in nine Africans with a tertiary education were living and working in developed nations elsewhere.

However, the demographic prognosis isn’t all bad. If Nigeria adopts the most appropriate and effective policies, manages its population growth by controlling fertility rates as much as possible and adequately invests in the human capital of these new generations, the country’s increasingly large workforce will be one of its largest assets. Harnessing Nigeria’s demographic dividend means translating population growth into economic growth, a process that will require creating sustainable jobs that can absorb the growing echelons of young workers. If Nigeria is able to create productive employment for its youth, the potential is immense. Further investment in labor-intensive, value-added industries, such as manufacturing, will capitalize on this powerful driver of economic growth. A large and youthful workforce can drive economic development and play a significant role in social development. To escape poverty, people

need better-paying jobs and more employment opportunities. Human capital must be strengthened, as skills influence employment and earning potential.

Done right, Nigeria will not only truly, stand out in Africa, but will become a global leader. Therefore, Investments must be made in this growing labor force, as well as future generations, to ensure that the Nigeria’s course of development proceeds in a positive direction.

Youth is widely recognized as an important skills-building period, with education being a crucial part. Nigeria’s education systems could do a lot better at building the foundational skills for the future labor force. The private sector is sharing in this responsibility by taking it upon itself not only to ensure that they do not fail the Nigerian youth but in ensuring the growth and sustainability of industries, on which private companies can thrive.

Education and training for productive employment is an important tool for economic growth and development. This is why Business Entrepreneurship Skills and Technology (BEST) Centre is very key at this point in Nigeria’s evolution. BEST is using TVET to capitalize on Nigeria’s demographic dividend. TVET, - an aspect of the educa-

tional process - is viewed as a tool for productivity enhancement towards achieving economic growth. TVET focuses on practical applications of skills learned and intends to prepare trainees to become effective professionals in specific vocations. It also equips trainees with a broad range of knowledge, skills, and attitudes that are indispensable for meaningful participation in work and life. TVET is at the heart of BEST. In one year BEST has trained 337 persons in various trades and vocation, plans to train 1000 before the end of 2019 and 10,000 youths by 2024.

Undoubtedly, we have our work cut out for us, but we are up to the task!

In conclusion, I see the solution to be the birth of many BEST centres. For a Country like Nigeria and the African continent you cannot have one too many. I will implore as many people as possible to partner with us in this laudable venture and see Nigeria rise to become a formidable Nation!

Six Policy Wheels for Creating and Earning Demographic Dividend