Nigeria's National Bureau of Statistics (NBS) has disclosed that the unemployment rate in Nigeria has dropped to 4.1% in the first quarter of 2023 due to a new methodology.

The new rate presents a significant drop in Nigeria's employment data as the previous report released by the NBS showed the employment rate at 33.3% as of the fourth quarter of 2020.

The aforementioned survey was conducted using the 13th ICLS resolution, a model created and adopted at the International Conference of Labour Statisticians (ICLS) in 1982.

However, NBS subsequently announced that it would adopt a new methodology that aggregates the number of employed and unemployed persons in the country to get accurate data on the labour force.

Meanwhile, the latest report by the NBS showed that the body has enhanced its methodology of collecting labour market data through the Nigeria Labour Force Survey (NLFS) in line with International Labour Organisation (ILO) guidelines.

Speaking at the launch of the new methodology in Abuja on Thursday, August 24, 2023, the Statistician-General of the Federation/Chief Executive Officer of the NBS, Prince Adeyemi Adeniran, noted that the new figure brings Nigeria's Labour Survey in tandem with international standard.

Adeniran disclosed that the survey was carried out in collaboration with international partners, including the World Bank and the ILO, and has been adopted by 26 African countries.

The Statistician-General added that the unemployment rate dropped to 5.3% in the fourth quarter of 2022.

Speaking further, Adeniran noted that the new methodology considered an employed person as anyone engaged in at least one hour of work during the last seven days the survey was conducted.

"About three-quarters of working-age Nigerians were employed – 73.6% in Q4 2022 and 76.7% in Q1 2023. This shows that most people were engaged in some type of jobs for at least one hour in a week, for pay or profit.

"About one-third (36.4% in Q4 2022 and 33.2% in Q1 2023) of employed persons worked less than 40 hours per week in both quarters. This was most common among women, individuals with lower levels of education, young people, and those living in rural areas.

"Underemployment rate which is a share of employed people working less than 40 hours per week and declaring themselves willing and available to work more was 13.7% in Q4 2022 and 12.2% in Q1 2023," the NBS latest report stated.