World Bank Warns Nigeria’s Urban Boom Could Deepen Unemployment Crisis

ABUJA – The World Bank Group has warned that Nigeria must urgently address poor urban planning, infrastructure deficits and inadequate housing to harness the economic opportunities of rapid urbanisation and tackle the growing demand for jobs.

The warning follows a new report, Sub-Saharan Africa’s Urban Awakening: Catalyzing Economic Growth and Job Creation, which projects that Sub-Saharan Africa will add 748 million urban residents between 2025 and 2050.

The report said the region’s expanding urban population presents a major opportunity to create jobs and stimulate economic growth, but warned that governments must invest in infrastructure, improve urban governance and attract private capital to realise the benefits.

For Nigeria, the findings highlight the need to align the expansion of cities, including Lagos, Abuja, Kano, Port Harcourt and Ibadan, with employment generation, affordable housing, transportation and essential public services.

The World Bank said cities could become powerful engines of economic growth if governments prioritised areas where businesses could cluster and workers could easily access employment opportunities.

Paschal Donohoe, World Bank Group Managing Director and Chief Knowledge Officer, said appropriate investments and reforms in infrastructure, land administration, connectivity and financing would help cities attract private investment, boost productivity and generate formal jobs for young people.

The report noted that urban households spend considerably more per adult than equally educated rural households, reflecting the greater employment and income opportunities associated with urban economies.

However, it cautioned that rapid urbanisation alone would not guarantee improved living standards, stressing that governments must address the distinct challenges confronting major cities, expanding urban outskirts and smaller towns.

It recommended that major cities invest in transport networks, affordable housing and supporting infrastructure to establish accessible business clusters capable of generating employment.

The report also called for reforms to regulations governing the location of businesses and workers, arguing that bringing residential communities closer to economic centres would improve productivity and access to jobs.

On expanding urban fringes, the World Bank urged authorities to plan ahead by establishing road networks and reserving land for essential infrastructure before uncontrolled development makes future interventions more difficult and expensive.

It further highlighted the potential of more than 15,000 towns across Sub-Saharan Africa, recommending that governments concentrate investments in locations with strong economic prospects, particularly those along transport corridors and near commercial centres.

According to the report, targeted infrastructure and improved urban planning could stimulate economic activity and job creation in these towns, while investments in education and healthcare would help residents of less economically advantaged areas access stronger labour markets.

The World Bank also called for appropriate governance structures and financing mechanisms to enable rapidly growing towns to manage expansion and provide essential services.

Mark Roberts, World Bank Senior Urban Economist and co-author of the report, said Africa’s urban transformation would depend on stronger institutions, predictable financing and greater accountability.

He warned that without effective urban governance and adequate resources, rapid population growth might not translate into improved infrastructure, increased investment and better employment opportunities.

The report recommended using low-cost technology to modernise property tax systems, improve revenue collection and strengthen the financial capacity of local authorities.

It said stronger local revenue systems could improve cities’ creditworthiness and attract private investment, including through public-private partnerships for infrastructure development.

The World Bank stressed the need for governments to combine targeted infrastructure investments with improved urban planning, stronger institutions and increased mobilisation of private capital.

It said decisions taken now would shape the region’s urban development for generations, adding that strategic interventions would be critical to translating rapid urbanisation into higher productivity, economic opportunities and more and better jobs.

Save my name, email, and website in this browser for the next time I comment.

Independent Newspapers Limited, registered on July 17, 2001 (RC No: 419927), commenced publication on October 1, 2001. With registered office at 15b, Daranijo Street, off Odusami street, off Wemco road, Ogba, Ikeja