The Human Resource Report-Nigeria

Nigeria's Human Capital Challenges
Insights from HR Professionals
BUSINESSDAY RESEARCH & INTELLIGENCE
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Economic and Sectorial Reports Release Calendar for 2013
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Nigeria's Human Capital Challenge: Insights from HR Professionals Nigerian Banking Outlook for 2013 Nigeria's emerging mobile payment market: Potential and Opportunities Nigeria Power Sector Reforms update Nigeria Executive Compensation Report Nigeria's Retail Commercial Property Market Report Business Case for Investing in Lagos State 2nd Quarter Reports April to June 2013 Nigeria's Infrastructure Finance report Oil and Gas upstream Nigeria report Telecoms Nigeria Report Nigeria's solid mineral -The opportunities and the challenges Nigerian banks 1st quarter 2013 performance report 3rd quarter reports July to September 2013 The Nigeria Power Sector Report The 2013 Nigerian Banking Annual Performance Report The 2013 Ghana Banking Annual Performance Report Nigeria Oil and Gas Downstream Report 4th quarter reports. September to December 2013 The 2013 Nigerian Insurance Firms Performance Report FCMG sector Performance Report Pharmaceutical and Healthcare sector Performance Report Building materials sector performance report
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Nov 16th 2012 Dec 13th, 2012 December 15th 2012 January 30th 2013 February 15th 2013 March 15th 2013 March 30th 2013
April 15th 2013 May 7th 2013 May 30th 2013 June 15 th 2013 June 30th 2013
July 15th 2013 July 30th 2013 August 30th 2013 September 15th 2013
October 15th 2013 November 15th 2013 December 15th 2013 December 17th 2013
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On 11 November, 2012 BusinessDay held its first Human Resources forum, bringing together HR professionals from Nigeria's large and medium-sized organisations to discuss talent management challenges in Nigeria. The forum provided a good platform for BusinessDay's Research and Intelligence Unit (BRIU) to conduct the first-ever survey of HR professionals in Nigeria. Forty questionnaires were distributed to participants at the forum. The response rate was 100%. The survey focused on issues relevant to recruitment of Nigerian talent. The results of showed: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. HR professionals are essentially indifferent to a candidate's university when shortlisting for interviews or aptitude tests. HR professionals affirm they are unlikely to shortlist candidates holding a Higher National Diploma (HND) for an aptitude test or interview. HR professionals say they are indifferent to which universities of candidates attended when shortlisting for interviews or aptitude test. HR professionals rate most candidates interviewed for jobs as below average. Creative or entrepreneurial skills are most lacking among candidates interviewed according to respondents. HR professionals are optimistic that the quality of manpower available in Nigeria will improve in the future. Employers say general business qualifications are skills currently in the most demand. Candidates with professional accounting qualifications are likely to have an edge in the Nigerian labour market as they are the most in demand by employers. There's a shortage of candidates with engineering skills in Nigeria. HR professionals see these skills as being in high demand over the next five years. The average starting salary for college graduates is in Nigeria ranges from N50,000.00 to N100,000. Online job sites are now the most preferred mode of job advertisements for Nigerian companies.
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Executive Summary
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This report is geared to policy makers and organisations wishing to get insights into labour market issues in, as well as professionals looking for industry views on relevant HR issues in Nigeria. The reports discusses the Nigerian labour market and the issues that drive the market and contains insights from the BusinessDay HR Forum.
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Executive Summary
contd.
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In the battle between nations and companies for global dominance, the most valuable asset any nation or company can deploy is its human capital. The intellectual quality of the human capital is critical to a country's economic development or a company's competitiveness in an economy. Nigeria's global economic competitiveness remains largely dependent on the quality of its human capital just as companies rise or fall on the back of the quality of their human capital. Intellectual quality of human capital is however a function of the quality of the nation's educational system which is the source of labour supply to a nation's economy. While nations can determine the quality of the human capital at their disposal, most firms are largely takers of available human capital within their markets as they often have no control over the educational system of the country in which they do business. When nations improve the standards of their educational system, the quality of human capital available for companies operating in that market improves. Where the quality of human capital is low, firms are usually compelled to import their human capital needs from other nations with higher quality human capital at significant costs to the local economy. For example, Africa spends an average of $4 billion per annum on expatriates according to figures from McKinsey. Low quality human capital has a negative impact on the competitive position of firms operating in a particular economy as they are unable to come up with the winning strategies that they need to compete in an increasingly interconnected world. The quality of human capital therefore has a direct bearing on corporate competitiveness and economic growth. Highly populated countries such as Nigeria tend to have an abundance of human capital. Therefore, the challenge is the quality of the available human capital. In Nigeria specifically, a deteriorating educational system has had a significant impact on the quality of human capital available for development. Nigeria's over supplied labour market This section of the report examines briefly, the challenges of the Nigerian labour market. The Nigerian National Bureau of Statistics (NBS) defines the labour force is defined as people between the ages of 15 and 64 actively seeking employment. The NBS notes that there was a rise of new
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The State of Nigeria's labour market
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entrants in to the Nigeria labour market beginning in 2007, attributable to the addition of 15 new universities, nine polytechnics, and nine new colleges of education since 2006. While the addition of more educational institutions increased the supply of the labour force, the data from the NBS does not however capture the intellectual quality of the new members who joined the labour force. Figures from the NBS show that an average of 1.37 million enrolled in universities, colleges of education and polytechnics in 2006 and another 1.98 million Nigerians enrolled in 2008. Given a 4 and 5-year educational period, most of these students about 3.2 million entered the job market in 2010 and 2011. The challenge, however, is that many of those leaving universities are not getting jobs. Current unemployment figures are put at 23.9% of the labour force. For those with a first degree, the unemployment rate stands at 20.2%. The data does not capture those who are underemployed. It is estimated that an average of 49 million Nigerians are unemployed and of these number, 52% are actually unemployable because they lack any sellable skills. To understand the critical challenge of unemployable in Nigeria's labour market, it is important to understand the challenges in the labour market supply chain.
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Total number of Universities Total number of Federal Universities Total number of state Universities Total no of private Universities Total Number of Polytechnics Total No of Colleges of Education Total No of Federal College of Education Total No of State college of Education Total No of Private College of Education Total Number of senior secondary schools Junior Secondary school (Private and public) Total number of Primary schools Total number of nomadic schools
Source: National Bureau of Statistics
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The challenges in Nigeria's labour supply chain

Table I Type and number of formal education institutions in Nigeria
2006 89 27 30 32 66 79 21 42 16 7,915 10,615 77,668 2,244
2007 95 27 30 34 67 80 21 42 17 14,410 16,238 92,007 2,304
2008 95 27 34 34 71 85 21 43 21 NA 19,244 98,631 2,289
2009 104 27 36 41 75 85 21 43 21 NA 3,410 98,631 2,953
2010 104 27 36 41 75 88 21 45 22 NA 3,439
3,060
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As the table above shows, the number of educational institutions available to train manpower for Nigeria's labour market has steadily increased. But the quality and accessibility of the institutions have not caught up with the challenges of Nigeria's population growth. The number and variety of educational institutions available are not meeting millions of Nigerians' educational needs. For many Nigerians, the labour market challenge starts from birth. With an average estimated birth rate of 6 million per annum, 10% of eligible Nigerian children never get the chance to step into a classroom. There is also a significant gap between the number of students who enrol in Nigerian universities and the number of students that are enrolled in primary schools, an indication of the high dropout rate between both levels of education. Figures from the NBS shows that only about 3.5% of children enrolled at primary school continue their education to the university level. Also only about 2.68% of children in primary schools eventually attend Polytechnics or Monotechnics or colleges of education.
All Universities Federal Universities State Universities Private Universities Colleges of education Polytechnics Monotechnics
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The students that never get to the university
765,522 464,025 277,043 24,454 290,318 303,190 19,623
1,401,888 610,072 448,618 37,369 305,829 258,877 16,789
661,493 433,950 187,279 39,264 315,426 233,045 14,690
577,029 342,524 191,565 44,940 346,006 222,273 17,321
605,068 339,364 218,861 46,843 n/a 229,862 13,239
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All Primary schools Public Primary schools Private Primary Schools Secondary schools Public Secondary schools Private Secondary schools Nomadic
Of those who get to secondary schools, less than 30% take the Senior School Certificate Examinations (SSCE). For example, figures from the West African Examinations Council (WAEC) shows of the 1.67 million students who sat for the May/June 2012 final SSCE, only 38.8% (651,300) of them obtained the required credit in Mathematics and English, the prerequisite for university admission in Nigeria. In between primary and any form of tertiary education in Nigeria, there are about 25 million children who never get to taste any form tertiary education. This has a significant impact on quality of Nigeria's labour market.
Qualities of effective HR Management The CEO leads as the Chief Human Resource Manager The Company has a strong internal value proposition. The firm has a strong people philosophy A strategic work force planning system is in place
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The students that never get to the university
22,861,884 21,632,070 21,717,789 1,144,095 5,637,783 5,013,531
21,294,517 20,080,976 20,663,805 19,042,167 1,621,638 n/a n/a n/a
20,469,395 18,980,395 18,818,544 1,162,675 6,009,869 5,067,787 1,011,019 n/a n/a n/a 1,262,432 n/a n/a n/a
624,252 408,705
880,194 432,411
415,426
483,557
484,694
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The existing options for those who never get to taste any form of tertiary education or drop out of secondary school or primary school are grim. Though there are 132 technical colleges and 70 vocational enterprise centres in Nigeria, most are understaffed with obsolete facilities, according to a September 2012 paper by Dr M.I Oseni, of the Mechanical Engineering Department of the University of Agriculture, Markurdi. This situation creates a high number of low skilled, poorly educated workforce in the Nigerian labour market. The impact is seen in the large pool of poorly trained technicians, notably auto mechanics, builders, carpenters, plumbers in the workforce. The majority of these technicians get their training as apprentices from practising technicians who are only as good as those who also trained them. In reality, these technicians are unemployable. Workers who acquire skills in this manner are not competitive in the labour market. They usually do not have any paper qualifications to back up their training, a barrier to getting formal employment due to documentation requirements. Thus, they operate largely in the informal business environment where they are largely unregulated and untaxed. Level of unemployment The unemployment level in the Nigerian labour market has been deteriorating. It stood at 19% in 2009, 21.1% in 2010 and 23.9% in 2011, according to the latest data from the NBS. The NBS data puts the unemployment situation in the rural area at 25.6% and in the urban area at 17.1%. The high level of unemployment in the rural areas is surprising considering that agriculture is the mainstay of the Nigerian economy making up about 43% of Gross Domestic Product (GDP). Demographics of the Nigeria's unemployed vary widely, NBS figures show. For those who have never attended school, the unemployment rate is 22.4%, but it drops slightly to 21.5% for those who have attended primary school. Surprisingly, for those who attended vocational or commercial schools, the unemployment rate is a high 28.7% and is even worse at 33.4% for those who completed Junior Secondary School (JSS) but could not go further with their education. It
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Lack of options for missing students
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Dual educational routes to the Nigerian labour market Nigerian youths that come into the formal labour market do so mainly through a dual education route, the private education route and the public education route. The private education route is expensive, less crowded resulting in a higher quality of teaching resulting in better prepared graduates. The public education route is cheaper and overcrowded, resulting in lower quality graduates. As the figures in Table II shows, there is an average of 20 million children in public primary schools in any year compared to an average of about 1.3 million in private primary schools. The difference in quality of education between public and primary schools can be captured in the student-to-staff ratios. For example, the student to staff ratio at federal universities stands at 34:2. It stands at a higher 59:1 at state universities. The ratio at private universities in 2007 was 19:2. This may partially explain the disparity in the quality of education received by students within the different university systems. At the BusinessDay HR Forum where the survey for this study was conducted, a top consulting firm disclosed that it usually gets a 3% pass rate on its employment tests; those who pass mostly hail from Nigeria's private universities. It appears private universities, which are usually very expensive and unaffordable to many Nigerians, may become the source of quality manpower for the Nigerian labour market in the future. drops significantly to just 5.1% for those who have a Masters degree compared to 20.2% for those with a Bachelors degree or HND.
McKinsey's Advice to HR Professionals: HR practitioners should make a difference Come out of their shell and engage management Think globally HR Professionals should show their value to the company in measurable ways Get creative about manpower management
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Dual educational routes to the Nigerian labour market
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Our survey respondents overwhelmingly said No when asked if the nature of ownership of the university attended by a candidate has any impact on how HR professionals assess and select candidates for interviews and aptitude tests. The survey asked whether the kind of school impacts how they shortlist candidates for management-trainee positions or entry-level positions.
CHART I: The survey asked four different questions, presented below, with the answer graphically represented: 1.1 Does being a graduate of a private, Nigerian university give a candidate an edge in being shortlisted for an interview?
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Does a candidate's educational route have an impact on his/her labour market attractiveness?
No
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Does being a graduate of foreign university give a candidate a higher chance of being shortlisted?
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1.3
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Does being a graduate of a state university present a disadvantage when it comes to being shortlisted for a test or interview?
No
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Does being a graduate of a federal university offer an advantage of being shortlisted for a test/interview?
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The results show that HR professionals are basically indifferent to nature of ownership of the university candidates attended in shortlisting them for interviews or aptitude tests. In practice, most vacancy adverts ask for candidates to have a minimum grade of second-class upper (2.1) to apply for a job. A critical look at the survey responses however shows some salient bias by HR professionals. Nearly half, 48%, of HR professionals agree that a candidate is likely to be shortlisted for an interview or test because he/she attended a foreign university. This is quite significant and shows an inherent preference for candidates educated outside of Nigeria. This bias is not surprising considering the perception that the Nigerian university system is not turning out candidates suitable for employment. Among Nigerian university graduates also, there is a bias for candidates from federal government- owned universities over private owned universities and state owned universities. Thirty percent of HR professionals surveyed said they would pick a candidate for an interview or test because he attended a federal university. That's compared to 18% who say they would shortlist a candidate just because he/she attended a private university. Also, interesting is the fact that 21% of HR professionals surveyed agreed that attending a state university is a disadvantage to being shortlisted for an interview or test. drops significantly to just 5.1% for those who have a Masters degree compared to 20.2% for those with a Bachelors degree or HND.
Manpower planning Have a human capital plan, ensuring the availability of competent personnel at all times Always have people in training for new branches and key roles
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Our survey respondents confirmed the unofficial bias by Nigerian organisations for Bachelors degree holders over holders of the Higher National Diploma (HND). Sixty-nine percent of HR professionals surveyed say a candidate with a bachelors degree will have a higher chance of being shortlisted for an interview/test than a candidate with a HND. This is confirmation of the anecdotal experience of holders of HND in the Nigerian labour market who often find themselves rejected by the labour market, despite spending five years to acquire an HND. The Nigerian government seems at loss for a permanent solution for this anomaly, which has significant financial and psychological costs for those holding an HND. .
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Preference for Bachelor's degree over HND
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Over the years, there's been a growing controversy on the way candidates who hold a Higher National Diploma (HND) are treated compared to candidates with a bachelors degree. Holders of the HND qualification have become basically unemployable by most Nigerian organisations who don't consider them as well trained as their university counterparts. Some organisations especially banks actually prefer employing holders of the Ordinary National Diploma (OND) in the low cadre of their organisations rather than HND holders. In 2006, in a bid to resolve the non-acceptance of HND qualifications by employers of labour in Nigeria, the Federal Government set up a committee to examine how it could merge Polytechnics into campuses of existing universities. The report of that committee was not made public, so the controversy drags on as the Polytechnics and Monotechnics keep supplying manpower held in low regard by the labour market.
HR Insight
Tips on how to treat your employees Understand your employees have options Do not use them as tools Use them as customers so that they can give you the best
HR Professionals say they have no preference for specific universities in shortlisting candidates for interviews, as 70% of the HR respondents answered No when asked if they have specific university preferences. It is worthy to note that 30% of HR Professionals also answered Yes to whether they have a preference for Federal Universities in shortlisting candidates for interviews. Since the surveys were conducted the same day, we may assume that the same set of HR professionals who have a preference for Federal University graduates that also show preference for specific Nigerian universities.
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The Diploma/Degree controversy
No Preference for certain universities
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HR Professionals say they have no preference for specific Nigerian Universities
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No preference for specific Nigerian universities
No
Yes
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HR professional's rating of graduates interviewed for a position
Since nearly 90% of graduates available for employment are products of the Nigerian public tertiary education system, which has many challenges such as poor infrastructure and overcrowded classrooms, how do these graduates perform on job interviews? HR professionals were asked to rate the average Nigerian graduate interviewed for a job on a scale of 1 to 10, with 1 being the lowest and 10 being the highest. The results show 70% of respondents rating candidates at 5 or below. The highest frequency rating was 5, with 37% of respondents rating the candidate as average but only 30% of respondents considered the quality of candidates interviewed for jobs as above average.
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Average rating of candidates interviewed
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Rating of candidates interviewed
R8 R7 R6 R5 R4 R3
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Skill sets desired by HR professionals
HR professionals agree that it is not enough to graduate with excellent academic skills. They identified several skills that are expected from the modern graduate from any tertiary institution. HR professionals agree that they generally desire certain skills in candidates they seek to recruit. The skill sets identified include: a. b. c. d. e. Information Technology (IT) Skills Verbal Skills Numeric Skills Creative Thinking Skills/Entrepreneurial Mind-Set Negotiating Skills
Our survey asked HR professionals what skills they find most lacking in Nigerian graduates interviewed for vacant positions. They identified creative thinking skills as the most lacking among candidates seeking employment.
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Tips on top talents Academic excellence does not translate into being a talent Talent management focused only on the top talents is not the best strategy The higher the talent, the lower the loyalty Take care of the average performers. The team is more important. Those at the top of the talent pool should not exceed more than 20% of your compensation package It is critical to retain top talent. When such crucial talent leaves; it has a disproportionately negative business impact on the organisation
Skills most lacking in candidates
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Negotiating Skills
Creative Thinking Skills
Numerical Skills
Verbal Skills
IT Skills
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Verbal skills rank second as the most-lacked skill set among candidates seeking jobs, while numerical skills ranked third, almost on the same level as IT skills. In a challenging economic environment, there is no doubt that employers would value creative thinking or entrepreneurial skills. Creative thinking skills are not, however formally taught in schools, but can be enhanced in the formal academic environment by the way work is designed
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and delivered to students. Nigerian tertiary institutions may thus have look critically at how students are taught. Many students admit that most lecturers in the tertiary education system are more comfortable with students regurgitating exactly what they have been taught in class. Lecturers typically don't allow students to argue an opposing viewpoint which may be coherent but not what was not taught in class. This tendency produces students who are good at cramming rather than thinking. This may be a critical deficiency in the Nigerian educational system. Strategies adopted by Nigerian employers to retune freshly employed graduates HR professional who spoke at the BusinessDay HR forum argued that deficiencies in the Nigerian academic environment are responsible for the large turnout of graduates not suitable for employment. The HR practitioners also explained what they are doing to better equip unemployable graduates. Some strategies include direct collaboration with schools by providing internships with top employers while still in school to so they can understand the real demands of the work environment. Accenture is one company with such an internship program. Most employers however have a post-employment fine-tuning strategy in place to adapt new entrants to their needs. Nigerian employers generally conduct entrance-level tests for fresh graduates to weed out poor academic performers.
Candidates who pass aptitude test and interview processes are however taken through further fine-tuning processes.
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MERISTEM TALENT MANAGEMENT PROGRAMME
Meristem, a Nigerian asset management company, runs a Talent Management Programme (TMP) scheme designed to standardise the organisation's succession planning process. It is borne out of the need to identify, select and set apart human resource talents within the organization who are capable of driving the organization towards achievement of its medium to long term strategic objectives. Identified talents are groomed, trained and given a sense of ownership, in an effort to prepare them for the future Meristem. They are well-motivated individuals who have demonstrated enthusiasm and commitment in the achievement of the company's goals; upholding the brand image and are able to stand out as role models to other members of staff. The company has three categories of talents, senior leadership, mid-level employees with leadership potential and entry-level employees with leadership potential. Candidates for the TMP are selected based on qualitative and quantitative criteria that the company refers to as the 6Cs: Character, Commitment, Contribution, Consistency, Content and Competence. Being selected as a TMP at Meristem comes with privileges such as cash incentives, employee share ownership scheme, annual overseas training amongst other benefits. The company lists the benefits it has derived from its TMP to include; stimulating a sense of ownership in employees and contributing greatly to the achievement of enduring staff retention. It also aided the following: linkage of business strategy to human capital needs, attraction and retention of the right people, motivation, recognition, performance rewards, growth of leaders, development of the organization and creation of a talent culture.
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Case Study
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Basically, HR departments of Nigerian companies deal with the challenge of fresh recruits in the following ways; Internal training school for new recruits Local and international and local collaborations to bring in expert facilitators to train new recruits Assessment tests to pick quality graduates Assessment test at the end of training to determine those that can be given permanent job offers An on-boarding process whereby new recruits are attached to an experienced staff mentor who serves as guide for the new recruit in his/her first few months on the job. Some firms have created specific departments that usually require high-quality graduates to pass through as a recruiting nursery for the whole organisation. All new recruits have to go through the nursery and are then deployed to other parts of the organisation as the need arises. Top Talent management strategies In an environment with low-quality manpower, getting top talent to work for an organisations is a challenge. HR professionals at the BusinessDay HR forum agreed that the top companies with highly recognisable brands are able to attract top talent into their organisations. The challenge however remains how to keep them from leaving for competitors locally and internationally, as most have highly marketable skills. Some talent management strategies employed by top Nigerian firms include: Ensuring that remuneration is within 75% of the compensation of top competitors Employees are allowed to work from home Employees are given Internet and phone allowance even when working from home A flexible-leave incentive which allows workers to work for another company for a period of time except a competitor even while still being paid a fraction of their salaries. HR Professionals are optimistic about the future Apparently, HR practitioners are not all gloomy about the future. There is a level of optimism among HR professionals that the suite of employment skills of Nigerian graduates will improve in future.
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Fifty-eight per cent of HR professionals responding to our survey are optimistic about the future of quality of manpower in Nigeria while 42% remain pessimistic. HR professionals were not asked to state reasons for their optimism. The optimism could, however, be as a result of the increase in private universities, which is seen as potential source of better quality graduates in the future. Some public universities, especially at the federal level are taking initiatives to respond to the demands of better quality graduates, albeit gradually. Some universities have adopted a zerotolerance stand against academic shutdowns by lecturers over labour disputes resulting in more time in school for students and longer lecture periods. The National Universities Commission (NUC) is also clamping down on unaccredited courses at universities while getting more stringent on accreditation requirements and enforcement. University qualifications in demand With a fast-growing Nigerian economy and HR optimism that human capital quality is going to improve in the future, it is critical to know the qualifications that will be in demand. Our survey attempted to find out which skills are currently in the most demand. General business qualifications topped the list with 32% of respondents stating those skills are in demand. Engineering qualifications ranked next with 26% of those surveyed, while science-based and accounting-based qualifications tied at third.
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Do you see the skill sets of Nigerian graduates improving?
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University qualifications in demand by Nigerian Employers
To get an understanding of the actual qualifications in demand in the Nigerian labour market, BusinessDay Research and Intelligence Unit (BRIU) obtained data from Jobberman, Nigeria's premier online recruitment site. BRIU looked at actual job vacancies advertised along different industries for the period January to November 2012. The data is presented in the bar chart below:
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General Business Qualifications
Accounting Qualifications
Science Based Qualifications
Engineering Qualifications
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Jobberman Data
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University qualifications in demand by Nigerian Employers

ICT / Telecommunications Consulting Education Others Healthcare Manufacturing / Production Banking / Financial Services FMGG Oil & Gas / Mining Trade / Services NGO Construction / real Estate Advertising / Media Government Logistics / Transportation Hospitality Leisure Food Services Fashion / Art Agriculture / Poultry / Fishing Legal Travels /Tours Broadcasting
As the bar chart above shows, job advertisements from the ICT/Telecommunications sector topped the list. Consulting jobs came in second. These positions may fall in line with our respondents' need for general business qualifications. We did not get the data for the actual positions advertised. Third on the list was education. Jobs advertised in education are likely to be teaching positions, which have surged in line with the rise in private educational institutions. ICT/Telecommunications jobs are mostly driven by the rise in the use of computers in most organisations, a fast-growing trend in the Nigerian economy following the surge in mobile phone and telecom infrastructure penetration in the economy.
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Source: Jobberman/BRIU
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Our survey also sought to find out which certifications are in most demand among the common professional certifications available in Nigeria. The accounting professional qualifications provided by the Institute of Chartered Accountants of Nigeria (ICAN) and UK-based ACCA were picked as the most in demand by the HR professionals surveyed. Twenty-two per cent of HR professionals surveyed answered that both qualifications were the most in demand. Computer software certifications were ranked as the third-most demanded in Nigeria.
Computer Hardware Certifications CIS CIBN Computer Software Certifications COREN CFA ICAN ACCA
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Professional certifications that are in most demand
Professional Certifications in most demand
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ACCA- Association of Certified Chartered Accountants; ICAN- Institute of Chartered Accountants offers the... ACA (Associate Chartered Accountant (ACA) certification. CFA- Chartered Finance Analyst (CFA) is an internationally-recognised certification in the securities industry. COREN is the engineering professional body in Nigeria. CIBN- Chartered Institute of Bankers of Nigeria (CIBN) offers the Associate Chartered Banker certification. CIS- Chartered Institute of Stockbrokers offers the Associate Chartered Stockbroker certification.
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We also sought to find out which industries suffer most from lack of quality manpower. The HR Professionals identified Engineering as the sector with the biggest shortage in Nigeria. The Power/Electricity sector, ICT/Telecommunications and oil and gas were all ranked as sectors suffering from a manpower shortage. Not surprisingly, accounting/banking/finance skills were ranked low in the areas of manpower shortage. Most tertiary institutions in Nigeria oversubscribed offerings in Accounting/banking/finance fields while the engineering and other science-based qualifications are hardly fully subscribed.
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Industries with most manpower shortage
Sectors/Industries with the most manpower shortage

Engineering Power / Electricity ICT / Telecommunications Oil /Gas Sales Business / Development Jobs Human Resources Construction Logistics / Procurement Accounting / Banking /Finance
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Qualifications that are expected to be in hot demand in the next five years
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Still looking into the future our survey, asked HR professionals which qualifications are likely to be in demand in the next five years in Nigeria.
Engineering skills are expected to be the hottest, most in-demand qualifications in Nigeria over the next five years. This may not be too surprising since the Nigerian economy has seen an undersupply of qualifications in this in the last few years. With economic growth rates expected to remain in the high single digits in the next few years, there will be an increased demand for skilled engineers craftsmen, technical and senior engineers. The challenge however will remain the availability of training institutes, especially for technicians due to the poor state of facilities and low number vocational training centres in the country.
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Engineering ICT / Telecommunications Pure Science Logistic / Procurement Oil & Gas Power / Electricity Accounting / Banking /Finance
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Qualifications that are expected to be in hot demand in the next five years in Nigeria
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Still looking into the future our survey, asked HR professionals which qualifications are likely to be in demand in the next five years in Nigeria.
N150, 000 to N200, 000 N100, 000 to N150, 000 N50,000 to N100, 000 less than N50, 000
A majority (65%) of respondents picked the N50, 000 to N100, 000 ranges as the start-up pay for their new recruits in Nigeria. A further 23% place the average start up pay at N100, 000 to N150, 000. This means that the average new recruit in the Nigeria should expect his start up pay to be in this range depending on the size and buoyancy of the company and also the location of the company. Usually, firms in the commercially active cities of Lagos, Abuja and Port Harcourt pay in the high range of this salary range while firms in low commercial areas pay in the lower range of the salary bracket.
HR Insight
Three ways Nigerian companies manage new recruits Candidates are given clear details of their career progress within the company Starting pay is usually low but candidates are shown at what level that pay will begin to rise Candidates are told that their performance will determine how far they rise in the company
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Start-up pay for new Nigerian recruits
N200, 000 and Above
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What is the average starting pay for the newly-employed Nigerian graduate?
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Online job sites and individual company websites are now the preferred mode of placing job adverts for new recruits by Nigerian companies, according to 28 of respondents. Company websties came in next at 21%. Referrals as a means of recruitment was picked by a significant 16% of HR professionals surveyed.
How Jobberman is using Technology to bridge the recruitment gap in Nigeria.
A few years ago, the recruitment process in Nigeria was an arduous, time-consuming manual process. The Iinternet is a welcome relief when it comes to making recruitment decisions and choices. Jobberman.com has emerged as one of the fastest-growing online job portals, using technology to meet the needs of recruiters for a fast, efficient and transparent recruitment process. For job seekers it's an easy to use recruitment portal.
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Preferred medium of job adverts for new recruits
Electronic Media Referrals Company Websites Newspapers Social Media Online Jobsites
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Medium of job advert for new recruits
Case Study
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For organisations, jobberman.com has simplified the process of finding the right people for critical positions. Once a company decides it needs new manpower, all it needs to do is fill a job description and qualifications required form provided on the jobberman.com portal. Staff at jobberman.com immediately screen and publish the vacancy on the jobberman website which is immediately seen by the millions of job seekers who visit jobberman.com. Advertising on jobberman.com is free. Job seekers are also allowed to create their profile on the jobberman portal and upload their CVs. As soon as a job vacancy is uploaded on the website, all job seekers with uploaded CVs get a notification or an alert. This means that recruiters can get an almost instant response to their job advert placements unlike before when they had to wait for days. Recruiters can also edit job adverts and also have access to the jobberman.com CV database to search for suitable candidates that match their job profile. In the age of social media, jobberman.com also syndicate job adverts on Facebook and Twitter and also by SMS and BBM and on more than 20 top publisher partners' sites. Using Google Chrome Extension which runs when the Google Chrome browser is in use, candidates can also get a list of recently updated jobs on jobberman.com, without having to go to the website.. Using technology, jobberman.com has been able to bridge a critical gap in the Nigerian labour market, reducing the burden of recruiters seeking critical manpower fast and efficiently while also helping job seekers stay abreast of new opportunities in Nigeria's highly competitive labour market.
HR Insight
Characteristics of a company classified as a great place to work Great leadership/management Adequate compensation Most impact on society Career progression Great brand
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The Process
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With an average economic growth of 6% to 7% in the last decade well above the global average economic growth rate Nigeria is attracting strong global brands. In the last decade, international players such as Google, Intel, IBM, JP Morgan, Morgan Stanley, have set up offices or representative offices in Nigeria. These brands require high quality human capital. These global brands will satisfy this need by poaching the existing few talents in Nigerian organisations that cannot offer the higher remuneration usually offered by these strong global brands. Where they are not able to recruit locally, they are likely to bring back into the country Nigerians based abroad. The expectation is that the battle for top talents in the Nigerian labour market is going to remain intense going forward. The on-going privatisation in the Nigerian power sector and the expected reforms in the oil and gas sector will intensify the need for different skills especially in engineering and related fields. The existing facilities in Nigerian universities to deliver the skills that will be required by these newly privatised companies is not adequate. A good number of private universities place more emphasis on training students in general business qualifications than in engineering. This means that the new electricity companies and oil and gas companies may find it challenging getting locally-trained manpower for their needs. Nigerian education policy makers will have to urgently the address the need to restructure the educational system, first to equip the 25 million children who drop out of the educational system with sellable vocational skills and then that those who leave school are appropriately equipped for the job market. Without the much-needed educational reforms, human capital will remain a drag on Nigeria's economic potential.
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Factors that will influence the future of the Nigerian labour market
BusinessDay Research and Intelligence is a unit of BusinessDay Media Limited, specialising in the gathering and analysis of economic and financial data as well as forward-looking intelligence on Nigeria and West Africa. We have a complete database and valuation of all Nigerian-listed firms, with the aim of expanding it to include listed companies in West Africa over the next 12 months. We provide in-depth analysis of different sectors of the Nigerian and West African economy, drawing extensively from our network of industry contacts to provide insights which are not publicly available. We are committed to the dissemination of reliable, credible, timely and relevant information to both private and public sector decision-makers.
Contacts: Anthony Osae-Brown Editor- BusinessDay Research Tel: +234-8185193932 anthony@businessdayonline.com Olowa-Peter Dele Analyst Tel:234-8055319515 Email:peterolowa@businessdayonline.com Teliat Sule Abiodun Analyst Tel: +234-8057000012 Email:teliat.sule@businessdayonline.com Phillip Okonji Creative Consultant Tel: +234-8023042343 Email:p.okonji@businessdayonline.com Obodo Ejiro Analyst Tel: +234-8050745774 Email:o.ejiro@businessdayonline.com

The Human Resource Report-Nigeria

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Nigeria's Human Capital Challenges

Insights from HR Professionals

BUSINESSDAY RESEARCH & INTELLIGENCE

Kaduna Kaduna Niger Niger Abuja Abuja

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Plateau Plateau Nasarawa Nasarawa Taraba Taraba Benue Benue

Economic and Sectorial Reports Release Calendar for 2013

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BUSINESSDAY RESEARCH & INTELLIGENCE

Kaduna Kaduna Niger Niger Abuja Abuja

Gombe Gombe Adamawa Adamawa

Plateau Plateau Nasarawa Nasarawa Taraba Taraba Benue Benue

Nigeria's Human Capital Challenges

Rivers Bayelsa Rivers Bayelsa

BUSINESSDAY RESEARCH & INTELLIGENCE

Kaduna Kaduna Niger Niger Abuja Abuja

Gombe Gombe Adamawa Adamawa

Plateau Plateau Nasarawa Nasarawa Taraba Taraba Benue Benue

Nigeria's Human Capital Challenges

Rivers Bayelsa Rivers Bayelsa

BUSINESSDAY RESEARCH & INTELLIGENCE

Kaduna Kaduna Niger Niger Abuja Abuja

Gombe Gombe Adamawa Adamawa

Plateau Plateau Nasarawa Nasarawa Taraba Taraba Benue Benue

Nigeria's Human Capital Challenges

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The State of Nigeria's labour market

BUSINESSDAY RESEARCH & INTELLIGENCE

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Gombe Gombe Adamawa Adamawa

Plateau Plateau Nasarawa Nasarawa Taraba Taraba Benue Benue

Nigeria's Human Capital Challenges

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BUSINESSDAY RESEARCH & INTELLIGENCE

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Plateau Plateau Nasarawa Nasarawa Taraba Taraba Benue Benue

Nigeria's Human Capital Challenges

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The challenges in Nigeria's labour supply chain

2006 89 27 30 32 66 79 21 42 16 7,915 10,615 77,668 2,244

2007 95 27 30 34 67 80 21 42 17 14,410 16,238 92,007 2,304

2008 95 27 34 34 71 85 21 43 21 NA 19,244 98,631 2,289

2009 104 27 36 41 75 85 21 43 21 NA 3,410 98,631 2,953

2010 104 27 36 41 75 88 21 45 22 NA 3,439

BUSINESSDAY RESEARCH & INTELLIGENCE

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Gombe Gombe Adamawa Adamawa

Plateau Plateau Nasarawa Nasarawa Taraba Taraba Benue Benue

Nigeria's Human Capital Challenges

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The students that never get to the university

765,522 464,025 277,043 24,454 290,318 303,190 19,623

1,401,888 610,072 448,618 37,369 305,829 258,877 16,789

661,493 433,950 187,279 39,264 315,426 233,045 14,690

577,029 342,524 191,565 44,940 346,006 222,273 17,321

605,068 339,364 218,861 46,843 n/a 229,862 13,239

BUSINESSDAY RESEARCH & INTELLIGENCE

Kaduna Kaduna Niger Niger Abuja Abuja

Gombe Gombe Adamawa Adamawa

Plateau Plateau Nasarawa Nasarawa Taraba Taraba Benue Benue

Nigeria's Human Capital Challenges

Rivers Bayelsa Rivers Bayelsa

The students that never get to the university