essay on youth unemployment in nigeria

Youth Unemployment in Nigeria: A Situation Analysis

Subscribe to africa in focus, tunji akande ta tunji akande professor of agricultural economics, nigerian institute of social and economic research (niser).

September 23, 2014

• 13 min read

The State of Youth Unemployment in Nigeria

Nigeria’s population is said to have reached about 167 million people in 2012 (National Bureau of Statistics). The National Population Commission (NPoC, 2013) states about half of the population is made up of youth, defined as individuals between 15 and 34 years of age. Unfortunately, as the youth population grows, so does the unemployment rate. In fact, unemployed youth numbered about 11.1 million in 2012. Here we explore a number of trends in youth unemployment in Nigeria and discuss various government programs attempting to address the problem.

First, in terms of age , younger youth struggle even more to find jobs: At least two-thirds of unemployed youth are between 15 and 24 years of age. And, in terms of gender , available statistics show that a majority of unemployed youth are female. As shown in Table 1, women accounted for more than 50 percent of unemployed youth between 2008 and 2012.

Analysis of youth unemployment by geographical/settlement location (rural and urban areas) indicates that youth unemployment is mostly in rural areas and rapidly growing: From 2010 to 2011, the share of unemployed youth in rural areas increased from 47.59 percent to 59.95 percent. The population of unemployed youth in rural areas rose from 2.9 million in 2008 to about 5.9 million in 2012.

Table 1: National Youth Unemployment Figures by Gender and Geography, 2008-2012.

Relatedly, in terms of education, from 2008-2012, over half of unemployed youth did not have an education past primary school (see Figure 1). This particular group has consistently accounted for over 50 percent of all unemployed youth. However, graduates of tertiary institutions also seem to be badly hit by unemployment too—making up about 20 percent of youth unemployment and often remaining unemployed for upward of five years after graduation (NISER, 2013).

Figure 1: National Youth Unemployment Figures (15-34 years) by Education, 2008-2012

Several factors may be blamed for the prevalence of youth unemployment in Nigeria. There is a high population growth rate—3.5 percent per annum—which accompanies an already large national population of over 167 million people. In addition, deficient school curricula and poor teacher training have contributed to the failure of educational institutions to provide their students the appropriate skills to make them employable. Since schools in rural areas are generally more deficient in infrastructure, teaching facilities and teacher quality than schools in urban areas, this may help account for the high growth in rural unemployed youth. In fact, some experts suggest that the major jump in rural youth unemployment in 2011 (see Table 1) could be due to the mass failure in national examinations conducted among final-year secondary school students in 2010, which made many of them unemployable in 2011.

In addition to these supply factors, there is a lack of vibrant industries to absorb competent graduates. This obstacle was in part caused by an infrastructural deficit and a debilitating structural adjustment program (SAP) implemented by Nigeria in the 1980s, which led to the closure of many industries and from which the country is yet to fully recover. It is also well-known that the youth unemployment situation has been aggravated by flawed and inconsistent public policies on employment.

Another reason might be that policymakers have had to confront inadequate information and data that can form the basis of effective planning. As reported in other studies (Asaju et al., 2014 and Iwayemi, 2014), employment data are very hard to obtain, even from statutory institutions and agencies established for gathering socio-economic data. Where unemployment registers exist at all, they are limited to urban areas, and, in fact, not all those searching for employment attempt to register. In the absence of such data, policymakers tend to rely on cross-sectional household surveys, which are often inconsistent and full of errors. This lack of data makes it difficult for policymakers to understand the nature of the employment challenge and make informed decisions on how to support young people in the labor market. The scarcity of data on informal employment and entrepreneurship in particular is a major obstacle, given the importance of this sector for youth employment.

Public Policies That Have Worked Best

Ascertaining policies that have worked in addressing unemployment in Nigeria is rather difficult in light of the incredibly high and rising unemployment rate—and at least around 1.8 million youth are entering the labor market every year (Falusi, 2014). Since it is unclear to what extent any given intervention may have reduced the youth unemployment rate in aggregate, it may be more helpful to think of effective policies as those which have delivered on their stated objectives. The sustainability of a program could also be considered an indicator of success.

Different programs have been introduced by various administrations over time to address youth unemployment, which has been an issue of significant public concern since the days of SAP. In fact, youth unemployment became the focus of the social policy of the military government that ruled Nigeria for much of its years as an independent nation. The initial reaction of the government was to draft unemployed youth to public programs such as Operation Feed the Nation (OFN) and the Directorate of Food, Road and Rural Infrastructure (DIFRRI), which provided immediate and direct jobs to participants interested in agriculture.

More coordinated and planned measures later followed, and these are classified into three categories: labor demand, labor supply and labor market interventions . Labor demand strategy focused on creating jobs immediately through public works or creating certain jobs in the private sector aimed at promoting entrepreneurship and skills enhancement. Labor supply strategy dealt with the training and education of prospective job seekers. The labor market intervention strategy focused on improving the labor market and matching demand and supply interrelationships.

However, with the transition to civilian rule in 1999, successive civilian administrations— including the current leadership—have tried to refocus unemployment programs, discontinuing many of the old programs, restructuring some of them and creating new ones. It should be noted that as a federation, public policy on employment has been addressed at the three levels of government—federal, state and local—and that this new emphasis on unemployment has made youth the primary constituency of concern. Consequently, certain institutional arrangements and agencies have been established to promote employment among youth. Three of the current and most prominent programs include the Subsidy Reinvestment and Empowerment Programme (SURE-P), the Youth Enterprise With Innovation in Nigeria (YOU-WIN) and the Osun State Youth Employment Scheme (O’YES), among others.

The SURE-P was introduced in February 2012 and focuses on management and investment of federal government savings derived from proceeds accruing from the partial removal of the subsidy on petroleum products. The SURE-P is the flagship of recent efforts to provide job opportunities to graduates of tertiary institutions. It is more or less a whole range of activities and programmatic schemes, including the Graduate Internship Scheme (GIS), Community Services Scheme (CSS), Vocational Training Scheme (VTS), and Community Services, Women and Youth Empowerment (CSWYE), among others.

One of the more successful schemes of the SURE-P is the GIS, which offers unemployed graduates the opportunity to undergo a one-year internship in firms, banks, ministries, government departments and agencies, as well as in small and medium enterprises (SMEs), relevant to beneficiaries’ disciplines. The purpose of GIS is to help beneficiaries acquire the appropriate skills and practical knowledge that will make them more suitable for the job market. About 50,000 graduates were selected for the first phase of the scheme out of some 85,000 applicants. Even though around 2000 firms expressed interest in hosting graduates, only 293 firms were approved.

This indicates that most of the firms that wished to participate in the program were unable to meet the rigorous selection criteria. To be selected, a firm had to be registered with the Corporate Affairs Commission, show evidence of Value Added Tax registration and possess a Tax Clearance Certificate. In addition, the firm had to submit training and mentoring plans for each of their interns. The firms were further assessed on the basis of their years of business experience and location. A final criterion was that the firm had to pass a verification exercise, which involved confirmation of information regarding its mentoring capabilities and the number of interns it could host.

Companies that met these criteria and were selected to participate enjoyed a host of benefits, including tax rebates, free labor from their interns (the government paid a monthly stipend of N18,000, approximately US$110, to interns) and the opportunity to claim that they are fulfilling some aspects of their corporate social responsibility (CSR) to the community in which they operate. Testimony from participants shows overwhelming acceptance of the scheme, saying it enhanced their job skills, provided them with practical knowledge, improved their chances of employment by the firms that provided their training, and by other private companies, government institutions, or helped them establish their own businesses through an initial capital provided by the government. The number of participants for the 2014/2015 period of the program will be increased to 100,000.

The YOU-WIN program was designed to create job opportunities specifically, again, for graduates of tertiary institutions that elect to go into business as entrepreneurs. Simply put, participants are required to develop and execute their own business ideas that will provide jobs for themselves and other unemployed youths who may or not be graduates. By 2015, the program is expected to have provided 40,000 to 50,000 new jobs, encouraged expansion, specialization and job spinoffs of existing businesses, and enabled young entrepreneurs to have a broad professional and business network (NPC, 2013).

At the state level, the government established various forms of employment-creating programs. The most prominent one is the Osun Youth Empowerment Scheme (OÝES) established by the state of Osun. The scheme provides a series of employment opportunities for participants as traffic controllers, sanitation and environmental officials, security personnel, and other works and services. The World Bank has singled out the OYES scheme for its success in promoting youth employment in Nigeria and has recommended the scheme for replication by the federal and other state governments.

Why Have Some Programs Been Unsuccessful?

Public policies directed at addressing youth unemployment have faced different challenges including finance, the absence of good administration and implementation, inconsistent policies, unimpressive responses from would-be trainees, and unqualified resource personnel handling the training programs. As stated above, programs that were expected to be successful but did not meet those expectations were those created in the 1980s and have not drastically improved in spite of modifications over the years. For example, the National Accelerated Poverty Reduction Program (NAPEP) was too big for its meager budgetary allocation over the years. Many of the available funds for the program went to overhead and administrative costs in offices spread over the entire country, limiting its impact. Similarly, the National Directorate of Employment (NDE) had no openings of its own to engage unemployed youth, providing only vocational training to young school leavers. There have been insufficient funds to provide start-off capital for the youth who complete their training.

While many programs have targeted creating opportunities for youth employment, the outcomes have been greatly limited by a host of factors, including:

Training is not supplemented with loans and not targeted appropriately : According to a recent survey by the Nigerian Institute of Social and Economic Research (NISER), youth unemployment programs have concentrated more on training than on other activities that actually provide openings for immediate employment in white-collar jobs or jobs in the small- and medium-scale industries (NISER, 2013). This strategy has not yielded the desired results because the training is often not accompanied by soft loans, which graduating trainees could use as start-up capital in order to facilitate their quick integration into the labor market. Targeting has also presented a challenge. Often, all categories of unemployed youth are lumped together as if they are homogeneous (in terms of education, skill, capabilities, etc.) when, in fact, there ought to be distinctions on the basis of education, experience, and willingness to learn. The lumping together of graduates of primary school with those coming out of secondary schools and/or tertiary institutions makes training not only ineffective but also less impactful.

Weak management, complex structures and inadequate funding hinder success: When you run a multiplicity of programs at the same time under a weak management structure and practice, with inadequate funding, and with several layers of authorities that sometimes bicker among themselves, there is the risk of not being focused and effective. The process becomes complex in the absence of monitoring and coordination of planned activities. Indeed, the responsibility for youth employment policy is split among a wide range of ministries and agencies, often operating in isolation and competition with each other. In the absence of a coherent strategic approach, resources are likely to be misapplied. In addition, public funding is often insufficient and erratic and, indeed, not released fully.

The problem is largely structural and therefore needs structural solutions: The initiatives listed earlier simply bring a select group of youth into employment, but are grossly inadequate to accommodate the army of unemployed youth. Besides, these programs are conceived with short-term gains in mind, and a little consideration of long-term perspective that may change the dynamics of unemployment substantially. The structural changes needed involve taking a comprehensive approach to employment issues in general. This could be done in a way that not only targets youth, but which also looks at educational, training and labor market issues so that dynamic and progressive policy interventions are initiated to address all issues comprehensively.

Demand-side factors need to be considered: A final consideration is to ask whether indeed a policy stance actually addresses factors that limit the demand for labor. Recently, public policy has encouraged youth to undertake entrepreneurship, which can make them create employment for themselves and also become employers of labor. However, in the long-run, the industrial sector must also expand to create opportunities for youth. Industrial expansion must be based on available local resources in agriculture and solid mineral exploitation as well as value chain activities in those two sectors. The development of infrastructure, particularly electricity, will provide the necessary boost to any meaningful approach towards expanding industrial production space and creating employment for millions of job seekers, especially Nigerian youth. For example, the petroleum industry that has dominated Nigeria’s external trade since the 1970s failed to provide employment opportunities for the people, given the technical knowhow required in the industry and so has not been helpful in solving the problem of youth unemployment. What is required (and which is now being considered) is to open up the petroleum downstream industries and train young people to provide services that are required at this level—activities such as welding, pipeline maintenance, security and other services.

Alas, these public policy programs have had a mixed impact on youth unemployment. While a number of intervention programs did address critical needs, others failed to address the needs of youth as a specific group. The management and administrative oversight of the programs has been weak and sometimes problematic, perhaps because of multiple authorities (federal, state and local government agencies) managing the programs. Some have been known to expend more money than is necessary or at least failed to justify the amount of public money devoted to such programs.

Note : Tunji Akande is a professor of agricultural economics at the Nigerian Institute of Social and Economic Research (NISER). NISER is one of the Brookings Africa Growth Initiative’s six local think tank partners based in Africa. The piece is based on NISER (2013) as acknowledged under the references. This blog reflects the views of the author only and does not reflect the views of the Africa Growth Initiative.

Asaju, K, S. Arome and S. Anyio (2014): The rising rate of unemployment in Nigeria the Socio-economic and political implications, Global Business and Economic Research Journal, 3(2): 12-32. Available online at http:www.journal.globejournal.org

Falusi, A. O. (2014): Employment Generation for Poverty Reduction in Nigeria: Issues for Consideration. Presented at the 21 st Celebration of the Development Policy Centre in memory of Professor Ojetunji Aboyade, 9 th September.

Iwayemi, Akin (2013): Youth unemployment in Nigeria – Challenges and Way Forward. Paper presented at the World Bank Regional Workshop on Youth. Abuja. July 23-24.

National Planning Commission, NPC (2013): Mid-Term Report of the Transformation Agenda, May 2011 – May 2013: Taking Stock, Moving Forward. Abuja.

National Population Commission, NPoC (2013): Nigeria’s unemployment rate rises to 23.9% —NPC, Punch Newspaper, October 13, 2013

NISER (2004): Nigeria Urban Youth Employment and Empowerment Project (NUYEEP) – Youth Background Study, in collaboration with the World Bank

NISER (2013): Analysis and Design of Safety Nets and Capacity Empowerment Program for unemployed Youth in Nigeria

World Bank (2003): Youth Employment Policy in Developing and Transition Countries – prevention as well as Cure . Washington, DC: World Bank.

World Bank (2008): Youth Employment in Africa. Africa Development Indicators 2008/9. Washington, DC: World Bank.

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Youth Unemployment in Nigeria: Exploring Challenges and Solutions

Nigeria, often hailed as the “Giant of Africa,” has a large human capital and youth population. However, youth unemployment is a pressing issue, with its rate increasing annually.

A recent news article published by the National Bureau of Statistics in 2023 using a new method stated that Nigeria’s unemployment rate is currently at 4.1%. This points to the fact that many youths are unemployed in the country. 

There is a need to tackle the challenges of Youth unemployment in Nigeria and provide solutions. To do this, we need to understand youth unemployment’s problems, causes, and effects. 

This article delves into the problems of youth unemployment and how to provide solutions to solve the problems.

Table of Contents

Causes of Youth Unemployment in Nigeria

The unemployment of youths in Nigeria is as a result of so many factors, which includes the following;

Educational system

The educational system emphasises theory over practical skills. The system is not built or designed to train individuals who can take on jobs in practical ways. The frequent strikes by universities delay students in completing their education. When graduates finish school, they exceed the age range of entry-level roles. 

This poor educational system has forced many youths to study in foreign countries. These foreign countries teach practical skills that apply to jobs. These youths then increase the GDP of other countries while Nigeria’s GDP dwindles. 

Skills mismatch

The job demand in the world is different from the skills some youths have. This is referred to as ‘skill mismatch’. The educational system also contributes to this. Industry-ready individuals must gain practical skills matching companies’ job roles and descriptions. 

Read also: Top 10 Budding Skills for Backend Developers in 2023.  

Government policies

Policies implemented by government leaders have affected companies and industries. The rise in fuel prices and the exchange rate policies are part of these policies. Some international companies have moved out of Nigeria due to policies implemented that threatened their growth. These companies that left have resulted in job losses. 

Also, some other companies had to cut costs, letting some employees go. Job security requires implementing good government policies that support the growth of companies, industries, businesses, and individuals. 

Large population

Nigeria has a rapid population growth with less concern for job creation. This implies that there are births every day, but there needs to be a structure to ensure jobs for the population. Nigeria’s population grows annually at 2.6% and based on this, many graduates enter the labour market with no jobs.

Constraints on infrastructure 

Infrastructure development is overlooked in Nigeria. There needs to be more emphasis on developing structures such as electricity, housing, roads, water supply, health, oil and gas.

One major infrastructure issue that affects young people working is electricity. Lack of access to electricity inhibits many young people from getting jobs or even engaging in freelancing. There is a significant loophole in the health sector- many sick people travel out of the country to access treatment for severe illnesses.

Preference for white-collar jobs

There seems to be a preference for white-collar jobs among many youths. This has increased competition and made jobs unavailable for youths. The traditional and hand-work jobs are abandoned. White-collar jobs are great, no doubt, but traditional jobs needed by the mass market are not paid attention to.

Read also: Types of Jobs in Nigeria: A Breakdown for Better Career Decisions.  

Corruption is a rotten egg that has eaten deep into the political system worldwide. Corruption is caused by selfishness by those in government. Corruption is a criminal act and a form of dishonesty. It has led to job losses, lack of job creation, theft of public funds, and a lack of growth in the country. 

Effects of Youth Unemployment in Nigeria

Youth unemployment causes poverty. Nigeria is one of the poorest nations in the world. Poverty has caused death, theft, and kidnapping among youths. Poverty is said to be one of the causes of insecurity in Nigeria. Increasing the rate of youth employment in Nigeria will reduce poverty. 

Read also: Can the Green Economy Alleviate Poverty in Nigeria?

A lack of jobs causes a lack of basic resources. Many youths cannot feed themselves or have shelter over their heads because of unemployment. This has caused hunger, living under bridges, in slums, and dangerous places. Youths have died due to starvation, lack of shelter, and poverty. 

Depression and suicide

Many youths struggle to sponsor themselves to school for their education. It is disheartening that youths cannot get good jobs after school to care for their basic needs, grow, expand, and build their dreams. The popular saying an idle man is the devil’s workshop then comes into play. Graduates stay at home depressed and consider suicide.  

Shortage of talented individuals 

The increase in youth unemployment has caused talented individuals in Nigeria to leave the country. This is popularly known as “ Japa” . Youths from different industries, technology, healthcare, IT, and education, leave the country based on the lack of job security.

Many of these young people who go are skilled and talented but lack jobs and well-paying jobs to ensure they grow. Thus, they exit the country with no intention of returning or giving back to the country. This leaves the country with a shortage of talented individuals. 

Read also: Factors to Consider Before Travelling Out of Nigeria ( Japa ).

Increase in drop-outs

The poor education system, strikes by the university body (ASUU), and poverty have led to students dropping out. Young people need more funds to complete their education, and the education system is getting expensive. 

Political instability 

Another challenge of youth employment is political instability. Changes in government, both in the local and governorship sectors, affects the country’s growth. This challenge needs to be addressed while implementing youth employment solutions.

Solutions to Youth Employment in Nigeria

The challenges of youth unemployment in Nigeria can be solved in the following ways;

Education reform

There is a need for education reform. Education reform will require prioritising education and ensuring the education sector prepares students for the labour market. The education sector needs attention and an end to all strikes that prolong the schooling system of students in Nigeria. 

The governing body, ASUU, has had a continuous indefinite strike for years. This strike disrupts many students’ education. A four-year course turns into six years. Infrastructural facilities need to be provided in secondary schools and universities. 

There is also a need for a shift in curriculum. Many of the topics and courses taught are outdated. The school curriculum needs to be updated with how the world is evolving.

Practical skills and knowledge need to be taught in secondary and tertiary institutions. Training youths to have practical skills from primary and secondary up to university or polytechnic level is essential. Training institutes will help to create Industry-ready youths.

Read also: Informal Education in Nigeria: An Overview. 

Job Creation

Creating more jobs will greatly influence youth employment in Nigeria. Job creation will alleviate poverty, improve the economy, and enhance the country’s growth. Job creation is not solely the responsibility of the government. Creating jobs can also be done by the private sector; it is not limited to the public sector.

The public and private sectors should create jobs in every industry, including health, manufacturing, technology, commerce, etc. Creation of startups, entrepreneurship, infrastructure development, education, tourism, skills, and training will all contribute to the career growth of youths in Nigeria. 

Good leadership

Seth Godin said, “Leadership is the art of giving people a platform for spreading ideas that work.” One significant youth employment solution is having excellent and efficient leaders. Good governance with critical thinking, problem-solving, and consideration for the masses will enhance the country’s economy. 

This will, in turn, boost the employment status of individuals. Good leaders in local councils, state houses, House of Assembly, House of Senate and governors who implement policies that positively influence the country will lead to growth.

The emphasis on electing good leaders should not only be on the president. It should also include leaders in the local councils. 

Entrepreneurship

Entrepreneurship can boost youth employment by creating jobs, innovation, and alleviating poverty. Entrepreneurship is the process of creating a business to generate profit. People can be employed in the business with their job roles. As the business expands, the employment rate increases. These people will take on the jobs to face the company’s increasing demand.

Entrepreneurship applies to small businesses, startups, large-scale businesses, and social enterprises. In schools, entrepreneurship education can be taught. Entrepreneurship education will expand the mindset to create jobs in students’ minds. 

Entrepreneurship can be applied to diverse businesses and industries. It can apply to fashion designing, computer training, electrical work, agriculture, furniture making, etc. An essential aspect of entrepreneurship is building a business to solve the problems. 

Read also: Top 5 Books on Entrepreneurship You Need to Read. 

Skills development  

Skills development plays a crucial role in solving youth employment. Developing skills usable in the labour market can boost economic growth and development. For example, in the IT sector, youths can learn data analysis. Data analysis is an IT skill that can be applied in any industry.

Business intelligence is required in any business. Building and construction are skills needed in the building sector. Youths taking up skills in the health care, manufacturing, construction, and information technology sectors will bridge the unemployment gap in Nigeria. 

Having and showcasing abilities on social media has earned many youths jobs and brand ambassador roles in companies in Nigeria and abroad. The importance of skill development must be addressed in youth employment. 

Would you love to develop and hone the skill of writing? If yes, join our WhatsApp community. 

Infrastructure development 

The Infrastructure consists of roads, electricity, airports, water supply, telecommunications, oil and gas. Infrastructure development in these sectors is crucial to youth development. Developing infrastructures and increasing access to electricity and good roads will lead to job creation, tourism, and skills development.

Agriculture can boost economic growth by planting and exporting our local foods. Building and developing refineries for our natural crude oil will help us produce our oil, export, and get more value for our product. 

Public and private partnerships 

Public and Private partnerships will enhance job opportunities, create entrepreneurship programs, and increase skill development. Public and private partnerships are the collaboration between government agencies and private companies. This collaboration will boost investments by local and foreign countries. 

Read also: Partnership in Business: What Every Nigerian Entrepreneur Should Know.

Implementation of policies

Effective implementation of policies by political leaders will ensure the stability of youth employment in Nigeria. The government requires commitment and funding for these policies. 

Innovation will boost youth employment and the economy. One result of youth employment is that youths will become innovative and invest in the country. Innovation involves creating and developing new solutions to problems. It can be by creating new technologies or using skills to work more creatively.

Gymnastics, football, tennis, basketball, sprint, and boxing are popular sports that have employed youths. The amount of money sports celebrities earn is very high. They can travel out of the country and compete with foreigners. These competitions earn them labels and contracts with clubs and countries. 

Nigerian footballers like Victor Osimhen, Ighalo, and Alex Iwobi made football a career and have become successful. Nigeria’s boxing star, Anthony Joshua, has made boxing a career and profession.

Youths should be encouraged to go into sports of their choice. Good infrastructure and systems made by private and public clubs for sports will contribute immensely to sports development. 

Other solutions to unemployment are encouraging foreign investors, controlling the population, providing affordable housing, access to healthcare and job training. 

Vocational skills that are highly sought after, like plumbing, carpentry, hairdressing, fashion designing, computer literacy and programming, are valuable in the labour market. Internship and apprenticeship opportunities will also increase youth employment in Nigeria.

Conclusion 

Tackling youth unemployment in Nigeria requires a combined effort from the masses and the government. Nigerian youth can fight unemployment by implementing skills development, innovation, entrepreneurship, education reform, and job creation.

The collaborative effort between the government and its people will enhance employment. Despite the challenges, Nigerian youths can have a bright future and achieve their dreams and goals. 

Oluwanifemi Akintomide edited this article.

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Youth unemployment in Nigeria: nature, causes and solutions

• Published: 28 April 2022
• Volume 57 , pages 1125–1157, ( 2023 )

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• Olusanya E. Olubusoye   ORCID: orcid.org/0000-0001-8672-7822 1 , 2 ,
• Afees A. Salisu 2 &
• Sam O. Olofin 2  

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This study investigates the nature and causes of youth unemployment in Nigeria, with the aim of proffering evidence-based workable solutions as policy recommendation. Its contribution to the literature on youth unemployment is the joint examination of the nature and causes of youth unemployment, which gives a holistic view and provides sufficient background for designing holistic solutions to the problem of youth unemployment in Nigeria. The study employs a Vector Autoregressive (VAR) model. This describes the spillovers of youth employment among different sectors (Agriculture, Industry and Services) in Nigeria; thus, explains whether the nature of youth unemployment in Nigeria is frictional or not. The study also adopts Panel Autoregressive Distributed (PARDL) model to analyze the short-run and long-run significance of the determinants of youth unemployment, such output level, macroeconomic uncertainties and labour market flexibility. This helps to determine the main causes of youth unemployment in Nigeria and whether the youth unemployment is cyclical or structural in nature. The results suggest that the nature of youth unemployment in Nigeria is non-cyclical, partly frictional, but largely structural. This may explain why youth unemployment is increasing in Nigeria despite government remedial efforts; as government focused on frictional youth unemployment remedial policies and dispelled the potential of youth unemployment being structural in nature. The recommended solutions are fiscal and monetary policy easing and demand-side subsidy programme to dealing with structural youth unemployment. The study also shows the need to enforce relevant extant labour laws and regulations to stem the tide of youth unemployment and underemployment in Nigeria.

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Data availability

The data that support the findings of this study are openly available in the Central Bank on Nigeria (CBN) database at http://statistics.cbn.gov.ng/cbn-onlinestats/DataBrowser.aspx ; Fred Louis data base https://fred.stlouisfed.org/searchresults?st=Nigeria+Real+Exchange+Rate ; World Bank database at https://databank.worldbank.org/source/world-development-indicators and Fraser Institute at https://www.fraserinstitute.org/economic-freedom/dataset?geozone=world&page=dataset&min-year=2&max-year=0&filter=0

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Acknowledgements

Comments from the Editor and three anonymous reviewers are gratefully acknowledged. The authors also acknowledge the intellectual contributions of Tirimisiyu F. Oloko, Ahamuefula E. Ogbonna, Idris A. Adediran and Kazeem O. Isah.

The authors wish to acknowledge the research support received from the Tertiary Education Trust Fund (TETFund) of the Nigerian Government, under the Research Fund (RF) Project (2019).

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Olubusoye, O.E., Salisu, A.A. & Olofin, S.O. Youth unemployment in Nigeria: nature, causes and solutions. Qual Quant 57 , 1125–1157 (2023). https://doi.org/10.1007/s11135-022-01388-8

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Youth Unemployment in Nigeria

There are more than 80 million young people struggling with unemployment, out of a total youth population of 151 million. This statistic not only reveals the scale of the issue, but also positions Nigeria as having one of the highest rates of youth unemployment globally. The high level of unemployment presents challenges for the country, as it leads to social instability, economic stagnation and threatens national security.

Large Population

One reason for the youth unemployment in Nigeria is the country’s large population. This means that there are more people looking for work than there are available job opportunities, resulting in a high unemployment rate.

Additionally, Nigeria’s economy has fallen into recession in recent years, making it difficult for companies to create new jobs. The recession has forced many businesses to reduce their workforce, making it even more challenging for people to find jobs, according to Legit. The combination of a large population and a struggling economy has led to high levels of unemployment in Nigeria.

The Lack of Quality Education

The lack of education and training in Nigeria is a significant factor in the high rate of youth unemployment in the country. With more than 10.5 million children out of school, Nigeria has the highest rate of out-of-school children in the world. This not only affects the current education of children but also their future employment opportunities.

The education crisis disproportionately affects certain marginalized groups such as “girls, children with disabilities, those from the poorest households, those in street situations and children in geographically distant areas,” according to UNICEF.

Furthermore, a large percentage of children who attend primary school do not continue on to attend secondary school, leading to a significant portion of Nigerian children not receiving a complete education. UNICEF reports that 50% of Nigerian children did not attend secondary school in 2021, highlighting the continued challenges in providing quality education for all children in the country.

Government Corruption

Government corruption in Nigeria is a systemic issue that has plagued the country for decades. Corruption practices within the government have had far-reaching consequences, with youth unemployment being one of the most significant outcomes. One of the ways in which this contributes to youth unemployment in Nigeria is through the mismanagement of public funds, resulting in the lack of investment in youth development, which has a direct impact on the unemployment rate among young Nigerians.

Furthermore, nepotism often dictates who gets hired for available positions, with connections and bribes playing a more significant role than qualifications and merit. This unfair system not only perpetuates inequality but also limits the opportunities for talented and motivated youth to enter the workforce and contribute to the country’s economic growth. Overall, the prevalence of government corruption in Nigeria has created a vicious cycle where young people are unable to access quality education, training and employment opportunities, leading to high levels of youth unemployment.

Nigerian Youth Employment Action Plan

The federal government launched the Nigerian Youth Employment Action Plan (NIYEAP), a strategy that aims to address the issue of youth unemployment in the country. The plan aims to provide job opportunities for young Nigerians through various initiatives such as skills training, entrepreneurship programs and public works projects.

The goal of NIYEAP is to reduce the high levels of youth unemployment in Nigeria and harness the potential of the country’s young population to drive economic growth and development. The plan also aims to address the social and economic challenges faced by young people, such as poverty, lack of access to education and training and limited opportunities for meaningful employment. By focusing on creating sustainable employment opportunities for young Nigerians, NIYEAP seeks to empower them to become active participants in the country’s economic and social development.

Nigerian Learning Passport

The Nigerian Learning Passport (NLP) is another initiative launched by the Nigerian government and UNICEF in 2022. This program focuses on providing Nigerian citizens with access to quality education and certifications through a digital platform. The platform offers a wide range of online courses from various institutions, allowing individuals to enhance their skills and knowledge in different fields.

By earning certifications through the NLP, users can showcase their expertise to potential employers and advance their careers. This platform serves as a valuable resource for lifelong learning and continuous education in Nigeria. UNICEF hopes to provide continuous education to 12 million learners by 2025.

As the youth population continues to grow in Nigeria, addressing youth unemployment must remain a top priority for policymakers. Failure to take decisive action risks undermining the country’s economic development and social stability and denying young people the opportunity to fulfill their potential and contribute positively to society.

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Unemployment in Nigeria: Policy Review and Recommendations

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One of the major means of survival in Nigeria (picture by Joshua Oluwagbemiga)

This paper, published in March 2021, is an outcome of an online workshop that was organized by Rethinking The Uploaders (RETU) as part of the project " Solving the Major Economic Problem in Nigeria" (SMEPN), on the topic Unemployment: Policy Review and Recommendations . It explores the various unemployment policies introduced by the Nigerian Government and analyzes how effective they are and suggests some practicable solutions to solving unemployment problems in the country. The project is an output of the Global Pluralist Economics Training (GPET). Do you want to take part in the next one, learn about pluralist economics and also learn how to host your own events? Find more information on Summer Academy for Pluralist Economics here .

UNEMPLOYMENT IN NIGERIA: POLICY REVIEW AND RECOMMENDATION

Author: Abdulkhalid Anda Salihu

Conceptual Clarification

According to the World Bank, unemployment refers to the share of the labor force that is without work but is available and seeking employment. The definition varies based on countries' dynamics and metrics for measurement but generally, the International Labor Organization definition is used. In Nigeria, the Nigeria Bureau of statistics categorizes an unemployed person as one who is part of the labor force who do not work for up to 40 hours per week within the reference week (the preceding week before measurement), another important concept is underemployment which in Nigeria refers to any individual who works for only 20-29 hours per week within the reference week. Unemployment differs in form as it could be structural;  which implies a mismatch between what employers require and what potential employees possess in terms of skill set and education. On the other hand, unemployment can be frictional (that contributes to the natural rate of unemployment) which is the time lag between leaving a job and getting another while cyclical unemployment is driven by fluctuation in the business cycle.

Current State of Unemployment in Nigeria

Nigeria's population is estimated by the UN population department at 200 million people in 2020 which is dominated by youth within the age bracket of 15-34 years, indicating a young population. Nigeria Bureau of Statistics (NBS) second-quarter 2020 reports highlighted the unemployment rate at 27.1% up from the 23.1% recorded in Q3, 2018. With a labor force of about 80 million persons (11.3% lower in Q3'18), the largest portion 29.1% or 23,328,460 falls within the age bracket of 25-34. This means that young people are faced with the challenge of getting full-time employment hence either remain idle otherwise settle with menial, part-time, voluntary jobs which are of course regarded as either unemployment or underemployment based on the bureau benchmark.  Although it is important to note that underemployment showed a gradual decline implying that the economy is actually creating employment but largely in the informal sector where the hours worked are not up to the benchmark for full employment but underemployment which is between 20-29 hour/weeks.  The majority of jobs are created in the informal sector at 54%, the private formal sector accounted for 37%, and the 9% left were generated by the public sector all in 2013 (World Bank 2014).

It seems to be like a paradox that a country blessed with an abundance of crude oil, precious and base metals, fertile lands, favorable weather condition, a young population yet still battles with GDP growth, bags the poverty capital of the world, ranks low in the doing business index which stifles foreign and domestic portfolio and foreign direct investment and of course results in insecurity, banditry, and terrorism we see today.

Some Causes of Unemployment Include

There are various reasons for the persistent rise of unemployment/underemployment in the country. Some of which is due to the structure of the economy and the other due to “not so effective” reforms, policies, and strategies to tackle the problem. Andrew Nelvin, partner and chief economist at Price Water Coopers (PWC), highlighted the country's dependency on crude oil proceeds which restrict diversification, hence shut out employment opportunities in other yielding sectors. Also, the oil sector is industrialized thereby requiring less workforce compared to other sectors. Other reasons include population growth particularly the labor force (15-64 years) compared to low jobs created.  The recent outbreak of coronavirus also contributed to job losses through the cut of global supply chains, the collapse of oil prices which dampened our foreign reserves led to exchange rates hike for a country that is import-dependent for consumables and raw materials making it difficult for firms to meet up, as a result, lay off workers. The deficient school curriculum is another reason; given the continuous changing environment in terms of industrial changes, advancement in technology, corporate technical skills, etc. which have created a skills gap, in other words, a mismatch between the supply side of labor (what employers require) and the demand side of labor (what potential employee possess) in terms of know-how and skill set.  Not forgetting the lack of industries in the country to absorb qualified graduates. Most important to note is that lack of industries is among other reasons due to lack of sufficient infrastructure investment in Nigeria.

Historical Reforms to Curtail Wide Spread of Unemployment

Several reforms, policies, and strategies have been put in place to address the problem of unemployment of which some were focused solely to tackle the problem head-on, a couple of them were indirect through poverty alleviation programs, and others were infused into national development plans. Some of the recent programs include Subsidy Reinvestment Program (SURE P), which was introduced in 2012 towards reinvesting savings accrued from fuel subsidy on critical infrastructure projects and social safety programs. The major objective of this program was to employ graduates through internship programs to reduce social vulnerability. Later in 2013 another initiative called University Entrepreneurship Development Programs (UNEDEP) to tackle graduate unemployment.  It was initiated by the Ministry of Trade and Investment aimed at promoting self-employment among youth before their graduation from higher institutions of learning. Youth Enterprise with Innovation in Nigeria (YOU WIN), initiated in 2011, structured to finance outstanding business plans for young aspiring entrepreneurs in Nigeria. And then, the National Social Investment Program (NSIP) in 2017 is infused in the National Economic Recovery and Growth Plan (ERGP) and the recent trader money and N-power initiative. Despite these reforms, we still witness growing unemployment and underemployment in the country to which I blame largely to lack of a technical framework to achieve these reforms and secondly lack of continuity.

Proposed Solution

Investment in Human Infrastructure in Line with Science Technology Engineering and Mathematics (STEM).   

A critical factor of every economy is the quality of its human capital. If well utilized it will accrue lots of prosperity for the country. Luckily, Nigeria does not only have a large population (Largest in Africa, 7th in the world) but a young population with a median age of 18. Since Science, Technology, Engineering, and Mathematics are drivers of innovation and digitization evidence from the Asian Tigers, If reforms are put in place to foster entrepreneurship within the framework of STEM channeled through the improvement of the educational sector, organizing STEM incubator programs, fellowships, and even scholarships, will help educate, equip and improve the quality of the labor force utilize. It's not enough to train the youth on STEM but further how it can be used to build wealth.

Unlocking the Potentials of the Informal Sector                            

Historically in Nigeria, the informal sector contributes about 41% to GDP and employs 68% of the labor force according to PWC Nigeria. Also, the NBS labor force report highlights a decline in unemployment for an individual with no formal education (22% in 2010, 18% in 2020). This is reflective that if the informal sector (SMEs) have improved access to funding, ease in doing business, not forgetting the role of competition in enhancing efficiency in the market, will thrive and create more jobs. On this basis I recommend reforms that will ensure ease in access to start-up and growth funding, ease in doing business reforms, a system to help mitigate risks these businesses may encounter, also providing non-contributory social safety net programs will help.

Role of the Private Sector                               

Of course, the government can't do it all, in developed nations, the private sector is the driver of employment. Private sector participation is very paramount if the problem of unemployment needs to be addressed. I'll borrow the ideology of Efosa Ojomo and Rich Alton in their paper "Avoiding The Prosperity Paradox". They proposed that developing economies can only grow, create jobs and reduce poverty by fostering prosperity through market-creating innovation by entrepreneurs as they create a market for non-consumers (individuals who cannot afford standard products or services for whom there always exists underlying demand).  If entrepreneurs can break complex (big) products and services into affordable bits to create demand for non-consumers, this will spring up aggregate demand, firms earn more and can employ more hands.

The core role of the government

Economic theory suggests that businesses cannot thrive in an environment with poor infrastructure hence the need for economic, social, and institutional infrastructure in terms of power, good transportation networks, information technology, and strong legal frameworks. Research suggests that favorable infrastructure investment with either deficit or non-deficit financing has the potential to create jobs, directly and indirectly. In response to the current revenue shortage in Nigeria to fund infrastructure projects, the Government can adopt other sources of financing like a public-private partnership, blended finance; a mix of multilateral development institutions, and public sector financing which will then crowd-in private sector financing.  As well as improve domestic resource mobilization.

All in all, as interesting as these policies, reforms, strategies, and frameworks may seem they are susceptible to poor implementation, therefore the need for sustainability, and sincere commitment from all stakeholders towards a better nation for all.

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The World Bank, https://databank.worldbank.org/metadataglossary/world-development-indicators/series

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United Nation Population Division, Worldmeter, https://www.un.org/en/development/desa/populaiton/publications/datatabase/index.asp, https://www.worldmeters.info/world-population/nigeria-population

Rethinking Economics The Uploaders (RETU) webinar on Solving the Major Economic Problem in Nigeria, https://www.retheuploaders.org/programs/SMEPN

Go to: Unemployment in Nigeria: Policy Review and Recommendations

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Youth, Unemployment and National Security in Nigeria

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Afolabi Oluwaseun

Unemployment has been a major problem in most countries in the world. Nigeria, as a developing country is witnessing high rate of youth unemployment which has become one of the major threats to its national security. The study examines the types and causes of youth unemployment in Nigeria, its effects on national security and ways to tackle unemployment as a means to improve the level of national security. Also, a statistical rate of youth unemployment by states in Nigeria from 2004-2008 was analysed. The findings showed that one of the major reasons for unemployment is that the growth of education has far outstripped the growth of the economy in which the supply of jobs cannot meet the demand of the graduates moving out of the tertiary institution. The study concludes that youth unemployment is a menace in the country that deserves governmental and societal solicitude.

IOSR Journals

Unemployment is a global social phenomenon and a concern for governance as high rate of unemployment in an economy retards rate of growth and national development. Globally an estimated 201.8 million people were reported as jobless and youth constitute the biggest casualties, with 74.5 million aged 15-24 unemployed in 2013. Youth unemployment rate in 2013 for East Asia; Middle East and North Africa; and Sub-Saharan Africa were 10.1; 28.3 and 11.9 compared to adult rate of 3.6; 7.9 and 6.0 respectively. In Nigeria, unemployment rate has worsened over the years due to weak economy and more than 60 per cent of youth are unemployed. This paper highlights the implications for national security and development using secondary materials. The finding is that as the pillar for national security and development, unemployed youth energies are challenged towards negative ventures like perpetration ofviolent conflicts and criminal activities. 90-95 per cent of violent conflicts are perpetrated by unemployed youths and more than 300 forms occurred between 1999 and 2014, making the polity an insecure environment scaring away investors and deterring development. The conclusion is that the potentials of the over 200000 youths that graduate annually from tertiary institutions are not harnessed for national security and development. We recommend the urgent mobilisation of all sectors and political commitment to address youth unemployment as an endemic disease devouring human potentials, national security and development.

Journal of Social, Political, and Economic Studies

Caleb Ayuba

IntroductionThe challenges currently confronting the Nigerian state transcend the previously simple case of boundary disputes and communal clashes to become something much more complex like armed insurrection. Insecurity posed by different forms of insurgency is now the most conspicuous feature of the country. Besides wreaking all sorts of havoc on the country and its population, insurgency has attached to the Nigerian state the labels 'dysfunctional state', 'weak state' and 'failed state'. The murderous activities of Boko Haram, an Islamist terrorist group, have particularly constituted a serious threat to the security of the country, as well as its existence as a legitimate entity. There is no denying that the spate of insurgency that permeates post-military Nigeria is traceable partly to the air of freedom enjoyed by the citizens. However, as shall be demonstrated in relation to the reign of terror orchestrated by the dreaded Boko Haram in the north and th...

Journal of Economics and Sustainable Development

yelwa mohammed

lawrence okwuosa

This article explores unemployment among the youths in Nigeria and its impact on peace and stability in the country. It draws data from National Bureau of statistics documents, books, journal articles, and other scholarly works. These were analyzed in order to re-evaluate the implication of unemployment among the youths in Nigeria and proffer solutions to the predicament. Findings revealed that the unemployment rate among the youths in Nigeria is high and worrisome despite the rich natural recourses in the country. It further indicates that youth unemployment is associated with high rate of violence and criminality in the country which have continued to jeopardize the peace and security of the nation. To reverse the trend of youth unemployment and ensure peace and security in Nigeria, the research suggests that the Nigerian government should set up more skill acquisition centres through effective entrepreneurship development, revitalize ailing industries, encourage agriculture, and ...

International Journal of Recent Technology and Engineering

Galadima Gladstone wayas

The increasing social vices in Nigeria such as kidnapping, armed robbery, political thuggery and terrorism are indicators of a national doom. Kidnappings are done for ransom from the victims, while armed robbery, political thuggery, and terrorism are engaged for financial gains and selfish interest. These criminal activities negatively affect the peace, security, and development of the nation. This study examines the relationship between youth unemployment and Boko Haram terrorism in Nigeria. This study relies on secondary data and adopted the frustration-aggression theory as its theoretical framework. The study revealed that high rate of youth unemployment in northeast Nigeria has provided foot soldiers for the Boko Haram elites. More so, available data show youth unemployment rate in Nigeria is so high, and these criminal engagements are attributed to it. As a way forward, the study recommends amongst others that, the Nigerian government should identify the causes of youth unemplo...

jsd-africa.com

Nmonye Florence

Gst Bagus Arya

Luciana Dode

About 30% of the irrigated rice cultivated area in Rio Grande do Sul state presents high red rice infestation, making it difficult for rice growing. The main difficulty to the control of red rice with herbicides is the fact it belongs to the same genus (Oryza) of cultivated rice. Therefore there are not selective herbicides to control this weed. The development of modern biotechnology, including genetic engineering allowed the release of glufosinate resistant transformed germplasm with acceptable agronomic attributes. However, the environmental monitoring and studies on gene flow are important, aiming adequate management in the field, in order to maximize effects of this technology, prolonging its use and minimizing any environmental impact. Thus, the present study has the aim to determine a methodology to identify transgenic rice seeds resistant to glufosinate, so to evaluate gene flow and, crop management, which are useful date to address and environmental impacts issues. It was u...

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