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Analysis of the Causes and Effects of Unemployment in Nigeria towards a Solution for Graduate Idleness and Poverty Alleviation

• Ibikunle , GaniyuAbiona , +3 authors A. Benjamin
• Published 2019

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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.

National Bureau of Statistics, "Labor force statistics: Unemployment and underemployment report," Q2 2020

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Efosa Ojomo and Rich Alton, "Avoiding The Prosperity Paradox," July 2020

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Mike I. Obadan & Ayodele F. Odusola, "Productivity and Unemployment in Nigeria".

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 in Nigeria: nature, causes and solutions

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

Cite this article

• 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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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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Accepted : 23 March 2022

Published : 28 April 2022

Issue Date : April 2023

DOI : https://doi.org/10.1007/s11135-022-01388-8

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Unemployment in Nigeria 2022: causes, effects and solutions

Unemployment is one of the most severe social problems facing Nigeria today. It affects all members of society, from the young to the old, and has far-reaching consequences for the economy and national security. In this article, we will look at the effects of unemployment in Nigeria, its causes and some possible solutions to the problem.

Unemployment occurs when people who can work cannot find a suitable paid job for a tangible period of time. The population that falls within this gap are majorly the youth. Unfortunately, the government's efforts over the years seem to yield no fruits since the situation continues to deteriorate.

What are the problems of unemployment in Nigeria?

The country has an unemployment rate of about 33%, which means that about one in four Nigerians is unemployed. That is a very high unemployment rate, which means that many people in the country cannot find work. So why the high unemployment rate in Nigeria?

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• One reason is that the country has a large population. With a population record of as high as over 200 million, Nigeria remains the most populous country in Africa. This large population means that more people are looking for work than the available ones.
• Another reason unemployment is high in Nigeria is that the economy is not doing well. Nigeria's economy has been in a recession for the past few years, making it difficult for businesses to create new jobs . The recession has also made it difficult for people to find work because many businesses have had to reduce their workforce.

Causes and effects of unemployment in Nigeria

Runaway unemployment is a cause for concern in Nigeria. It is not only a drag on the economy but also a social problem. There are many factors responsible for unemployment in Nigeria, and some of them include:

• The high population growth rate in Nigeria: The population is growing faster than the economy, so there are not enough jobs.
• The lack of quality education and training: Many Nigerian youths are not adequately educated or trained for the available jobs.
• The corruption and red tape in the Nigerian government: The problem makes it difficult for businesses to operate and creates an environment that is not conducive to job creation.
• The high cost of living: The high cost of living makes it difficult for people to afford basic necessities, let alone save enough money to start their businesses.
• The insecurity in Nigeria: The insecurity in Nigeria makes it difficult for businesses to operate and also makes it unsafe for people to go out and look for jobs.

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These are just some of the causes of unemployment in Nigeria. Many other factors contribute to this problem.

Consequences of unemployment in Nigeria

With over 33% unemployment rate, the country records one of the highest unemployment rates in the world . That has led to many social problems, such as:

• Political instability

Unemployment has also affected the economy. Nigeria's GDP has been declining for the past few years due to the high unemployment rate. The country's debt has also been increasing, as the government has had to borrow money to fund social programs.

The high unemployment rate has also led to a brain drain, as many Nigerians have left the country searching for opportunities elsewhere. That has further exacerbated the country's economic problems.

Unemployment and crime

The unemployment crisis in Nigeria has led to a situation where many Nigerians turn to crime in order to make ends meet. Below are ways in which unemployment can lead to crime.

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• Unemployed individuals may turn to crime as a way to make money . That is often seen in cases of theft and robbery and in more sophisticated crimes such as fraud and embezzlement.
• Unemployment can lead to crime as a way to vent frustration and anger. Many unemployed individuals feel they have been dealt a raw deal in life and may lash out at society by engaging in criminal activity.
• It can also lead to crime as a way to gain status and respect. Many young people, in particular, feel they have nothing to lose by engaging in crime and treat it as a way to earn respect from their peers.

Unemployment and poverty

The huge unemployment problem has led Nigerian society to high levels of poverty. Unemployment causes poverty because when people are unemployed, they do not have any money coming in.

This means they cannot afford to buy food, rent, or even transportation. As a result, they find themselves living in poverty. Unemployment can also lead to mental and physical health problems, worsening poverty.

Nigeria ranks 4th among world's top 10 countries with highest youth unemployment

The most appropriate way to discontinue the cycle of poverty is to create jobs. When more Nigerians are employed, they will have money to spend, boosting the economy.

Unemployment and political instability

One of the most damaging effects of unemployment is political instability. Large numbers of people out of work can lead to social unrest and, in extreme cases, revolution. Nigeria is a prime example of how unemployment can lead to political instability.

Coups and uprisings have plagued the country for decades, most of which can be traced back to high unemployment rates. It only takes a slight provocation to escalate political instability in a country like Nigeria, where the young population is unemployed and frustrated.

The most recent example is the protests that rocked the country in 2020 because of the proposed hike in fuel prices. The protests quickly turned into a nationwide movement against the government. The protesters' drive was anger because of the country's high unemployment and poverty, hence the demand for change.

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Solutions to unemployment in Nigeria

Even amid the deteriorating unemployment problem in Nigeria, it is not all lost. However, by putting in relentless efforts, the government can turn around the situation even though gradually.

What steps should the government take to reduce unemployment?

Some of the solutions that the government can focus on to help solve the unemployment crisis are:

• Raise the retirement age: One possible solution to unemployment in Nigeria is to raise the retirement age. That would see a higher number of people remaining in the workforce longer and hence alleviating the clog in the social security system.
• Encourage entrepreneurship: The government can reduce taxes and regulations on businesses, provide entrepreneurs training and support, and improve financing access.
• Invest in education and training: Investing in education can help improve the workforce's skills and make them more competitive in the global economy.
• Improve infrastructure: The government can achieve this by prioritizing public transportation, telecommunications, and energy investment.
• Promote economic growth: The government can do this by deregulation, tax reform, and improving the business environment.

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What are the effects of youth unemployment in Nigeria?

Youth unemployment has terrible psychological and financial effects on both the individual and society as a whole. Youth unemployment in Nigeria has a number of negative consequences, including a rise in militancy, violent crimes, kidnappings, restlessness, and socially irresponsible behaviour.

What are the main causes of unemployment in Nigeria?

Corruption, neglect of agricultural and other natural resources, poor quality education , a lack of working skills, overpopulation, inflation, and a decrease in economic value are the key reasons for unemployment in Nigeria.

What are the solutions to unemployment in Nigeria?

Some remedies to unemployment include reforming the country's educational system, developing infrastructure, empowering youngsters to work for themselves, and making resources more freely available.

How does unemployment increase the poverty rate?

When people are unemployed, they may be unable to afford to pay for their basic needs. That can lead to them becoming homeless or going without food and other necessities.

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Unemployment is a major problem in Nigeria that needs urgent addressing. The government should prioritize implementing policies that encourage entrepreneurship. These are policies such as investing in education and training and improving infrastructure. These solutions will help to create jobs and reduce poverty. Additionally, the government must promote economic growth to boost the economy and create more jobs. Only then can the country begin to address the effects of unemployment in Nigeria.

READ ALSO: Importance of crude oil in Nigeria's economy well explained

Legit.ng recently published an article on the economic relevance of crude oil in Nigeria. Oil extraction funds a slew of multibillion-dollar investments in Nigeria.

The government uses cash from oil extraction to fund practically all developing sectors, infrastructure, and so on. Furthermore, the sector employs millions of Nigerians and has significantly improved people's living standards.

Source: Legit.ng

Adrianna Simwa (Lifestyle writer) Adrianna Simwa is a content writer at Legit.ng where she has worked since mid-2022. She has written for many periodicals on a variety of subjects, including news, celebrities, and lifestyle, for more than three years. She has worked for The Hoth, The Standard Group and Triple P Media. Adrianna graduated from Nairobi University with a Bachelor of Fine Arts (BFA) in 2020. In 2023, Simwa finished the AFP course on Digital Investigation Techniques. You can reach her through her email: [email protected]

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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Analysis of the Causes and Effects of Unemployment in Nigeria towards a Solution for Graduate Idleness and Poverty Alleviation

2019, IOSR-JHSS

This paper analysed the causes and effects of unemployment in Nigeria with a view to proffering practical solutions to it so as to reduce poverty rate. Secondary data gathered from various sources such as: CBN reports, NBS reports et cetera covering the period from 1985 to 2015 were used.It employed the regression analysis as the analytical method throughE-views version 9and found out that a percentage increase in population growth will increase unemployment by 4.95%. Also, the study found a positive relationship between government educational expenditure and unemployment rate in Nigeria and lastly, the result showed there is a positive relationship between gross capital formation and unemployment rate in Nigeria. It concluded by recommending that development of entrepreneurial skills and initiatives through entrepreneurship education and training should be of paramount importance especially in the higher education sector so as to facilitate the employability and creativityand productivity of graduates who will derivatively contribute to the wealth of the nation not only as job seekers, but also job creators.

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ABSTRACT Unemployment which is one of the major economic problems confronting Nigeria has been seen to take an increasing turn in form of graduate unemployment retarding the economic growth of Nigeria. The study seeks to explain in details the causes of graduate unemployment and its psycho-social effect; it specifically focuses on quantitatively analysing the relationship between graduate unemployment and economic growth. Empirical studies have identified quality of labour force (graduates), trade union activities( agitation for the review of minimum wage), economic recession (resulting to inflation pressure), government policies (with respect to lending interest rate, indigenization, import substitution to mention a few), the existing unemployment level and domestic investment as the major factors of graduate unemployment. All of which were used to build an all inclusive model for this study, showing the relationship between graduate unemployment and economic growth in Nigeria. The study employed the use of augmented Solow growth model and ordinary least square regression analysis to estimate the elasticity between the factors and economic growth. Empirical result showed the presence of a unit root at first difference for all variables. Cointegration using Johansen test reveals a stable long-run relationship between economic growth and the fundamental variables. Also the result of the estimated model shows unemployment rate, gross domestic investment, and existing labour force to be the significant variables influencing economic growth of the country. The study recommends measures that promote greater domestic investment, quality of labour force and reduce unemployment rate in the country.

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This study examines the role of entrepreneurial education in the reduction of unemployment among Nigerian graduates. The population of the study comprises of 732 corps members in Rivers State. A sample of 548 corps members were composed and used for the study through purposive sampling technique. Three research questions were formulated to guide the study. The instrument used for data collection was questionnaire titled "Reducing Unemployment among Nigerian Graduates through Entrepreneurial Education" (RUNGEE) which was design using Likert-5-point rating scale. The RUNGEEQ was specifically used to obtained information base on the research questions. The research questions were answered using mean with standard deviation. It was found that Skills such as welding and fabrication, food and catering services, electrical installation etc can make Nigerian graduates entrepreneurs to reduce unemployment. Creation of jobs for self-employment, stimulation of rural, economic and industrial development are benefits of entrepreneurial education to Nigerian graduates. Based on the findings, it was recommended among others that Entrepreneurial education in tertiary institutions should be practically oriented rather than theory as this will exposed the students to various lucrative skills, Access to credits/loans should be granted without collateral in order to make the training realizable and achievable.

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Unemployment is defined as a situation whereby a skilled or academically qualified individual who is able and willing to work, is unable to secure suitable paid employment. It is a social condition that can cause considerable social alienation, low self esteem and result in protracted poverty owing to the fact that the individual involved has no means of livelihood and therefore may be perceived by the society as a nuisance, burden and persona non grata. The consequences of unemployment are diverse and can lead to depression if not checked. This paper identified some types, causes, effects and remedies of unemployment in Nigeria. Generally, graduates who have spent years in rigorous academic pursuits with earned university degrees are the most affected by the prevalent unemployment in Nigeria. It was therefore recommended that the menace of unemployment requires an integrated holistic approach by the government, higher institutions and the private sector. Also, provision of social infrastructure such as power, efficient transportation system and diversification to agriculture will create an enabling environment for more employment opportunities.

Musemakweli Divin

Nigeria like most developing nations of the world is faced with myriad of problems ranging from poverty, unemployment, ethno-religious conflicts, to diseases among others. These situations pose great challenges to the very existence of individuals in most developing nations thereby calling for the training of educated men and women who can function effectively in the society in which they live. Information from media and day to day experiences reiterates the high rate of graduates unemployment in Nigerian. This problem is said to be traceable to the disequilibrium between labour market requirements and lack of essential employable skills by the graduates. This paper therefore examines the importance of entrepreneurship education as tool for reducing the alarming trend of graduates’ unemployment in the country. The methodology of research adopted is content analysis. The paper concludes by suggesting ways of boosting job and wealth creation through entrepreneurship education in Niger...

Udeme Usanga

Nigeria's growing unemployment situation and how it increasingly dwindle the growth and development potentials of the country is worrisome. Official figures from the Bureau of statistics that 20% (about 30million), which still did not include 40million other Nigerian youths captured in World Bank statistics in 2009, are unemployed. This means that out of the 150 million Nigerians, 50% are unemployed, or worse still, at least 71% of Nigerian youths are unemployed. This paper focuses on tackling unemployment through entrepreneurship education as the way to get out of joblessness and poverty in Nigeria. It examined the role and contributions of entrepreneurial education, mindset and skills development to employment generation in Akwa Ibom and Ebonyi States, Nigeria. It is obvious from the paper that youths found great value in skills acquisition because the fight against poverty cannot be won by just receiving money from rich people every day, rather take from them wealth-job creating skills for self-sustenance. Government should make entrepreneurship sellable to the people by inculcating it into the educational curriculum at every strata of the educational sector from the primary school to tertiary levels and those that have dropped-out-of formal employment and also utilize a re-modeled NYSC scheme to educate the youths more on the importance, essence and need for entrepreneurship development especially on a practical basis and then find a means of supporting these entrepreneurship projects cutting across all spheres of the country. Government should also create enabling environment for entrepreneurship to thrive by ensuring social security and adequate infrastructural facilities.

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The study examined the effect of entrepreneurial education on unemployment reduction among students in Chukwuemeka Odumegwu Ojukwu University, Igbaria. The problem of the study is as a result of increasing rate of unemployment in Nigeria. The study was anchored on Human Capital Theory and risk taking theory. As a cross-sectional survey research design, a structured instrument developed by the researcher to reflect such options as strongly agree, agree, undecided, disagree and strongly disagree popularly referred to as five (5) points likert scale was used to obtain information from the respondents. The population of the study was limited to final year students of Business Administration and Entrepreneurship Studies Department in Chukwuemeka Odumegwu Ojukwu University, Igbariam. The total population was 195. Business administration was 128 while entrepreneurship was 67. The study used convenience sampling technique in selecting the sample size for the study based on convenience and e...

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The paper examined Entrepreneurship Education as a tool for reducing unemployment among the graduates. The study emphasized skills and knowledge required to become employable and self-employed. Entrepreneurial opportunities and ability to establish small scale business for self reliance. The issue of unemployment and under-employment as a resultant effect of non utilization of required skills from various institutions, which made graduates to relay on white collar jobs. The paper observed that unemployment was inherited from time of our colonial masters who basically operated a policy that does not give opportunity for self employment rather a policy that trained people to become clerk interpreters and inspector among others. It was on this note that, the federal government of Nigeria FRN (2004) on the educational policy introduced an entrepreneurial skills in our various institution of higher learning that can provide skill acquisition for youth in the country and to be gainfully employed and self reliance. The consequences of youth unemployment were discussed and the possible solutions were also examined. It was recommended that skill acquisition should be included in the school curriculum. Also technical and vocational training should be implemented in the school programme. The general public should be enlightened on the importance of entrepreneurship skills to better the lot of people in the country.

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