Action over Inertia: How to tackle Unemployment in Nigeria

Introduction

This blog examines the critical definition of “unemployment” referred to in the Nigerian Labour Force Survey (NLFS) and the impact this has on how unemployment as a problem is tackled in Nigeria. The blog adds that in Nigeria, the responsibility for addressing unemployment appears to have shifted away from the Federal Government, first to the private sector and, ultimately, to the unemployed themselves. This troubling narrative around unemployment reframes a systemic economic and governance failure as entirely an individual shortcoming. Rather than being recognized as a structural challenge requiring coordinated public policy, robust job creation strategies, and targeted investment, unemployment is portrayed as a personal failure to “hustle” or “upskill.” The blog concludes with recommendations on how the right governance approach and effective policy implementation can solve Nigeria’s unemployment problem. This requires less emphasis on drafting new policies but a greater focus on leveraging and implementing the wealth of policy frameworks that already exist.

Unemployment and poverty in Nigeria

Globally, the definition of unemployment is determined according to the criteria set by the International Labour Organisation (ILO). In the most recent definition of the unemployed used for the Nigerian Labour Force Survey (NLFS), the "employed" now include those who have worked for remuneration or profit for at least one hour in the preceding seven days, regardless of temporary absence. While the "unemployed" now refer to those who are not already employed but are actively seeking paid employment and available to commence work either in the previous week or during the forthcoming two weeks [5].

Highlights

• Nigeria’s estimated population in 2022 was 216 million people – Nigerian Bureau of Statistics

• The Nigerian Labour Force Survey (NLFS) puts unemployment in Q1 of 2023 at 4.1%

• Nigeria’s unemployment rate in Q4 of 2020 is 33.3% - World Bank

• Nigeria is the 6th nation with the largest youth population in the world – World Bank

• About 160m are aged between 15 -35 with a median age of 18.1 years – United Nations

• Unemployment rates in Nigeria is a very difficult statistic to interpret.

In Nigeria's prior unemployment reports, the headline unemployment rate—such as the 33.3 percent recorded in Q4 2020—encompassed not just individuals who were unemployed (actively seeking and available) but also those engaged in labour for 1-19 hours per week [4]. Consequently, this headline figure conflated unemployment with a measure of time-based underemployment; yet, the Nigerian Bureau of Statistics (NBS) consistently reported unemployment in accordance with the "international" definition as well. Furthermore, transitory absences were not previously accounted for, hence the revised methodology accurately increases the tally of employed individuals.

The United Nations asserts that 1.2 billion individuals aged 15 to 24 constitute 16 percent of the world population [3]. For Nigeria, the 6th most populous country in the world, with a youth population of about 160 million, this situation offers immense possibilities with the right governance approach and policy options.

Unemployment imposes “dead losses” on individuals, communities and countries because readily available labour is either not utilized at all or underutilized at best [4]. People are poor because they have no jobs. However, examining poverty only through the lens of unemployment numbers is simply inadequate and deceptive. Understanding the unemployment-poverty-insecurity linkage is essential for setting up the right governance structures and designing effective policy implementation strategies to tackle it.

Who is responsible for the unemployment problem?

The alleviation of unemployment is a primary issue for any responsible government anywhere in the world [2]. However, the assurance of zero unemployment is unattainable due to factors such as high population growth, recessions, poor quality of education, skills to economic needs mismatch and technological advancements.

The American economy, despite its degree of capitalism, maintains that the invisible hand is unable to address the unemployment issue within its system. The "Employment Act of 1946," which serves as the foundational charter of U.S. Federal Economic Policy, designates high employment as the principal objective of governmental activity, articulated in the following terms:

The Congress hereby declares that it is the continuing policy and the responsibility of the Federal Government to use all practical means . . . to promote maximum employment, production and purchasing power [1].

In Nigeria, the responsibility for addressing unemployment—historically a core mandate of the state— appears to have shifted away from the Federal Government, first to the private sector and, ultimately, to the unemployed themselves. This troubling narrative seems to absolve the government from positioning unemployment in its rightful place as a governance priority to support the industrial and productive capacity of its populace and to allow the flourishing of those who able and capable of participating economically in society. When unemployment is increasingly portrayed as a personal failure to “hustle” or “upskill", it absolves policymakers of accountability but also undermines the collective urgency needed to address one of Nigeria’s most pressing socio-economic crises.

Recommendations

Addressing unemployment in Nigeria requires less emphasis on drafting new policies and more focus on leveraging and implementing the wealth of policy frameworks that already exist. Everything needed by the national and subnational governments in Nigeria to solve the socioeconomic challenges of unemployment already exists as a complete single policy or as elements of broader policies which is well articulated, written down and well bounded and displayed on a shelf somewhere in some government office in Nigeria. Beyond policy formulation, the right governance approach and effective policy implementation will make a new difference in solving the unemployment question.

1. Review and consolidate existing unemployment-related policies. Many policies— whether stand-alone or embedded within broader development strategies—are well articulated but badly implemented if at all implemented. Bringing them together into a single, coherent action plan will create clarity, avoid duplication, and strengthen accountability.

2. Improve governance systems. Coordination must exist between the Federal, State and Local Governments in tackling unemployment with clear lines of responsibility, combined with transparency and public accountability. This will build trust and ensure that unemployment intervention programmes deliver measurable results and are not just campaign slogans.

3. Strengthen policy implementation capacity. Policy objectives should be translated into actionable, time-bound operational plans, and assigned to existing government agencies (no need to create new ones) that will be tasked with delivery and measurable performance targets established. To ensure sustained policy implementation effectiveness, robust monitoring and evaluation frameworks must be embedded into the implementation process. These should be data- driven, allowing for timely course corrections and adaptive strategies.

4. Promote and encourage entrepreneurship. The implementation and expansion of policy reforms that reduce structural barriers to doing business in Nigeria should be fully operationalized particularly the Presidential Enabling Business Environment Council (PEBEC) reforms, which focus on eliminating bureaucratic constraints, improving regulatory transparency, and simplifying processes such as business registration, tax compliance, and access to credit. Additionally, policies such as the Industrial Revolution Plan, National Digital Economy Policy and Strategy (2020–2030), and the Startup Act 2022 will empower the private sector to expand productive employment opportunities, foster innovation, and unlock inclusive economic growth.

References

1. Ackley, G., 1978. Macroeconomics: Theory and Policy. Macmillan Publishing Co. Inc., New York

2. Adawo, M.A., Essien, E.B. and Ekpo, N.U., 2012. Is Nigeria’s unemployment problem unsolvable. Current Research Journal of Social Sciences, 4(6), pp.389-395.

3. BusinessDay 2024. Top 8 countries with the most young people – UN. 16 May. Available at: https://businessday.ng/news/article/top-8-countries-with-the-most-young-people-un/ (Accessed: 1 August 2025).

4. Investopedia 2023. The Cost of Unemployment to the Economy. Available at: https://www.investopedia.com/financial-edge/0811/the-cost-of-unemployment-to-the-economy.aspx (Accessed: 1 August 2025).

5. Lain, J. and Utz, P., 2023. Nigeria’s dichotomy of low unemployment and high poverty rates. World Bank Blogs, 20 October. Available at: https://blogs.worldbank.org/en/opendata/nigerias-dichotomy- low-unemployment-high-poverty-rates (Accessed 1 Aug. 2025).

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Author's Bio

Henry Akwuebu is a governance and public policy professional with experience working with governments, development institutions and partners on complex development and humanitarian challenges in Africa. He is also one of the pioneer members of the Africa Public Policy and Governance Network (APPGN).