LADOKE AKINTOLA UNIVERSITY OF TECHNOLOGY

(P.M.B 4000,OGBMOSO,OYO STATE, NIGERIA)

COURSE TITLE : ENTREPRENEURSHIP AND INNOVATION

COURSE CODE : ENT 211

FACULTY : PURE AND APPLIED SCIENCES

DEPARTMENT : PURE AND APPLIED CHEMISTRY

TOPIC : UNEMPLOYMENT AND UNDEREMPLOYMENT IN

NIGERIA

GROUP EIGHT (8)

GROUP MEMBERS :
S/N Names Matric no
1. Adeniyi Temitope Nafisat. 2023004594
2. Adejumo khairah 2023009688
3. Ariyo Oluwadarasimi. 2023005430
4. Ademola Aishat. 2023003083
5. Ahmed Taiwo. 2023007459
6. Azeez Baliqis. 2023006298
7. Bolarinwa Rukayat. 2023004080
8. Mgbeze adaorah. 2023010450
9. Jimoh Abdulhafeez. 2023009245
10. Olapade. Adeola. 2023007516

CONTENT
A.Statement of the problem: Understanding the meaning
of unemployment and underemployment in Nigeria.
How wide is has become: the inadequacies leading to the
problem.
B.Innovation: Our idea is to explore the root causes of
unemployment and underemployment, the devastating
effects they have on individual and society and most
importantly, we will discuss potential solutions that could
help Nigeria turn this crisis into an opportunity for growth
and development.
C. Can we do it?
Yes, by the end of this presentation, I hope you will
have a better understanding of the challenges we face
and the steps that can be taken to address them.
Unemployment and Underemployment in Nigeria:
Causes, Effects, and Solutions

Unemployment and underemployment are two of the

most critical economic challenges facing Nigeria today.
Despite being one of the largest economies in Africa,
Nigeria struggles with high levels of both unemployment
and underemployment. These problems have profound
social, economic, and political consequences for the
country. In this piece, we will explore the causes of
unemployment and underemployment in Nigeria, the
effects they have on individuals and society, and
potential solutions to address these challenges.
Understanding Unemployment and
Underemployment

Unemployment refers to the condition where individuals

who are capable of working, and are actively seeking
work, cannot find employment. It is often measured as a
percentage of the total workforce that is jobless and
actively looking for work. Underemployment, on the other
hand, occurs when individuals are working, but not to
their full potential. This could mean working in jobs that
do not match their skill set, working part-time when they
desire full-time employment, or being employed in roles
that provide insufficient income to meet basic needs. In
Nigeria, both of these issues are widespread, especially
among the youth population.

Causes of Unemployment and Underemployment in

Nigeria

There are several interconnected factors contributing to

high unemployment and underemployment in Nigeria.
These causes are both structural and cyclical, and they
require a multifaceted approach to address.
 1.Rapid Population Growth

Nigeria has one of the fastest-growing populations in the

world, with an estimated population of over 200 million
people. The country’s population is expected to continue
growing rapidly, with over 2 million young people
entering the job market every year. However, the
economy is not growing fast enough to absorb this
increasing labour force. This mismatch between job
seekers and available opportunities is a major driver of
both unemployment and underemployment.

2.Economic Dependence on Oil

Nigeria’s economy is heavily reliant on oil, which
accounts for over 80% of export earnings and 40% of
government revenue. However, the oil sector is capital-
intensive and does not generate enough employment
opportunities, particularly for the large youth
population. Moreover, the volatility of global oil prices
means that the economy is vulnerable to external
shocks, which often result in job cuts and economic
slowdowns. The lack of diversification into other sectors
such as agriculture, manufacturing, and technology
limits job creation.

3.Inadequate Education and Skills Mismatch

The Nigerian education system is often criticized for not
aligning with the demands of the labour market. Many
graduates leave universities with theoretical knowledge
but lack the practical, technical, and vocational skills
required by employers. This skills mismatch leads to a
large number of graduates who are either unemployed or
underemployed, as they are unable to find jobs that
match their qualifications. Moreover, the education
system does not sufficiently emphasize technical and
vocational education, which is critical in sectors like
agriculture, construction, and manufacturing. As a result,
many young Nigerians are unable to access the kinds of
jobs that are essential for economic development.

4.Insecurity and Regional Instability

Insecurity in certain regions of Nigeria, especially the
northeast (due to Boko Haram insurgency) and the
northwest (due to banditry and communal violence), has
led to the displacement of millions of people. These
conflicts disrupt economic activities, destroy
infrastructure, and force businesses to close, which
exacerbates unemployment in affected areas. The
resulting instability makes it difficult for people to earn a
living, further compounding the unemployment crisis.

5.Poor Infrastructure and Business Environment

Nigeria suffers from poor infrastructure, including
inadequate roads, unreliable electricity, and limited
access to the internet. These issues increase the cost of
doing business, reduce productivity, and deter potential
investors. Small and medium-sized enterprises (SMEs),
which are crucial for job creation, often struggle to
survive in such an environment. The lack of a conducive
business environment means fewer jobs are created, and
those that do exist often do not offer adequate wages or
job security.

6.Corruption and Poor Governance

Corruption is another major factor contributing to high

unemployment and underemployment in Nigeria. Public
funds that could be used for job creation, infrastructure
development, and social welfare programs are often
mismanaged or siphoned off. This lack of accountability
and transparency in government institutions leads to
inefficient policy implementation, which in turn hinders
job creation. Corruption also undermines the potential for
economic growth and stability, further exacerbating
unemployment.

Effects of Unemployment and Underemployment in

Nigeria
Unemployment and underemployment have far-reaching
effects on Nigeria’s economy, social fabric, and political
stability. These effects are particularly pronounced among
young people, who make up a significant proportion of
the unemployed and underemployed population.

1. Poverty and Income Inequality

One of the most immediate effects of unemployment and

underemployment is poverty. Without access to stable,
well-paying jobs, individuals and families are unable to
meet their basic needs, such as food, shelter, and
healthcare. According to the World Bank, over 40% of
Nigerians live below the poverty line. Youth
unemployment is particularly concerning, as young
people are often unable to support themselves or their
families, leading to an increase in the overall poverty
rate.

Furthermore, unemployment exacerbates income

inequality. The wealthy and well-connected may continue
to secure high-paying jobs, while the majority of the
population remains locked out of the job market, leading
to a widening gap between the rich and the poor.

2. Social Unrest and Crime

The frustration and disillusionment caused by high
unemployment rates often result in social unrest. As
young people struggle to find work and face a lack of
opportunities, they may resort to criminal activities such
as robbery, kidnapping, and drug trafficking as a means
of survival. Unemployment is a key driver of youth-led
violence in Nigeria, with many youths turning to gangs or
extremist groups in search of a sense of purpose and
financial security.

In addition, the lack of meaningful employment

opportunities can lead to a loss of hope and a sense of
disenchantment with the government and political
institutions, further destabilizing the country.

3. Brain Drain
The lack of job opportunities in Nigeria has led to a
significant brain drain, with many highly skilled and
educated Nigerians seeking employment abroad.
According to the International Organization for Migration
(IOM), Nigeria has one of the highest rates of emigration
in Africa, particularly among university graduates and
professionals. This outflow of talent reduces the country’s
capacity to develop and innovate, leaving it with a
shortage of skilled labour.

4 Economic Stagnation
The high levels of unemployment and underemployment
hinder economic growth. When large portions of the
labour force are either unemployed or underemployed, it
reduces the overall productivity of the country.
Unemployed individuals are unable to contribute to the
economy, while underemployed individuals are not
reaching their full potential. This results in lower
consumption, reduced demand for goods and services,
and a slowdown in economic activity. Over time, this
stagnation undermines the prospects for sustainable
development.

Potential Solutions to Unemployment and

Underemployment in Nigeria

While unemployment and underemployment are serious

challenges, they are not insurmountable. Addressing
these issues requires a comprehensive and multi-pronged
approach, involving both government and private sector
initiatives.

1. Economic Diversification
Nigeria must diversify its economy away from oil and
focus on developing other sectors such as agriculture,
manufacturing, technology, and services. By investing in
these areas, the government can create more jobs and
reduce the economy’s vulnerability to oil price
fluctuations. For example, modernizing agriculture can
create millions of jobs in rural areas, while the tech
industry offers potential for innovation and job creation in
urban centers.

2. Investment in Education and Skills Development

The education system needs to be reformed to
emphasize vocational training, technical skills, and
entrepreneurship. By aligning education with the
demands of the labour market, Nigeria can better prepare
its youth for the workforce. The government should also
invest in adult education and skills development
programs to help workers transition into new industries.

3. Support for Small and Medium Enterprises (SMEs)

Small and medium-sized enterprises are key drivers of job
creation in any economy. The Nigerian government
should create a more favourable environment for SMEs by
providing financial support, reducing bureaucratic
barriers, and improving access to markets. Encouraging
entrepreneurship, particularly among young people, will
also help reduce unemployment.

4.Improved Infrastructure
Investing in infrastructure, particularly in transportation,
electricity, and digital technology, is essential for creating
jobs. Better infrastructure will reduce the cost of doing
business and increase productivity, which can lead to the
creation of more employment opportunities. Additionally,
improving rural infrastructure will encourage businesses
to expand into underserved areas, creating jobs outside
of major urban centers.

5.Policy Reforms and Anti-Corruption Measures

The Nigerian government must implement stronger anti-
corruption measures to ensure that resources allocated
for job creation and economic development are used
efficiently. Strengthening institutions like the Economic
and Financial Crimes Commission (EFCC), improving
transparency, and enforcing accountability will help
create a more conducive environment for job creation.

7.Youth empowerment programs

Implement youth empowerment programs such as youth
entrepreneurship programs to support young people in
starting their own business.

8.Digital skills training

Provide training in digital skills like coding data, analysis
data, analysis and digital marketing.

9.Internship programs.
Encourage companies to offer internship program to
provide young people with work experience and skills

CONCLUSION
Unemployment and underemployment are major
challenges facing Nigeria, with far-reaching effects on
poverty, social unrest, economic growth, and overall
national stability. Addressing these issues requires a
comprehensive approach that focuses on diversifying the
economy, reforming the education system, supporting
SMEs, improving infrastructure, and combating
corruption. By taking these steps, Nigeria can create a
more inclusive economy that provides meaningful job
opportunities for all its citizens, particularly its youth.
Only through such efforts can Nigeria unlock its potential
and secure a prosperous future for its people.