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The unemployment rate is a major talking point when analysing Nigeria’s economic state. Over the years, the availability of employment opportunities for graduates has sharply declined, with unemployment rates reaching alarming levels in recent years. The unemployment rate among the country’s employable population is estimated to be about 4.84% in 2025, however, this is based on the updated Nigeria Labour Force Survey (NLFS), which adopts international standards. This lower figure reflects a broader definition of employment, including anyone who worked at least one hour in the past week, and excludes many previously counted as underemployed. While useful for global comparison, critics argue it overlooks the widespread reality of low-quality, informal jobs, making unemployment a continuing concern beneath the surface of the numbers. Given Nigeria’s large population of over 200 million people, this seemingly small percentage still reflects a high number of unemployed people. The Nigerian unemployed population includes those who are actively looking for work and not engaged in any employment arrangement for at least 20 hours or perhaps engaged in some form of paid work but not for up to 20 hours a week. The situation is attributed to several factors, including a mismatch between academic degrees and industry demand, among others. This situation is particularly severe among young people, many of whom have completed some level of formal education, and this is a wake-up call for the urgent need to future-proof graduates by equipping them with skills for the ever-changing job market. We will examine the state of graduate employment in the country and will explore strategies for bridging the skills gap and enhancing graduate employability.
The State of Graduate Unemployment
Graduate unemployment in Nigeria has evolved from a mere spike in statistics into a major socio-economic problem, worsened by the growing youth population, resulting in a saturated labour market, with about 600,000 students graduating yearly from various higher educational institutions. Despite earning academic degrees, thousands of these young Nigerians face significant challenges in securing gainful employment, largely due to a stark mismatch between academic degrees and the skills demanded by the labour market. This stems directly from the obsolete and insufficient curricula still used in most Nigerian higher institutions, which fail to equip graduates with the skills needed to address today’s sector-specific challenges. Another major contributor to unemployment in Nigeria is the ailing manufacturing sector, according to the National Bureau of Statistics (NBS) reports, the sector’s contribution to GDP fell from 16.04% in Q4 2023 to 12.68% in Q2 2024, highlighting the sector’s struggles. This downturn has limited the sector’s capacity to create meaningful employment due to factors like high operational costs, infrastructure challenges, and limited access to financing. It further affected related industries like agriculture, logistics, and SMEs that depend on steady factory demand. This contraction also slows economic growth, limits business expansion, and further deepens the unemployment crisis. Reviving this sector is essential for broader job creation and economic recovery.
Additionally, there is inadequate infrastructure in Nigeria, with Nigeria’s infrastructure deficit amounting to 30% of its gross domestic product (GDP) as of 2023, which falls short of the international benchmark of 70% set by the World Bank and the International Trade Office of the US Department of Commerce. This deficit stifles job creation as it limits business growth and hinders skill development, all of which worsen graduate unemployment. This trend paints a troubling picture of the country, with far-reaching implications for the quality and readiness of its workforce. Numerous Nigerian graduates on their end, have resorted to the fact that there is no room for them in the blue and white-collar job market, and when asked what jobs they would like to pursue upon graduation, the majority of Nigerian graduates are likely to respond, "Job no dey,” in the local Nigerian pidgin parlance, which means “there are no jobs." This sentiment reflects a widespread sense of pessimism among young job seekers.
Although this concern is beginning to receive renewed focus, it is no longer just a catchy phrase to say that in today's workplace, academic degrees alone are no longer enough; job markets now demand specific skills and grit from even the top graduates to fit in. These highlight the need for collaborative investment in research and development by higher education institutions, the private sector, and the government to build the capacity of graduates. By equipping graduates with relevant skills, knowledge, and resources to drive innovation, more decent and sustainable job opportunities can be created for Nigeria’s growing youth population and, more importantly, make them future job-fit.
Fixing the Work Readiness Puzzle: Integral Skills for Enhancing Employability
There is no denying that graduates need better preparation to thrive in the job market. Fortunately, the solution lies in equipping graduates with a balanced blend of hard and soft skills, as they play a crucial role in enhancing employability. The combination equips graduates to meet the demands of the workplace, making them valuable assets.
An image illustrating the connection between hard and soft skills
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Hard skills, which are specific, measurable abilities gained through education, training, and practice, are essential as they directly relate to a graduate's capacity to perform job-specific tasks. These hands-on specialised skills equip them with the required competencies that add immediate value to their organisations. On the other hand, Soft skills, which are interpersonal abilities like communication, teamwork, adaptability, and emotional intelligence, are also crucial for building relationships, resolving conflicts, and contributing positively to the company’s culture. As the job market continues to evolve, roles will increasingly demand not only technical expertise but also the ability to navigate the dynamic, collaborative, and diverse work environments. In this context, a strong combination of hard and soft skills will significantly boost graduate employability, ensuring they can thrive in roles that require both specialised expertise and human-centred interaction.
The era when graduates could depend solely on hard skills is over. Today, soft skills have become a critical factor in shaping employment opportunities for well-equipped graduates. When trained on these relevant skills, graduates are more likely to secure meaningful employment and add substantial value to businesses. This further contributes to closing the unemployment gap, as higher employment rates among graduates, in turn, serve as a catalyst for broader economic growth.
Strategic Interventions to Enhance Employability in Nigeria
In response to the growing need for a more balanced workforce, many organisations have launched targeted job readiness programs designed to upskill, unlock potential, and promote more talent within the workforce pool. Notable among these initiatives are:
These programs are designed to ensure the sustainability of the workforce while also contributing to the greater good of the economy.
Empowering Nigeria's Graduates for Global Workforce Competitiveness: Strategic Approaches
To position Nigeria as a competitive player in the global economy, it is essential to prioritise investments that increase the quantity and quality of skilled graduates. Over the years, experts have urged the university commission to update the higher institution curriculum to accommodate soft skills that will improve the quality of graduates, and this can be done only through industry-academia partnerships that offer great value by enabling collaboration between higher education institutions and industries to ensure that curricula are aligned with current job market demands. Outcomes of such collaborations can include practical coursework, introduction of dedicated soft skills training in line with industry requirements of different courses, internships, among others.
Additionally, institutions can partner with other relevant bodies, such as the National Skills Development Program, to Incentivise Vocational Training and Technical Education, and update their curricula to reflect real-world job market needs. Also, working closely with industries to incorporate practical experience and training in academic programs will help prepare graduates for the realities of the workplace and set them up to excel in their chosen fields and meet current market demands.
Graduates are the most crucial part of this transformation, and to thrive in a fast-paced, competitive job market, they must take ownership of their career paths by actively pursuing skills development and lifelong learning. By seizing available opportunities, whether through training programs, internships, or self-directed learning, they can equip themselves with balanced skills needed to be globally relevant, innovative, and resilient.
Together with the committed efforts of government, higher educational institutions, employers, and the graduates themselves, Nigeria can shape the future of the workforce that is ready for the local and global opportunities at large.
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