Nigeria continues to grapple with rising unemployment, with insecurity, poor economic planning, and a tough business environment emerging as major obstacles to job creation and sustainable livelihoods.
Across marketplaces, motor parks, social gatherings, and other public spaces, the experiences of many Nigerians tell a similar story — a shrinking number of opportunities and increasing difficulty in securing stable employment.
Data from the National Bureau of Statistics (NBS) shows that the unemployment rate stood at 4.2 percent in the second quarter of 2023, translating to about 9.8 million unemployed Nigerians, highlighting the scale of the challenge facing the country’s labour market.
Providing expert insight into the crisis, Development Consultant and Public Affairs Analyst, Jide Ojo, identified insecurity, weak economic planning, and a harsh business climate as the leading drivers of unemployment in Nigeria.
In an interview with RBN in Abuja, Ojo explained that insecurity remains the most critical factor affecting job creation and economic productivity.
“Drivers of unemployment in Nigeria are many… top of my list is insecurity,” he said, explaining that widespread violence has displaced farmers, traders, and artisans into internally displaced persons (IDP) camps, stripping them of their livelihoods.
According to him, Nigeria lacks realistic development strategies that align with its rapidly growing population, while insufficient investment in vocational and technical education has left many young people without employable skills. Limited government hiring and a struggling private sector, he noted, have further compounded the crisis.
“Many businesses are folding off because they cannot cope with the cost of doing business,” he added, citing multiple taxation, high inflation, and weak consumer purchasing power as key pressures on businesses.
Ojo also highlighted underemployment and economic mismatch as growing concerns but stressed the need for adaptability in a changing labour market.
“One of the attributes of an enlightened mind is to adapt,” he said, noting that many Nigerians now work outside their original fields of study in order to survive.
He further urged the government to prioritize security, energy reform, and ease of doing business to stimulate employment.
“Government must find a way to ease business… issues around access to land, access to credit, multiple taxation and insecurity, need to be looked into,” he said.
The analyst emphasized the importance of affordable and reliable energy, noting that Nigeria generates far below its estimated electricity needs, a gap that continues to drive up production costs for businesses. He also called for reliable population data to guide planning, warning that persistent insecurity and policy bottlenecks could trigger further business closures and capital flight.
Low wages vs Rising costs
Beyond structural economic challenges, many Nigerians say low wages and rising living costs are discouraging job seekers from accepting available opportunities.
A lawyer, Oghenekome Akegor, argued that poor remuneration remains one of the major reasons unemployment appears persistent despite existing job openings.
“One of the source reasons is that people are underpaid,” he said, explaining that salaries often barely cover transportation and feeding, leaving workers with little or nothing at the end of the month.
He also criticized what he described as unrealistic job requirements, noting that some employers demand years of experience for relatively low-paying roles.
“You are looking at an offer that wants to pay you ₦200,000, asking you to have worked somewhere else for 10 years,” he said.
Akegor further alleged that limited opportunities in top firms are often inaccessible to ordinary applicants, as many job seekers target large organizations such as Shell in search of better prospects.
“Millions of people apply only for them to take… people already selected,” he added, suggesting that the recruitment process in some cases lacks transparency.
According to him, meaningful reform is needed to align wages with job demands and restore confidence in the employment system.
“If you want people to work, let what you are offering match what you are asking them to do,” he said, stressing that fair remuneration and stronger regulation are essential to addressing unemployment and worker dissatisfaction.
Other Nigerians who spoke with RBN echoed similar concerns, pointing to rising transport costs, low wages, and increasing living expenses as key reasons many people are reluctant to take up available jobs.
Nelson Ruben, a resident of Maitama, explained that commuting expenses alone make many job offers unattractive.
“Transportation… is one of the major challenges we are having,” he said, noting that workers who live far from their workplaces often struggle to balance wages with daily transport fares.
For Rejoice Iwuh, a trader, the poor financial return on paid employment is pushing many Nigerians toward small-scale businesses and self-employment.
“By the time you calculate your transport, your expenses, you see that you are left with nothing,” she said.
Catherine Danlami, another Abuja resident, pointed to strict job requirements as an additional barrier, noting that some employers demand qualifications many applicants do not possess.
“They will start telling you a master’s degree… and probably you just have an ND or HND,” she said, highlighting how skill gaps and qualification demands continue to limit access to employment opportunities.
Global Pressure
The unemployment challenge in Nigeria also reflects a broader global trend.
In a recent report, the World Bank projected that about 1.2 billion young people will enter the labour force in developing economies over the next decade, while only about 400 million jobs are expected to be created within the same period.
Experts warn that countries like Nigeria must urgently address structural barriers to job creation or risk worsening unemployment, economic inequality, and social instability in the years ahead.
By Godwin Igber