Global Business and Economics Research Journal

ISSN: 2302-4593
Vol. 3 (1): 68 - x

The rising rate of unemployment in Nigeria: the

socio-economic and political implications
Asaju Kayode
Federal University Wukari, Nigeria
asajuk@gmail.com

Samuel Arome
Angel Crown College of Education, Nigeria

Silas Felix Anyio

Ahmadu Bello University, Nigeria

Abstract
The incidence of unemployment in Nigeria in this 21st century is alarming. The rates keep on
rising without any appreciable effort to cushion the effects. Hence, this paper examines the
factors responsible for high unemployment in Nigeria and its social, economic and political
implications. Findings revealed that corruption in both public and private and at the
individual levels, industrial decay, and neglect of the agricultural sector are among many
others factors responsible for the scourge. It was also revealed that widespread poverty, youth
restiveness, high rate of social vices and criminal activities are prevalent because of
joblessness, and if not controlled, apathy, cynicism and revolution might become the
consequent. The study therefore, recommends urgent intervention in the sensitive sectors of
the economy such as power, industry, and agricultural sectors in order to create employment
opportunities. Also, the fight against corruption should be intensified.
Keywords: employment; socio-economic; political; unemployment
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Citation:
Kayode, A. et al. (2014). The rising rate of unemployment in Nigeria: the socio-economic and political implications. Global Business and
Economics Research Journal, 3(1): 68-x.

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Kayode et al. Global Business and Economics Research Journal
Vol 3 (1): 68-x ISSN: 2302-4593

1. INTRODUCTION
Unemployment is one of the fundamental developmental challenges facing Nigeria at the
moment. Research have shown that unemployment was high in the 1980s, but the available
reports from various local and international bodies, and the glaring evidence of joblessness in
this decades are clear indications that there was no time in Nigeria’s chequered history where
unemployment is as serious as now. One cannot really conclude that the government at one
level or the other have not done anything at one time or the other, to reduce unemployment in
Nigeria. For instance, the creation of National Directorate of Employment (NDE) and its
skills acquisition programmes, NAPEP, PAP, the SURE-P,YOUWIN, just to mention a few,
are some of the various intervention mechanisms aimed at ensuring economic growth that is
rich with job creation opportunities. Besides, the Federal Government over the years has been
claiming strong real GDP growth rate measuring at 6% or 6.5% since 2005 till date (see
Aganga, 2010 and Ogunmade, 2013). There is apparent paradox. A situation whereby, there
is a decade of strong real GDP of 6.5% economic growth, and in the same period,
unemployment rate continue to rise annually from 11.9% in 2005 to 19.7% in 2009, and over
37% in 2013% (Aganga, 2010 and Ogunmade, 2013). The apparent economic growth has not
lead economic development. The rate of poverty is still very high (Sanusi, 2013), the
industries are still in shambles, technological development is till at rudimental stage, income
inequality is high, immortal mortality rate and child mortality rate is high, and in fact,
Nigeria development index is still very low.
Unemployment according to ILO, is among the biggest threats to social stability in many
countries (including Nigeria), putting the global rate at 12.6% (ILO, 2012). When compared
with her counterparts in the continent, Nigeria’s unemployment crisis is more serious. For
instance, South Africa’s unemployment rate is currently standing at 25.2%, and in Ghana is
about 14% in 2010, while Nigeria is around 37%. Recent statistics by the World Bank has
put the unemployment rate in Nigeria at 22 percent, while the youth unemployment rate is 38
percent. The report shows that 15-35 years olds account for close to 60 percent of the
Nigeria’s population and 30 percent of the work force. The report also indicates that
approximately 4 million people entered into the labour market every year.(Subair, 2013).
This situation is sad to hear of a country that is blessed with a lot of human and natural
resources capable of providing employment for the teeming youths in Nigeria. As noted by
the World Bank report, the youth holds the key to achieving the Vision 20: 2020. The
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fundamental questions that naturally arise from these facts is that why is Nigeria
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unemployment rate continue to rise during the decade of about 7% (GDP) economic growth?

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Kayode et al. Global Business and Economics Research Journal
Vol 3 (1): 68-x ISSN: 2302-4593

What is wrong with the various intervention programmes during this period of high
unemployment cum GDP? What are the implications for socio-economic and political
development? These questions informed the need of this paper.
Therefore the objective of this paper is to examine the magnitude and dimensions of
unemployment in Nigeria and its implications for socio-economic and political development
in Nigeria. This paper undertook a qualitative research to answer these and many other
questions begging for answers using secondary sources (government publications, journals,
Local and international statistical reports and live TV broadcast). The content analysis was
utilized to analyze the data collected from these instruments.

2. CONCEPTUAL ISSUES
2.1 Unemployment
There seems to be a consensus on the definitions and usage of the concept, unemployment.
According to Udu and Agu (2005), unemployment is “a situation in which persons capable
and willing to work are unable to find suitable paid employment”. As defined by
International Labour Organisation (2007), unemployed workers are those who are currently
not working but are willing and able to work for pay, currently available to work and have
actively search for work. Hornby (2010) defines unemployment as “the facts of a number of
people not having a job; the number of people without a job; the state of not having a job”. In
the same vein, an operational definition of unemployment for this work will include the
underemployed, hence unemployment occurs when people who are able and willing to work
are without jobs, or cannot find work that is effective and productive to do. It also occurs
when people undertake jobs that are contrary or lower than their academic qualifications or
areas of specialization. For instance, a first or second degree holder that enrol as a recruit into
any of the armed forces of paramilitary or a degree holder working as a clerk in an office is
greatly underutilized and as such could be termed as unemployed even when such person is
on a job.
2.2 Underemployment
Underemployment is unemployment in disguise. Harold (2009) described
underemployment as when people are employed only on part time or at work that is
ineffective or unproductive, with a correspondingly low income that is insufficient to meet
their needs. This implies that underemployed individuals who are working outside their areas
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of specialisation due to lack of jobs and so, could not be paid commensurately to their
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qualifications or expertise. If the factors of production are not being used to the full capacity,
there is underemployment (Anyanwuocha, 2010).
2.3 Types of unemployment in Nigeria
Economists have distinguished between the various overlapping types (or causes) of
unemployment. Some types of unemployment in Nigeria are explained below:
1. Seasonal Unemployment:
According to Udu and Agu (2005) seasonal unemployment occurs mostly in industrial
sector, and in the enterprise that are seasonal in nature. Such activities engage labour
temporarily during peak periods. For example, during the rainy season, many men who are
engaged in fishing and building may go out of work during bad weather. Fishing, for
instance is not usually done during the rainy season in many parts of Nigeria. More so,
during Christmas season, shop owners and companies employ extra hands for the seasonal
sales. These extra hands are usually relieved of their jobs when demand for products
decreased.
2. Structural Unemployment
This occurs when a labour market is unable to provide jobs for everyone who wants
one, because there is a mismatch between the skill of the unemployed workers and the
skill needed for the available jobs (Wikipedia Encyclopedia, 2011).
Structural unemployment could also results from persistent cyclical unemployment,
that is, if the economy suffers from long-term low aggregate demand and in the techniques
of the industry, unemployment could occur (Udu and Agu, 2005; Wikipedia Encyclopedia,
2011; and Harold, 2009). For example, as time goes by, there may be permanent fall in the
demand for certain products which may be due to a change in taste. The brick industry in
Nigeria, is suffering permanent fall in demand now because people prefer to use cement
blocks to build their houses instead, this has caused sharp unemployment in that industry.
More so, long lasting low demand could make the unemployed disheartened while their
skills become rusty and obsolete, and as a result they many not fit the job vacancies that
would be created when the economy recovers. Much technological unemployment which
occur due to the replacement of workers by machines might be counted as structural
unemployment.
3. Frictional Unemployment
There seems to be divergence on the meaning and causes of frictional unemployment.
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For example, Udu and Agu (2005) asserted that, there is frictional unemployment when
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certain occupations have surplus workers in one part of the country, while vacancies for

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Kayode et al. Global Business and Economics Research Journal
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similar jobs occur and are not filled in other parts of the country. To them, immobility of
labour and imperfect knowledge of the existence of opportunities elsewhere are the main
cause of frictional unemployment.
In contrast, Harold (2009), Anyanwuocha (2010), and Wikipedia Encyclopedia (2011)
Agreed that frictional unemployment is the time period between jobs, when a worker is
searching for job or transitioning from one job to another. It occurs because workers
seeking jobs do not find them immediately. Friction here refers to the incongruity between
the demand for and supply of labour (Harold, 2009). For example, frictional
Unemployment could occur between the time a student completes his studies and the time
he is able to find a job (Anyanwuocha, 2010). This type of unemployment is always
present in an economy and is more common with specialised labour.
4. Transitional Unemployment
Udu and Agu (2005) refer to this as normal unemployment, because it is short duration.
It does not harm the economy. In construction industries or contract jobs which rely
heavily on manual labour, workers are temporarily laid off at the end of major
assignments. Such workers are re-engaged when other jobs becomes available. Others may
drift to other ongoing projects.
5. Classical Unemployment
This occurs when real wages for a job are set above the market – clearing level, causing
the number of job-seekers to exceed the number of vacancies.
Most economists have argued that unemployment increases the more the government
intervene into economy to try to improve the condition of those with jobs. For example,
minimum wage laws raise the cost of labourers with few skills to be above the market
equilibrium, resulting in people who wish to work at the ongoing rate but cannot as the
wage enforced is greater than their value as workers becoming unemployed. Furthermore,
laws restricting lay-offs made businesses less likely to hire in the first place, as hiring
becomes more risky, leaving many young people unemployed and unable to find work.
For instance, in Nigeria, before the recent recruitment exercise in some ministries and
parastatals (e.g. Ministry of Interior), there was embargo placed on employment for
decades (Agbaegbu, 2011), meanwhile, the condition of service has been remarkably
improving.
6. Hidden Unemployment
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Hidden unemployment is the unemployment of potential workers that does not usually
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reflects on official unemployment statistics, due to the way the statistics are collected. In

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many countries only those who have no work but are actively looking for work (and/or
qualified for social security benefits) are counted as unemployed. Those who have given
up looking for work (and sometimes those who are on government retraining programmes)
are not officially counted even though they are unemployed. The same applied to those
who have taken early retirement to avoid being laid off, but would prefer to be working.
The statistics also do not count those with part time or seasonal job who would rather have
full time jobs as unemployed. In addition, those who are of working age but are currently
in full-time education are usually not considered unemployed in government statistics.
Because of hidden unemployment, official statistics often underestimate unemployment
rate.
However, a critical examination of the various types of unemployment shows that
unemployment can be voluntary or involuntary. Though, there have been several definitions
of voluntary and involuntary unemployment in the economic literatures, a simple distinction
is applied. Voluntary unemployment is attributed to individual’s decision which includes
workers who reject low wage jobs.
Whereas, involuntary unemployment exists because of the socio-economic variables (such
as the market structure, government policies, etc.) which permeate the environment in which
one operates. It includes workers fired due to an economic crisis, industrial decline, company
bankruptcy or organisational restructuring. Hence, structural unemployment, and classical
unemployment are largely involuntary in nature. In addition, most cases of unemployment in
Nigeria are usually involuntary.

3. THEORITICAL FRAMEWORK
There remain divergent theoretical debates among the economists and theorists regarding
the issue of unemployment. However, the two prominent schools of thoughts will be applied
in this research work to discuss the multidimensional situation of unemployment in Nigeria.
These are Keynesian Economic Theory of unemployment) and the Marxist Theory of
unemployment
3.1 The Keynesian unemployment theory
This theory is also called the cyclical or deficient-demand unemployment. The cyclical or
Keynesian economists hold the view that unemployment occurs when there is not enough
aggregate demand in the economy to provide jobs for everyone who wants to work
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According to these economists “when demand for most goods and services falls, less
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production is needed and consequently fewer workers are needed, wages are sticky and do

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not fall to meet the equilibrium level, and mass unemployment results (Wikipedia
Encyclopedia, 2013).
The name cyclical is derived from the “frequent shift in the business cycle, although
unemployment can also be persistent”. For instance, the decade of the 1930s saw the Great
Depression impact on labour market across the globe. In Germany for instance, the
unemployment rate reached nearly 25% in 1932. In some towns and cities in the north-east of
England, unemployment reached as high as 70%; Canada reached 27% at the depth of the
depression in 1933. The United States unemployment rate averaged 3% in 1929, but in 1933,
25% of all American workers and 37% of all non farm workers were unemployed. More
recently, history repeat itself again when more than 25 million people in the world 30 richest
countries will have lost their jobs and joined the already unemployed workers between the
end of 2007 and the end of 2010, as the global economic downturn pushes most countries
into recession again (Wikipedia Encyclopedia, 2011).
Nigeria seems to be one of the worst hit. For instance, while many government parastatals
and agencies lay embargo on employment in the last two decades, within the same period,
governmental reforms disengaged about 121,731 workers from the public service between
2006 and 2007. During the first phase of the rightsizing process of the 2005 public service
reform, about 30,000 officers of the core civil service were disengaged from service.
(Adegoroye, 2006). The banking industry also suffered adverse effects of the financial crisis.
Some banks in the sector massively ‘swept out’ their work force in a bid to remain in
business and this has drastically increased the rate of unemployment in Nigeria.
The Keynesian economists argue further that the number of unemployed workers exceeds
the number of job vacancies, so that even if full employment were attained and all open jobs
were filled, some workers would still remain unemployed due to some mismatch in the
economy. Some associate this theory with frictional unemployment because the factors that
cause the friction are partly due to cyclical variables. For example, a surprise decrease in the
money supply may shock rational economic actors and suddenly inhibit aggregate demand.
Hence, Keynesian economists see the lack of demand for jobs as potentially resolvable by
government intervention. Their prescription for reducing unemployment is deficit spending
by government to boost employment and increase in aggregate total demand. They further
suggested intervention through an expansionary monetary policy that increase the rates
thereby leading to an increase in non-government spending (Haris, 2005), and policies that
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encourage more private investment (Obadan and Odusola, 2010).

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3.2 Marxist theory of unemployment

This theory was developed by Karl Marx in 1863. From his Theory of Surplus Value
comes the citation below:
“It is the very nature of the capitalist mode of production to overwork some
workers while keeping the rest as a reserve army of unemployed paupers.”
(Karl Marx, 1863) Source; (Wikipedia Encyclopedia, 2011)
Karl Marx, in this theory, believes that unemployment is inherent within the unstable
capitalist system and periodic crises of mass unemployment are to be expected. Capitalism, to
the Marxists, unfairly manipulates the labour market by perpetuating unemployment which
lowers labourers’ demand for fair wages. Workers are ‘pitted’ against one another at the
service of increasing profits for owners. In the conception of Karl Marx, the only way to
permanently eliminate unemployment would be to abolish capitalism and the system of
forced competition for wages, and then shift to the socialist or communist economic system.
For the contemporary Marxists, the existence of persistent unemployment is a proof of
inability of capitalism to ensure full employment.
The socio-economic distress the Nigerian citizens faced under colonialism led the
populace to clamour for socialism as advocated by the Marxists. The socialist movement was
initially a reaction against extreme poverty caused by capitalism on the masses. It lays great
emphasis on the state embarking on a broad programme of welfare for the people, “the
programme that would provide social insurance to protect the masses against unemployment
and economic distress”; for instance, the post-independent Africa preached socialism. The
NCNC government under Dr. Nnamdi Azikiwe and Dr. Michael Opara, preached “Welfarism
and Pragmatic Socialism”. The Action Group, under Chief Obafemi Awolowo advocated
“Democratic Socialism”. And in Ghana, under Dr. Kwame Nkrumah, many state industries
were instituted (Udu and Agu, 2005).
However, the present day Nigeria seems to be taking a leap at mixed economic system due
to low impact of socialism to bring about real economic growth and development.
Developing countries of which Nigeria is one, are calling on both the government and private
sectors to cooperate and develop the country’s economy. Recently, the government is
adopting the public- private partnership initiative in achieving and accelerating some
developmental objectives. Pivoting the economy cannot be left in the hand of the private
sector alone; there is the need for the government to participate fully. Asaju et al (2013) had
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strongly posited that full participation of government in running the economy through its
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fiscal policy will ameliorate Nigeria’s numerous economic challenges especially poverty,
unemployment and corruption.
More so, some intervention programmes introduced in Nigeria such as the Nigerian
Directorate of Employment (NDE) with the goal of designing and implementing programmes
to combat mass unemployment, Poverty Alleviation Programmes (PAPs), Subsidy Re-
investment Programme (SURE-P), YOUWIN programme, etc, and subsequent injection of
billions of naira into these programmes and other sectors to create more employment
opportunities as claimed by the Federal Government can be seen as a leap into the Keynesian
theory.

4. TRENDS IN UNEMPLOYMENT RATES IN NIGERIA

Nigeria does not have any reliable figure on the rate of unemployment, as no institution
has so far produce accurate figures showing the current unemployment rate (Udu and Agu,
2005). The figures published by National Bureau of Statistics, the World Bank, and CIA
World Fact book and the recent one given by the Coordinating Minister for the Economy
(CME) Dr Okonjo-Iweala, appeared to be contradicting. The reason for these differences and
contradictions have been explained by Raheen (1993), Ohiorhenuan (1986) and Okigbo
(1991) in Obadan and Odusola (2010) that, one, only recorded open unemployment is
published by the official statistics; secondly, the concept of labour force adopted in Nigerian
Labour Force Statistical Survey excluded those below 15 and above 55 (but actively
working) out of the Labour Force and thirdly, Unpaid family workers and full house wives
were excluded.
Furthermore, the Director General of NDE asserted that people below 18 and above 60
years are not counted among the unemployed, so in counting unemployment, you don’t count
below 18years of age and according to the law, if you reach 60 years you retire. “It is this
margin of between 19 and 60 years that you can begin to aggregate those who are able to
work, willing to work, want to work, but have no work to do. You call them the unemployed”
(Akaeze, 2011).
However, the incidence of unemployment in Nigeria especially in this 21st century is
getting deeper and wide spread, cutting across all facets of age groups, educational strata and
geographical entities (Obadan and Odusola, 2010).The new trend, despite Obadan and
Odusola’s claim, that unemployment in Nigeria was more endemic in the 1980s than any
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other period because the rate rose from 4.3% in 1976 to 6.4% in 1980. Okigbo (1989)
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reported an estimated rate at 28.0% unemployed workers in 1986, but the present situation
seems to be quite worrisome.
According to a 2009 World Bank Report, 40 millions (28.57%) of the country’s
employable people are unemployed. The figure, according to the same World Bank, rose to
50 million a year later (Daily Trust, 2009). What make the situation more worrisome are the
controversies over whose figure is most correct or acceptable. It appears that the government
is still at cross-road about the actual percentage of her unemployed populace. How you
adequately and effectively plan for the problem you lack adequate knowledge about its
gravity? For instance, in May 2013, the NBS put the figure of the unemployed in Nigeria at
23.9% (Emejo, 2013). While Dr.Okonjo-Iweala, Minister of Finance and the Chairman of the
Economic Team in Nigeria puts the current figure at 37%. Meanwhile, experts and critics
have disagreed with both the NBS and the Minister, arguing that “research had shown that the
current level of unemployment in Nigeria was above 40% and would rise to 50% at the end
of this year” (Ogunmade, 2013). There is need for synergy of operation among the Ministries,
Department, and Agencies (MDAs) of government in order to tackle the developmental
challenges that is ripping off the gains of Nigeria’s high GDP.

5. UNEMPLOYMENT IN NIGERIA
5.1 Factors responsible for the rising unemployment in Nigeria
The high unemployment situation in Nigeria is real. Even the government (at all levels)
has severally admitted to this fact at different fora (see Daily Trust, March 16, 2009;
Economic Confidential, September 2010; Business Facts and Figures, 2010; Newswatch,
January 31, 2011). Nigeria is rich. It has every potential to develop and put poverty and
unemployment issues into history. But the paradox now is that Nigerians still wallow in
poverty as unemployment rate keep rising at alarming rate due to some factors discuss below:
5.1.1 Corruption
Corruption is not a strange word to an average Nigerian. Simply put, it is a dishonest or
illegal behaviour, especially of people in authority. It is an abuse of public office for private
gain which usually involves embezzlement of public funds, nepotism and falsification of
facts and figures, etc.
Corruption has no doubt don incalculable damages to every facets of the country Nigeria.
It has undermines democratic institutions, retarded economic growth and development
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(Samuel, 2011); and cause poverty in the mist of plenty, it has prevented the country from
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making political, social and economic progress and ultimately brought about high level of

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mass unemployment in the country. It has denied millions of Nigerians access to education,
housing, health, food and infrastructure; fumed late Gani Fawehinmi (SAN) (National
Standard, Oct. 15, 2007).
It is indeed worrisome for a country like Nigeria, with all the resources having over 61
millions (37%) unemployed; and over 70% of the population living below poverty line,
whilst its leadership at all levels amass ill-gotten wealth with impunity.
It is a popular belief that ascription and nepotism permeates job placement in both private and
public sectors. In the labour market today, ‘whom you know’ and ‘how much you can pay’
determines one’s chances of securing employment, rather than merit. These of course, have
denied well qualified, determined and energetic Nigerians employment.
5.1.2 Poor Management Practice
Nigerians are known for lack of good management culture. The country is blessed with
abundant natural resources. It is believed that if the resources are well harnessed, fully
developed and well managed, Nigeria is capable of surmounting the problem of high
unemployment and its attendant effects. Harnessing the nation’s economy involves
assessment of one’s resources at present and allocates them to different competing sectors so
as to meet some certain goals.
In the same vein, Nigeria does not lack good economic plans. What is lacking is proper
implementation. The process of implementation has been taken over by corrupt and
incompetent implementers failure result. The Public Service is the major implementer of
government policies and programmes in Nigeria. Asaju (2010) have asserted that the
Nigerian Public Service remains an obstacle to effective implementation of government
policies and programmes. These they adduced to the high rate of corruption and dishonesty
and indiscipline on the part of the public servants. Studies have shown that since the First
National Development Plan (1962-1968), Nigeria has had several other development plans
both long and short term. These plans have not resulted to the uplift of the standard of living
of the citizenries and overall development in the country.
5.1.3 Neglect of Agricultural sector
Until early 1970s, agriculture remains the mainstay of Nigerian economy. It constitute the
major income earning for the country and the largest employer of labour as over 90 percent of
the populace worked and earn their daily income from this sector. Following the rise in the
price of petroleum (oil boom) in 1970s, and the attendance huge foreign income, the
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agricultural sector suffered a substantial decline till today. The huge finances from the oil
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sector have brought about the growth of public and private enterprises which are concentrated

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in the urban centres. This later resulted in rural- urban migration in which able body men who
were farmers left their farm land to pick up menial jobs in the urban centres which are scarce
and inconsistence. Corporate Nigeria (2007) puts the country’s labour force statistics as
follows: 70 percent in agricultural sector, while 10 percent are in the industry and 20 percent
work in the service. Many analysts have argued that there is a strong relationship between the
neglect of agricultural sector and high rate of employment in the country. Agriculture remains
a panacea for reducing the high rate of unemployment and poverty in Nigeria. The
monopolistic nature (over reliance on oil) of the economy remains a contradiction.
5.1.4 Infrastructural Decay
This is yet another dismal factor that has rendered millions of Nigerians unemployed.
Haris Dafaranos, a former Greek Ambassador to Nigeria is one of the many who believe that
if the infrastructure is improved and empowered policies are put in place, people will have
opportunity to employment and use their talent in sectors like textile which is capable of
absorbing both skilled and semi-skilled workers (Abbah, 2009).
No doubt that the inability of successive administration to tackle the problem in power
sector has done an incalculable harm to all facets of the economy especially the
manufacturing enterprises in the country. Currently, there are barely 200 operators in the real
sectors of the economy. For example, Dunlop Nigeria Plc which was a dominant
manufacturing enterprise in the country has been shutting shops; Michelin, a tyre
manufacturing company followed suit. The last surviving textile mill in Kaduna, the United
Textile Mills (UNT) Plc has been shut down for long.
The United Nation Industrial Development Organisation (UNIDO) statistics indicated that
over 170 textile companies have closed shop and 120,000 employees are rendered jobless on
account of poor power and water supply, high cost of fuel and massive smuggling of
counterfeit products into the country from Asia (Kolade-Otitoju, 2009).
5.1.5 Lack of Purposeful Leadership and Good Governance
There is a general agreement among political observers of Nigerian politics especially in
recent times that the nation has never been lacking in terms of initiating good ideas towards
enhancing the welfare of the citizens, what was lacking is that of political will to turn their
ideas into concrete results. Asaju (2010) affirms that “hardly had any administration come on
board without a virgin plan professionally packaged to ease the agonising pains of the
masses, although these plans which come with great expectations are found to be more active
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on papers”. Successive administrations’ effort to combat the menace of unemployment and

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its attendant effects over the years ended up in a deadlock and the reason is not far from,

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corruption, lack of political- will to implement government projects, lack of good governance
etc which also aggravates political instability.
5.1.6 Unfavourable Government Reforms
If the nation’s social and economic system is malfunctioning, it calls for reformation. But
when economic reform is devoid of human face, the citizen’s welfare will be jeopardised. For
example, the public sector reforms embarked upon by the administration of former president
Olusegun Obasanjo saw the disengagement of 121,731 workers from the Federal Public
Service between 2006 and 2007. More so, it was disclosed that a total of 48,037 officers were
severed from the civil service in the first year of Late President Yar’adu’s administration
2008 (OSGF, 2008). The reform also hit the banking sector with massive retrenchment of
workers; the oil industry was not left out, NNPC alone pruned its work force from 17,000
down to just 9,000. One may ask whether reform paradoxically mean increasing
unemployment and wide spread poverty. The reform in Obasanjo’s own words will have to
wear a ‘human face’ if they are to gain widespread acceptance (Jason, 2007).
In contrast, government has slimmed applicants chances to fill vacancies available within
the same period without creating other opportunity. For instance, out of over 105,000
candidates who applied for employment into Federal Inland Revenue Service (FIRS) in 2010,
only 1,858 persons were recruited. The rest were left unemployed (see Akeredolu, 2010).
5.1.7 Unfavourable terms and Conditions Placed on Jobs
There is no doubt that years of experience brings about efficiency and productivity.
However, the issue of stretching years of experience and age limit by the employers as
criterion for employment has narrowed chances for employment. A 31-year-old unemployed
graduate of economics lamented thus:
I wonder where some of these people want us to get the
experience if we are not given the opportunity to even start.
In most cases, employers insist on 25 years age limit and five
years work experience. But with the challenges people face
before graduating in this country, how do you expect a 25
year old to have acquired five years experience? Akaeze
(2011).
Similarly, the presence of over-aged workers, those who are due for retirement but (for the
fear of the socio-economic insecurity in the country), refused to retire, has left no opening for
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fresher to come in. A study carried out by the Bureau of Public Service Reform indicates that
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succession potential into the Civil Service on the basis of age profile is very low. Using 25

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year as the optimum age of basic degree graduate into the Civil Service on GL.08 and a
maximum 35 years in service to attain age of compulsory retirement age of 60 years; and the
FCSC prescribed promotion eligibility, grade level stay of 3 years between GL.08 and 15 and
4 years between GL.15-17, the study shows that 91.5% of the officers were found to be over
aged for their grade levels and position occupied. Thus the succession potential was less than
20% in all cases. (Adegoroye, 2006). The above findings have a great implication for
employment opportunities, especially for the youths who are more vibrant and energetic.
5.1.8 Systemic Problems in Education
Most people blamed the falling standard of education in the country for the rising
unemployment in Nigeria. It has been argued that many universities and other tertiary
institutions shun out half-baked products in their thousands who are hardly suitable for the
labour market or gainful employment.
Some educationists refute such assertion, and argued that “where there are half-baked
products from our universities, know that the problem is systemic”. Turning the blame back
to the government, Ndifon (2009) argued that the curriculum has not been planned to meet
with the present society and in most cases there are poor facilities and sometimes non to train
the students. In the same vein, Samuel (2011) dictum that the educational system laid much
emphasis on certificate acquisition while neglecting the application of the knowledge and
skills acquired to meet the challenges of the contemporary Nigeria.
However, Ogunlade (2007) blamed the systemic problem in Nigeria educational system on
the colonial legacy which continues to rub shoulders and even persist as the order of the day
in contemporary Nigeria. The negative public attitude or prejudice for agriculture and the
dignity of labour during the colonial past still persist. He captured it thus:
the colonial policy of education for agriculture and dignity of
labour in Nigeria looked better on paper than in practice,
promoting agriculture to feed the nation and make it the
cornerstone of the economy in contemporary remains in the realm
of the rhetoric”. (Ogunlade, 2007)
Similarly, statistics have shown that about three millions youths graduate from our
secondary schools annually, but only about one-third (one million) of them proceed to higher
institutions; while about two millions go into the labour market without the basic
employability skills. Most of these youths hate going into agriculture of any entrepreneurial
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jobs. When students are trained to be ‘white collar job’ seekers rather than job creators or
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self-reliant, teaming unemployed graduates becomes the consequent.

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5.1.9 The Effects Of Globalisation

The process of economic globalisation in labour, in Nigeria has had a tremendous negative
impact on Nigeria economy and subsequently on the reduction of poverty and unemployment
(Agbaegbu, 2011).
According to Scholte (2000) reflected in Aluko (2006), globalisation means
“internationalisation (cross border relations between countries); liberalisation (removal of
government imposed restrictions on movement); universalisation (spread of various
objects/experiences); Westernisation or modernisation (dynamism); and deterritorialisation
(spread of super territoriality). The process whereby political, social, economic and cultural
relations increasingly takes on a global scale and have profound consequences for
individuals’ local experiences and everyday lives is referred to as globalisation (Aluko,
2006).
The challenges of globalisation on Nigeria have been daunting, because Nigeria has since
operated an open, externally dependent economy. The presumed benefits of
internationalisation lured Nigeria into accepting and adopting Structural Adjustment
Programme (SAP), a neo-liberal policy, with the hope that she will be in a position to benefit
from the process. It appears that due to the dependent nature of Nigeria economy, she cannot
benefit much from globalisation process.
The forceful implementation of neo-liberal policies such as SAP whose condition include
privatisation, trade and capital liberalisation, deregulation and removal of subsidiary,
devaluation of currency etc. are similar to the components of globalisation, which is a neo-
liberal ideology. This is couple with other conditions given to Nigeria by IMF, World Bank,
Paris Club among other imperialist financial institutions across the world before granting loan
facilities or aids to the country. Many of these conditions are unsuitable and anti- progressive
to the development efforts in Nigeria.
5.1.10 Lack of enabling Environment
Government does not create enabling environment for the unemployed Nigerians to create
job or small scale business for themselves. The hostile business environment is precipitated
by poor infrastructure, particularly poor power and water supply, and trade policies which
allow all kinds of imported goods to flood the country have created high unemployment rate
in the country.
Many artisans who cannot afford power generators have been forced to remain idle.
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Successive government have allocated resources to the power sector in last two decades, yet
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the target 4000 megawatts have not been met. Recently, it was announced that the countries

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generation capacity have fallen to about 2000 megawatts. This megawatt is grossly
inadequate even for domestic proposes. Roads and rail connectivity are in the state of
moribund and inefficient. Entrepreneurship has been systematically desensitised because
small businesses that have limited access to capital and political connections are forced to
collapse. The causes of unemployment in Nigeria are quite inexhaustible.
5.2 The Implications of Unemployment in Nigeria
The adverse effects of high unemployment in Nigeria cannot be overemphasised. The
implications are daunting on both socio-economic and political fronts. For clarity, these
implications are grouped into social, economic and political implications.
5.2.1 The Social Implications
The social implications of unemployment are first felt at the individual and household
level before extending to the entire society and consequently the economy. The unemployed
individuals are usually unable to earn money to meet financial responsibilities and the basic
necessities of life. Across Nigeria, the growing ranks of people who are made homeless today
arise from unemployment (see Newswatch Magazine January 31, 2011: 18-19, for the
ordeal of the unemployed Nigerian youths).
The effects of unemployment on the individual and household include; wide-spread
poverty and inequality with its attendance consequences which manifests in the following
dimensions; it increases susceptibility to malnutrition, illness and mental stress, subsequent
loss of self-esteem leading to depression; it can lead to escapists and/or other self destructive
behaviour used as coping mechanism e.g. excessive alcoholism, drug abuse, etc; it can lead to
dysfunctional social and emotional relationships; loss of self-confidence; feeling of shame,
un-fulfilment and inadequacy; it jeopardises access to health care; loss of social and
economic security; it limits educational opportunity for the children and other members of the
family; it limits the family access to good housing; it increases vulnerability of family
members especially women, children and elderly; and it can create tension and conflict e.g.
domestic violence.
On the society, unemployment brings about widespread criminality, societal ills and social
vices such as hooliganism, armed robbery and prostitution. In most cases, young graduates
who are caught in criminal acts such as armed robbery, kidnapping and prostitution attribute
their involvement in those crimes to the unemployment situation in Nigeria. In recent times,
the high rate of communal crisis, youth restiveness, hire killings and assassinations,
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kidnapping, vandalism, 419 and other forms of criminality and even the Niger Delta uprising
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and the recent ‘Boko Haram’ insurgents in the northern part of the country were attributed to
the high rate of unemployment, especially among the youths in the country.
5.2.2 Economic Problems Associated with Unemployment
An economy with high unemployment is not using all of the resources, specifically labour
available to it. Since it is operating below its production possibility frontier, it could have
higher output if the entire workforce were utilised.
If as a result of lack of jobs, the frictionally unemployed people accept and work below
capacity (i.e. underemployment), and operate below their skill level, it reducing the
economy’s efficiency. It leads to loss of potential output in a developing economy. More so,
during a long period of unemployment, workers can also lose their skills, causing a loss of
human capital. It could also lead to low level of income and high rate of income inequality
which further aggravates the high rate of poverty and unemployment with is attendance
consequences.
5.2.3 Political Implications of Unemployment
One of the major implications of high unemployment to a country like Nigeria with wide
spread corruption and bad governance, is palpable, increase apathy, cynicism and
despondency. Many people become increasingly individualistic and exclusively preoccupied
with the problem of survival and subsistence. They show little or no concern for government
issues, activities and policies and programmes.
High unemployment has been blamed for civil unrest in Nigeria, in some cases leading to
revolution e.g. Boko Haram crisis in the Northern part of the country. It was one of the
thematic causes of the mass-protest in Egypt that over-thrown president Hosni Mubarak on
11th February, 2011, leading to the current state of anarchy. Hassan (2010) believes that the
high rate of kidnapping, civil unrest and political thuggery can be traced to unemployment
situation in Nigeria. The former military President, General Ibrahim Babangida (Rtd) and
Chief Olusegun Obasanjo, disclosed at different fora that poverty and idleness were product
of political instability which in turn gave birth to incessant religious and ethnic confrontation
which in recent times led to mutual and mass slaughter of Nigerian people.
Blaming unemployment for all these crises, IBB said, “idle hands were always the devil’s
instrument and that if people were fully engaged they would hardly have the time to see
others as their enemies” insisting that government must develop the economy so as to provide
jobs for the youths and older population (Adesanmi, 2010). Addressing the world leaders,
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employers and Labour at the 100th International Labour Conference (ILC) in Geneva,
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Switzerland, Obasanjo was quoted as saying that “Nigeria was sitting on a keg of a gun

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powder given the rate of unemployment which according to him could to revolution, and that
hopeless idle hands is not only a devil’s workshop, but also a ‘tinder box’” (Folabi, 2013)

6. CONCLUSIONS AND RECOMMENDATIONS

The implications of high rate of unemployment in Nigeria can not be overemphasised.
Though there is no reliable figure for rate of unemployment, but fact of its gravity is not out
of place. It was found out that corruption, lack of good governance, inadequate infrastructural
facilities, lack of human capacity development, ineffective educational system, neglect of
agriculture, the effect of globalisation process, among other factors were responsible for the
high rate of unemployment in Nigeria. These factors have far reaching social, economic and
social implications for individuals and households and the society at large.
The paper therefore recommend the followings and it believes that if implemented
accordingly, greater prospects lies ahead of the country in reducing the rate of unemployment
and its consequences in Nigeria.
1. Government should honestly intensify the effort to fight corruption at all levels, in all
circumstances, both in the private and public sectors.
2. There is the need to diversify the economy away from oil sector. Other employment
driven sectors (i.e. agriculture, solid minerals, steel industries, railway etc) should be
effectively taped and utilised.
3. Power sector is one of the most sensitive and essential sectors of the nation’s economy.
This is because adequate power supply ensures a productive economy that is capable of
creating significant employment to local artisans, cottage and manufacturing industries.
Hence, there is need for a revolution in the power sector; if the power supply is
significantly improved, many industries that have either close shops or relocated to other
neighbouring countries, or collapsed, would return and commence operation or increase
to full production.
4. Government should make provision for bail-out funds for both private and public
companies and industries that their collapse or closure have rendered their workforce
jobless. The environment should be made conducive to make them function effectively.
Government as a matter of urgency need to address all the operational challenges and
threats confronting the manufacturing sectors and other investors in the country.
5. Agricultural sector should be given proper attention. Government at all levels should
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recognise the activities of rural farmers. Agricultural loans and other farm inputs such as
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fertilizer should be released on time and be made accessible to the rural farmers during
farming season.
6. The role of local entrepreneurs in economic development cannot be overemphasised.
Hence, government should create an enabling environment for Small and Medium scale
Enterprises (SMEs) to survive and grow. The government and private individuals should
provide start-up capital in form of loan or grants to those who want to go into business
and become self-reliant or self-employed and consequently employ others.
7. The non-governmental organisation should collectively join hands with government
agencies in organising seminars and workshops geared towards training the citizens to
explore their environment and God-given resources, maximise their potentials so as to
become self-reliant.
8. The educational system should be made functional. To achieve this, emphasis should be
laid on entrepreneurship education so that students should have acquired the basic skills
needed for self-reliant before graduation, from secondary schools.
9. Vocational guidance and counselling services should be given to students in the course
of their studies in order to prepare, guide and encourage them to read courses that would
guarantee them employment after graduation.
10. There is need to allow private sector to go into the economy to help in developing the
nation’s economy. Government should set standards and ensure that these standards must
be followed in order to regulate exploitative tendencies of the bourgeoisies and also
provide an environment conducive for them to operate.

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