Why is youth unemployment so high despite Nigeria's large and young population?

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Nigeria indeed has a very large and young population, often referred to as a "youth bulge," which theoretically could be a demographic dividend driving economic growth. However, several factors contribute to persistently high youth unemployment, turning this potential advantage into a significant challenge:

  1. Skills Mismatch and Inadequate Education:

    • Outdated Curriculum: The Nigerian education system, particularly at the tertiary level, often teaches theoretical knowledge that is not aligned with the demands of the modern job market. Many graduates emerge with degrees but lack practical, technical, and digital skills sought by employers.

    • Lack of Vocational Training: There's a strong societal preference for university degrees over vocational and technical education. This leads to a shortage of skilled tradespeople and technicians, even as industries like manufacturing, construction, and renewable energy struggle to find qualified workers.

    • Poor Quality of Education: Public educational institutions often suffer from underfunding, inadequate infrastructure, and a shortage of qualified instructors, further compromising the quality of graduates.

  2. Slow Economic Growth and Limited Job Creation:

    • Oil Dependence: As discussed, Nigeria's over-reliance on oil has led to an economy that struggles to create sufficient jobs in diversified sectors when oil prices are low. The non-oil sectors, which have greater potential for mass employment (like agriculture and manufacturing), are underdeveloped.

    • Struggling Private Sector: The overall business environment in Nigeria is challenging due to issues like poor infrastructure (especially power), high cost of doing business, difficulty accessing finance, and policy inconsistencies. This discourages investment and limits the capacity of the private sector to expand and create jobs.

    • Informal Economy Dominance: A significant portion of the workforce (around 92.7% in Q2 2023) operates in the informal sector, which often offers low-paying, precarious jobs with little to no social protection or opportunities for career progression.

  3. Lack of Experience Required by Employers:

    • Many entry-level positions require prior work experience, creating a "catch-22" for fresh graduates who can't get experience without a job and can't get a job without experience. This perpetuates a cycle of unemployment.

    • Internship and apprenticeship opportunities are often limited or poorly structured.

  4. Corruption and Nepotism:

    • Systemic corruption and nepotism in the hiring process can sideline merit and qualifications, giving an unfair advantage to those with connections rather than the most competent candidates. This discourages motivated youth and perpetuates inequality.

    • Mismanagement of public funds meant for youth development programs further exacerbates the problem.

  5. High Population Growth:

    • While a young population is a demographic asset, rapid population growth without corresponding economic expansion means a large influx of new job seekers into a labor market that cannot absorb them.

  6. Geographical Imbalances and Urbanization:

    • There's a high degree of geographical mobility towards urban centers in search of jobs, putting immense pressure on limited urban job opportunities and infrastructure.

  7. Limited Access to Capital for Entrepreneurship:

    • Despite a strong entrepreneurial spirit among Nigerian youth (many of whom would prefer to start their own businesses), access to affordable loans, mentorship, and business development support is often limited.

  8. Government Policy Gaps and Implementation Challenges:

    • While various youth employment initiatives and action plans have been launched (e.g., NYEAP), their impact has often been limited by insufficient funding, inconsistent monitoring, poor implementation, and a lack of long-term strategic vision.

These factors combine to create a challenging landscape where millions of young Nigerians, despite their energy and potential, struggle to find meaningful employment, leading to social unrest, increased poverty, and a significant "brain drain" as many skilled youth seek opportunities abroad.

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