Finding a job in Nigeria can be very challenging for many reasons. The high unemployment rate, skills mismatch between job seekers and available jobs, slow economic growth, and lack of job opportunities in rural areas all contribute to the difficulty of securing employment.
High Unemployment Rate
According to the National Bureau of Statistics, Nigeria’s unemployment rate stood at 33.3% as of Q4 2020, meaning 1 in 3 Nigerians who are able and willing to work cannot find a job. The youth unemployment rate is even higher at 42.5%. With such a high number of job seekers competing for limited job openings, it is very tough for an average person to land a job.
Some key factors causing high unemployment in Nigeria include:
- Rapid population growth – Nigeria has a rapidly growing labor force, estimated at about 5 million new entrants each year.
- Slow economic growth – Nigeria’s GDP growth has been weak in recent years, averaging around 2%. This slow growth hampers job creation.
- Reliance on oil – Nigeria’s economy is heavily dependent on oil which creates volatile growth patterns and limited employment opportunities in other sectors.
- Inadequate infrastructure – Poor power supply, roads, etc. increase costs and risks for businesses, discouraging investments and job creation.
Skills Mismatch
There is a major gap between the skills possessed by many Nigerian job seekers and the skills required by employers. Nigeria’s education system is failing to provide graduates with skills relevant to the needs of the job market. Most university curriculums in Nigeria are theoretical and focused on white collar jobs.
On the other hand, employers these days are looking for technical skills like digital skills, critical thinking, problem solving, teamwork, communication skills etc. This mismatch of skills demanded and supplied makes hiring difficult.
Key factors causing skills mismatch:
- Outdated university curriculums that are not aligned to industry needs
- Lack of vocational, technical and digital skills training for students
- Limited internships and on-the-job training opportunities
- Lack of research into the demand and supply of skills in the labor market
As a result of the skills mismatch, employers struggle to find suitable qualified candidates while job seekers struggle to find jobs matching their skills.
Slow Economic Growth
Nigeria’s GDP growth slowed to just 2.2% in 2019 down from 1.9% in 2018. For an economy with a fast rising population and the need to create millions of new jobs annually, this growth rate is far too low. Slow economic growth directly translates to low job creation and high unemployment.
Key reasons for Nigeria’s weak economic growth include:
- Volatile global oil prices
- Weak investor confidence
- Macroeconomic instability – inflation, exchange rate fluctuations etc
- Infrastructural deficits – especially electricity
- Regulatory constraints
- Security challenges
Unless Nigeria can achieve consistent robust annual GDP growth of at least 5-7%, job creation will remain lackluster.
Lack of Job Opportunities in Rural Areas
Over 60% of Nigerians live in rural areas which tend to have very limited employment opportunities. Agriculture remains the mainstay of rural economies providing subsistence employment. But modern job openings in industries like services, manufacturing etc are heavily concentrated in major cities like Lagos, Abuja, Port Harcourt and Kano.
Key facts on lack of rural jobs:
- Agriculture accounts for about 90% of rural employment but is mainly subsistence based
- Manufacturing and services firms heavily favor urban centers
- Fewer schools, hospitals, banks etc in rural areas mean fewer job openings
- Poor infrastructure in rural areas increases costs and risks for businesses
For the millions of unemployed Nigerian youth in rural areas, searching for jobs in cities means added costs of transportation, housing etc. Many simply give up their job search altogether.
Corruption and Nepotism
Getting hired for a job in Nigeria often depends on “who you know” rather than “what you know”. Employers frequently engage in nepotism, favoring family, friends and those able to bribe or leverage connections. Job seekers without the right connections or money for bribes despite being qualified struggle to secure employment.
Key issues around corruption and nepotism include:
- Opaque hiring processes vulnerable to nepotism and bribery
- Lack of merit-based hiring practices
- “Man know man” culture of connections influencing hiring
- Political patronage influencing public sector job appointments
- Recruitment agencies requesting bribes to link job seekers to openings
This culture of corruption and nepotism shuts out qualified candidates without money or connections from job opportunities.
Discrimination
Discrimination based on factors like gender, age, disability, ethnicity or religion is still prevalent in Nigeria’s labor market. Job seekers from marginalized groups face additional barriers to finding work.
Key forms of discrimination include:
- Fewer opportunities for female job seekers due to gender bias among employers
- Discrimination against physically challenged job applicants
- Age discrimination limiting opportunities for older workers
- Ethnic/religious discrimination in hiring practices
Discrimination leads to higher unemployment among impacted groups as they struggle to secure jobs despite being qualified.
Lack of a Job Search Culture
The job search process is often not structured, strategic or proactive enough especially among youth job seekers. Many expect to find jobs passively through connections rather than actively applying to openings, networking and selling their skills to employers.
Key gaps include:
- Overreliance on networks like family, friends or politicians rather than active job search initiatives
- Lack of skills in using job search platforms, tailoring applications, interviewing etc
- Not enough initiative to seek out and apply to available job openings
- Weak personal branding and inability to package skills to employers
Cultivating disciplined, strategic job search skills could significantly increase chances of finding employment.
Limited Use of Technology
The use of modern technology and tools to search and apply for jobs online is still limited in Nigeria. Many job seekers are unaware of major job search platforms or lack skills to use them effectively. Important labor market information around employment trends, openings, skill needs etc is not efficiently generated and disseminated.
Key technology gaps include:
- Low awareness and use of job search sites like Jobberman, Ngcareers etc
- Limited information on real-time labor market needs and opportunities
- Technology and digital skills gaps limit online job search effectiveness
- Most available jobs never get advertised online
Greater leveraging of technology and the internet could significantly expand job search prospects.
Conclusion
In conclusion, Nigeria’s high unemployment rate is driven by interlinked factors like high population growth, sluggish economy, skills mismatch between employers and job seekers, lack of opportunities in rural areas, corruption, discrimination and suboptimal job search approaches and tools.
Tackling this complex challenge requires coordinated interventions including:
- Accelerating economic reforms to drive stronger, job-rich growth
- Revamping education and training systems to develop skills aligned to labor market needs
- Improving rural infrastructure and business environment to boost rural jobs
- Instituting transparent digital systems and merit-based practices in hiring
- Utilizing technology and data to make job search more effective
With the right strategies and policies, Nigeria can boost job creation and ease the transition of its rising youth population into productive employment. But political will and urgent execution is crucial.