Widening skills gap keeps millions of Nigerians jobless

In 2023, a manufacturing company in Lagos sought the services of two chemical ecologists for over six months.

Its managers went from one university to another, one polytechnic to another but could not get anyone.

After a fruitless search, the firm ended up importing the skills from India.

Many Nigerians are unable to secure employment today because they do not have the required skills needed by the industry.

The 2025 Lagos Economic Development Update highlights a paradox in the labour market. On average, monthly labour demand stands at 2,837 job vacancies, while the supply includes 3,318 jobseekers.

However, 816 jobseekers, making up 26 percent, lack both education and experience, reducing the pool of employable candidates to 2,502 individuals. The LEDU report shows that while jobseekers flood the market, employers struggle to find qualified candidates to fill key roles.

“While there are job openings, businesses cannot find candidates with the right skills,” said Ope George, Lagos State’s commissioner for economic planning and budget.

Numbers tell the story

Nigeria’s unemployment rate stood at 4.3 percent in the second quarter (Q2) of 2024, according to the National Bureau of Statistics (NBS), a sharp drop from 33.3 percent in 2021 after the government adopted a new methodology.

However, labour market experts argue that underemployment and informal work mask the true extent of joblessness. The World Bank estimates that 23 million Nigerians were either unemployed or underemployed in 2023, many of them young people.

More alarming is the mismatch between education and job market demands. A report by the Jobberman Foundation found that six out of 10 Nigerian graduates lack the necessary skills for available jobs.

Meanwhile, industries such as technology, renewable energy and manufacturing struggle to find qualified professionals, forcing companies to recruit from abroad or invest heavily in staff training.

The reality for job seekers

For Michael Olaniyi, a 28-year-old graduate of Business Administration, job hunting has been a frustrating journey.

“I have applied for over 200 jobs in the past two years, but I barely get responses. The few interviews I have had often end with, ‘you lack the required experience or technical skills,’” he said.

Olaniyi’s experience mirrors that of many Nigerian graduates, who find their academic knowledge insufficient for industry.

The challenge is even steeper in fields that require specialised training. In the fast-growing tech industry, for example, Nigeria’s demand for software developers, data analysts and cybersecurity experts has outpaced supply.

“We receive hundreds of applications for tech roles, but only a small fraction of candidates have the needed competencies,” said Chijioke Obi, HR manager at a Lagos-based fintech firm.

Why skills gaps persist

Nigeria’s university curriculum has remained largely unchanged for decades, with little emphasis on practical or digital skills. While some private universities and polytechnics have introduced more industry-relevant courses, public institutions lag behind due to bureaucratic bottlenecks.

Many young Nigerians see traditional university degrees as the only path to success, neglecting vocational and technical education. Yet, industries such as construction, automotive technology, and renewable energy desperately need skilled workers.

Countries like Germany and China have successfully reduced unemployment by strengthening technical education, a model Nigeria has yet to fully adopt.

The private sector is not deeply involved in shaping academic curricula, resulting in a disconnect between what students learn and what employers need.

“Companies should partner with universities to offer internships and hands-on training, but this rarely happens,” said Aisha Bello, an Abuja-based education consultant.

While digital skills training programmes exist, they are often expensive. A standard coding boot camp in Nigeria costs between N200, 000 and N1 million, which is out of reach for many job seekers. Government-funded training programmes are either too few or lack quality, leaving self-learning as the only option for many aspiring professionals.

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‘Dire consequences’

“If the skills gaps continue to widen, the consequences will be dire,” said Ofem Igot, an associate professor of educational management at Lagos State University.

Youth unemployment fuels crime and social unrest. It also drives migration, as thousands of Nigerians seek better opportunities abroad.

The ‘Japa’ wave—Nigeria’s brain drain trend—has already seen thousands of skilled professionals leave for the United Kingdom, Canada, and the United States, worsening the domestic talent shortages.

Beyond the growing migration, Nigeria risks falling behind in the Fourth Industrial Revolution, where nations with skilled workforce dominate global trade and innovation.

Analysts say without urgent reforms, the country could struggle to compete in key sectors like digital finance, artificial intelligence and green energy.

To bridge this gap, Nigeria must take decisive action to revamp its education system to align with industry needs, integrating more practical, digital, and entrepreneurial training, said Igot, who is the former head of the human capital unit of Lagos State University.

“Expand vocational and technical education through government funding, private sector involvement and awareness campaigns to remove the stigma around blue-collar jobs,” she said.

“Strengthen partnerships between universities and industries to create internship pipelines, mentorship programmes, and job-ready curricula,” the university associate professor added.

Hope on the horizon?

Despite the challenges, some initiatives show promise. The Nigerian government’s National Digital Economy Policy aims to train one million Nigerians in digital skills, while private-sector initiatives like the Microsoft Africa Development Center and Google’s Digital Skills for Africa are helping to close the gap. However, these efforts remain insufficient to meet the massive demand.

For Michael Olaniyi and millions like him, the dream of employment remains elusive. But with the right policies and collaborations, Nigeria can equip its workforce with the skills needed for the jobs of today and the future.