Nigeria needs three million jobs yearly, NESG tells FG

The Nigerian Economic Summit Group (NESG) has warned that Nigeria must urgently transition from an economy that records growth without sufficient employment to one that creates millions of quality jobs for its rapidly growing population. In a statement issued ahead of the 32nd Nigerian Economic Summit scheduled for October 26 and 27, 2026, the NESG emphasized the importance of translating economic expansion into sustainable employment opportunities.

The summit will focus on unemployment and strategies for tackling the country's employment crisis, particularly under its sub-theme, "Work Nigeria." Nigeria's population has surpassed 220 million, with nearly 70 percent below the age of 35, making the youth demographic a potential demographic dividend if harnessed correctly. However, the group warned that failing to generate enough quality jobs could turn this youthful population into a significant economic pressure point.

According to the NESG, Nigeria's labor market challenge is largely structural, not cyclical, with economic growth over the past two decades failing to translate into sufficient decent jobs. Key sectors like oil and gas, finance, and telecommunications, which drove much of the country's headline growth, are not labor-intensive enough to address unemployment on a large scale.

The group identified manufacturing, agro-processing, construction, creative industries, and the broader micro, small, and medium enterprises (MSME) ecosystem as sectors needing expansion to absorb large numbers of workers.

MSMEs, which account for approximately 96 percent of all businesses in Nigeria and nearly 84 percent of total employment, were highlighted as critical to resolving the employment challenge. However, they noted that the MSME sector is underperforming due to barriers such as limited access to finance, prohibitive regulatory costs, infrastructure deficits, particularly in power, logistics, and connectivity, and unclear pathways for formal operations.

The NESG emphasized that MSME formalisation, rather than being a bureaucratic exercise, is a jobs policy that would improve access to credit, social protection, and support job creation. The summit would also address the mismatch between the skills acquired by young Nigerians and those demanded by employers, advocating for demand-aligned skills development, stronger partnerships between industries and educational institutions, expanded vocational and technical education, and increased investment in digital literacy.

Beyond job creation, the NESG called for a broader examination of the labour market, including how workers access employment, how disputes are resolved, and how skills are recognized across different jobs. Measures under consideration include strengthening labour market information systems, formalising apprenticeship programmes, and expanding social insurance coverage.

The NESG stressed that the goal is to ensure Nigerians have access to decent employment with fair wages, dignified working conditions, and pathways for career advancement.