The Impact of Youth Unemployment on Economic Development in Nigeria

ABSTRACT. Unemployment in Nigeria has affected the teeming population of the youths and the economic development of the country. It is obvious that unemployment especially among the graduates impedes Nigeria progress in several ways. Apart from the economic waste it brought to the nation, it is also responsible for political unrest in crime and other social vices experienced in our society in recent times, among others. This study seeks to examine the impact of youth unemployment on economic development in Nigeria. The study employed annual time series data sourced from the Central Bank of Nigeria and World Development Indicators. Economic development was proxied by per capita GDP. The classical ordinary least squares multiple regression technique was used to analyze the data. It was revealed that a negative relationship exists between youth unemployment and economic development in the estimated model. Hence, the study recommends that; the government should create more job opportunities, empowerment, and enabling environment for youth to be more productive by making policies that are capable of reducing the youth unemployment rate in the country so as to improve economic growth and development. The government should invest more in education by providing long lasting free education, build more tertiary schools, pay teachers as at when due and provide adequate infrastructure so as to boost education, as quality education will provide youths with employable skills so as to contribute effectively in the labour force. There is an urgent need by the government to diversify from our monolithic economy in conjunction with foreign investors should embark on exploration of large mineral deposits in the country. This will accommodate large number of unemployed youths in the country. Government of all levels should encourage the teeming population of youth to actively participate in agriculture by providing loans, grants and other farm inputs such as fertilizers, improved verities of seedings, and hence youths should be taught on modern farming techniques.