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1.1              BACKGROUND OF THE STUDY

According to the central bank of Nigeria (2003) the National rate of Unemployment rose from 4.3% in 1970 to 6.4% I 1980. The high rate of Unemployment observed in 1980 was attributed largely to depression in the Nigeria economy during the late 1970’s specifically, the economic down town led to the implementation of stabilization measures which included restriction on export, which caused import dependency of most Nigeria Manufacturing enterprises, which in turn resulted in operation of many comprises below their installed capacity. This development led to the close down of many industries why the survived few were forced to retrench a large proportion of their work force.

Furthermore the Nigeria Government also placed an embargo on employment, it is important to state here that the structural adjustment programmed (SAP) adopted in 1986, had serious implication on employment in Nigeria as the rate of Unemployment declined from 2.1% in 1982 to as low as 1.8% in 1995 after which it rose to 3.4% in 1996 and lowered between 3.4 and 4.7% between 1996 and 2006.

According to a survey of 1974 reported by Aigbokham (2000). Graduate Unemployment account for less than 1% of the Unemployment in 1974, the proportion rose 4% for urban areas and 2.2% in the rural areas. It is impressive to note here that in 2003, Nigerian Unemployment rate declined substantially to 2.3% this declined was attributed to the various government effort aimed at addressing the problems through poverty alleviation programs.

Recently, the federal government accepted word bank figure of 40million, 28.57% unemployed people in Nigeria though there were no details of how the bank arrived at that Figure the admission by the ex-monitor of labour, prince Adelokumbo, Kayode that we do have such an Unemployment crisis is enough to give credence to the report.

One of the pressing challenges facing the Sub - Saharan African economies today is the trend of unemployment that is on the increase over the years. Unemployment is one of the major challenges facing developed and developing countries. As it is been usually phrased, the phenomenon of graduate unemployment (GU) in the developing countries constitute an unusual problems to labour market and the general economy of these countries. In the opinion of Oye, Ibrahim and Ahmad (2011), the state of unemployment demoralizes and increases the need of those who are able and enthusiastic to work but cannot find jobs. Unemployment is a global phenomenon, but it is more prevalent in most developing countries of the world, with resultant social, economic, political and psychological consequences (Ayinde, 2008; Emeka, 2011). Nigeria’s current unemployment situation is erratic and fall short of expectations, such that a large percentage of educated, able and qualified citizens cannot secure paid employment (Omotosho, 2009). This indicates that Nigeria over the years has steadily crumbled from its extremely resilient and esteemed position among developing nations (Ipaye, 1998). One of the major concerns of various administrations in Nigeria is the growing rate unemployment in the country and it has consistently form part of the macroeconomic objectives of the government for the past decades (Omotosho, 2009). According to the World Bank Report (1993), the growing trend of employment and productivity of the Asian Tigers and Japan is responsible for their enviable and brilliant economic performance. Evidently, absence of the necessary framework to enhance employment and productivity level in Nigeria is the sole cause of the retard nature of Nigeria, the acclaimed giant of Africa. The trend and problem of unemployment in Nigeria remains obstinate with a tendency of growing geometrically to alarming rate of 3 million unemployed youth annually (Adelodun, 2006). The trend of unemployment in Nigeria has a devastating effect on the youths from an extensive gamut of socioeconomic clusters, both the highly and less educated, even though it has mainly troubled a sizeable portion of youths from less privilege backgrounds (Ipaye, 1998). According to Adebayo and Ogunrinola, (2006), unemployment trend in Nigeria touches the job seekers within the ages of 20 – 24 and 25 – 44 years more while there is fewer prevalence of unemployment within the ages of 15 – 19, 55 – 59 and 65 years and above. The rate of open unemployment was 12% in March 2005; it rose to 19.7% in March 2009 while the rate of underemployment hovered around 19% in 1998 (National Bureau of Statistics, 2010). From this point of view, it is apparent that unemployment, particularly the unemployment of young graduates, hinders Nigeria’s progress in so many ways. Aside from economic issue, it also creates eminent danger for political stability of our dear country (Ipaye, 1998). Consequently, massive unemployment as it is presently recorded in Nigeria portends a serious multifaceted problems and the threat of unemployment has gradually been acknowledged as a pressing challenges facing Nigeria (Ipaye, 1998, Udu & Ugu, 2005). According to Umaru and Zubairu (2011), unemployment has been recognized as one of the major impediments to social-economic growth in most developing countries. It reduces the aggregate output of the economy and results in underutilization of human resources. The need to avert the negative effects of unemployment has made the tackling of unemployment problems of feature very prominently in the development objective of developing countries (Omotor & Gbosi 2006). The issue of real output and employment growth in developing nations is a sine qua non for poverty reduction and a more equitable income distribution (Fofana, 2001). Omotor and Gbosi (2006) noted that the seriousness and nature of unemployment in Nigeria is relatively high when placed on the same pedestal with those of other African countries. According to them, in absolute terms; it is estimated that there are presently about 22 million youths unemployed in Nigeria.


Unemployment constitutes a serious socio-economic problem in Nigeria and is really a tragic condition that requires urgent and proactive attention. Indeed, it is alarming and worrisome to observe that Nigeria’s graduates who are educated, able and willing to work cannot find jobs. The situation is becoming hopeless, as the rate of unemployment keep rising without any proactive attempt to curb the menace (Kayode, Samuel & Silas, 2014). A cursory look at the state of the nation, portend more danger with declining likelihoods of young graduates becoming gainfully employed; going with the trend of events in the country, most especially, the falling oil prices, economic recession, insurgence in the Northern parts of the country among other factors. As a matter of fact, unemployment is one of the major developmental challenges facing Nigeria at the moment (Ipaye, 1998). Obadan and Odusola (2010) have found that the prevalence of unemployment in Nigeria especially in this 21st century is getting deeper and more pathetic, spiteful through all faces of age groups, educational level and geographical spread. The challenges of lingering unemployment are very obvious in Nigeria, because every year thousands of graduates are turnout for whom there are no job opportunities (Emeka, 2011). Nigerian labour markets are beleaguered with youth hawkers who typically would have found beneficial employment in some organizations (Echebiri, 2005; Uwoma, 2006). Given the large percentage of unemployed youths, the trend of unemployment is capable of destabilizing peace as they portend a serious threat in view of nascent democracy and blatant disregard for party politics (Adepegba, 2011). Unemployment has negative consequence on the physical well-being of the peoples. The unemployed have high tendency to experience such feelings as downheartedness, melancholy, anger, acrimony and mortification (Goldney 1997). In addition, different form of misconducts like deceit, fraud, robbery and ferocity usually occur in a society with large number of unemployed populace. Compounding the challenges further is the absence of reliable statistics on the level of unemployment, as no organization has so far produced precise figures presenting the current unemployment rate in Nigeria (Udu & Agu, 2005), as in most occasion, the figures released by National Bureau of Statistics, and the World Bank, appeared contradictory. A review of extant reveals that most studies conducted on Nigeria’s employment nature and structure situation have been largely devoted to unemployment and its determinants and/or its impacts on economic growth (Adebayo & Ogunrinola, 2006; Omotor & Gbosi 2006). However, to the best knowledge of this work, not much research attention has been given to the investigation of socioeconomic effects of unemployment in Nigeria. It is at the backdrop of the aforementioned challenges that the researcher embarks on the study to determine the impact of unemployment on the socio economic development of Nigeria.

1.3              OBJECTIVE OF THE STUDY

This research work was picked up with the following objectives.

1.   To identify the causes of Unemployment in Abuja Municipal Area Council Local.

2.   To determine the impact of Unemployment in Abuja Municipal Area Council Local.

3.   To proffer solution to the Unemployment problem in Abuja Municipal Area Council Local.

4.   To determine the relationship between unemployment and socio-economic development of Nigeria.



Ho: There is no relationship between unemployment and Nigeria’s socio-economic development

Hi: There is a relationship between unemployment and Nigeria’s socio-economic development


Ho: unemployment has a negative impact on Nigeria’s development

Hi: unemployment has a positive impact on Nigeria’s development


The Findings of this work will help young graduates to know that white collar jobs are not the only means of survival.
It will also serve as a guideline to them on the best way to live instead of engaging in social vices and also provide them with some ways of being self-employed and even employ other. To the government, it will discourage and also try to provide solution on how to dictate ghost workers in some parastatals and discourage the politicians from using graduates to cause social vices in the name of achieving political ambition. Furthermore, this researcher will be useful to other researchers who intend to embark on similar work.


This study is primary concerned with the impact of unemployment on the socio economic development of Nigeria. This study/project work covers the 4 selected areas in the Abuja Municipal Area council, namely; Wuse, Garki, Maitama and Gwarimpa. The researcher encountered some constraints, which limited the scope of the study. These constraints include but are not limited to the following;

 a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study   

b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.


The following terms are defined as they are used in the study:

IMPACT: The possible effect or result of something or an action or decision.

UNEMPLOYMENT: The act of not having a work or the act of staying idle, not having a job.

EMPLOYMENT: The state of being employed is when work is being done in other to earn money. It can also be seen as the act of being employed in an institution or organization to perform some certain duties and earn money at the end.

ECONOMY: The relationship between production trade and supply of money in a particular or region.

SOCIETY: Particular communities of people, who share the same customs laws, believe etc.

DEVELOPMENT: Improvement of something that is being regarded to the gradual change or growth of something that it becomes more advance.


This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concerned with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study    

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