The World Bank has issued a strong caution to Nigerian authorities over the deepening crisis of youth unemployment and chronic underinvestment in human capital, warning that the country’s long term stability is at risk without swift and inclusive economic reforms.
In its newly released Nigeria Development Update, the international lender stressed that Nigeria’s survival hinges on pursuing economic growth that directly benefits the country’s poorest and creates sustainable employment, particularly for its swelling population of young people. “Nigeria is poised to seize a powerful potential demographic dividend, provided it makes investments in human capital in tandem with creating jobs and growth,” the report stated.
The Bank underscored that a nation’s ability to generate productive work depends heavily on the strength of its human capital, the education, skills, and health of its people. “Accumulation of human capital determines whether people work and, if they do, how productive they are, increasing disposable incomes,” it said.
However, decades of weak investment in core public services are now surfacing as barriers to future growth. “Today’s youth jobs challenge can be found at least in part in the shortcomings of delivery systems a generation ago. Future growth prospects hinge on urgently closing access and quality gaps for families in healthcare, nutrition, education, water and sanitation, and social protection,” the Bank warned. The report highlighted that while Nigeria’s labour force is expanding rapidly, the economy’s ability to absorb new workers with decent jobs is lagging dangerously behind. It cautioned: “Without jobs and human capital development, too many young people will lack opportunities, creating risks of fragility and loss of social cohesion.”
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The World Bank has repeatedly called on the government to prioritise inclusive growth strategies as the foundation for national development. “To succeed, the economy has to grow at a faster pace, but also in a more inclusive way,” the report said. “Not only must the economy grow faster, but it also needs to grow in such a way as to generate jobs and opportunities for the Nigerians who need it most: the poorest and least prosperous.”
This stern message arrives as Nigeria battles deepening economic turmoil, with soaring inflation squeezing households and driving many small businesses, long regarded as the backbone of the nation’s workforce, into closure due to worsening operating conditions.
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