Degrees, Dreams, and Dead Ends: Inside Nigeria’s graduate employment crisis

By Matthew Ogunwale 

When Tosin Eniolorunda recently disclosed that his fintech company, Moniepoint, was struggling to fill about 500 vacancies in Nigeria, the statement triggered outrage, debate, and soul-searching across the country.

‘At a time when millions of young Nigerians are unemployed or underemployed, how can a leading fintech company say there are no qualified people to hire?’ many asked.

Speaking at an event in Lagos, Eniolorunda said the company had deliberately decided to focus its hiring within Nigeria but was still unable to find enough qualified candidates. We decided that we will no longer hire from anywhere other than Nigeria. We have maybe 500 vacancies, and we are struggling to find people to fill those roles.’

The comments exposed a contradiction at the centre of Nigeria’s labour market: companies complain of talent shortages, while graduates complain of unemployment.

Yet beyond the public outrage lies a deeper and more complicated crisis involving employability, outdated education systems, skill gaps, poor wages, unrealistic hiring demands, brain drain, and the rapidly changing nature of work in the digital economy.

Nigeria continues to battle unemployment despite recent statistical improvements. According to Statista, Nigeria’s unemployment rate stood at about 2.99 per cent in 2024, although critics argue that the figures do not fully capture underemployment and the realities of informal labour. Data from the National Bureau of Statistics report cited by Reuters also showed that youth unemployment and underemployment remain significant concerns, especially among people aged 15 to 24. While official numbers suggest improvement, many graduates say the reality on the ground tells a different story.

The fresh graduate view: ‘theoretical capacity, practical incapability’

For recent graduates, the corporate narrative that ‘talent is scarce’ feels less like an economic reality and more like a systemic betrayal. Having spent years enduring academic strikes, overcrowded lecture halls, and rigorous grading systems, many discover that their degrees hold little currency in the modern digital economy.

Jireh Gboluwaga Nuga, a recent graduate of University of Lagos told The Lagos Voice that the university only prepared him with the theoretical knowledge of the usual routine. ‘There’s intellectual capacity training but practical capability is very low.”

For Nuga, the transition from corporate ambition to post-graduation reality was an abrupt awakening. Despite proactively hunting for opportunities before completing her studies, she hit an unexpected, systemic roadblock: the mandatory National Youth Service Corps (NYSC) certificate.

‘Most organisations were not ready to offer today’s corporate jobs to graduates without the NYSC certificate,’ Nuga explains.

“And even if they did, the level of placement was so discouraging. At that point, I got angry and disappointed. Why would I spend years in university and come out only to be delayed getting a good job because of a certificate,” Nuga added.

Faced with job descriptions demanding years of experience that she calls ‘unrealistic compared to my level,’ Nuga opted to pivot. Instead of chasing unreachable entry-level roles, she chose to focus on personal growth, volunteering, and internships to bridge the gap.

Notably, she acknowledges that the blame does not rest solely on universities. “The aspect of students developing themselves is also key. Sometimes, it’s not even the school’s fault; it’s individuals who intentionally choose to remain undeveloped. No company will take in graduates who are not personally developed,” she said.

Also, Ifeoluwa Popoola, a recent graduate of Obafemi Awolowo University, Ile-Ife reacted to the premium rejections she has faced. “It’s been crazy. One moment you are pumped; the next moment, you are reading your rejection mail with shaky hands.”

Popoola’s experience highlights the psychological toll of the modern job search. As a creative writer, editor, and content strategist, she credits her literature courses with shaping her creative world and giving her the liberty to express herself. Yet, translating those skills into sustainable corporate employment has felt like an uphill battle against a system structured for an older generation.

“I do get very discouraged when I see things like: ‘7 years of experience needed.’ It’s like the job market is not designed for new graduates. This system is designed for older people. They are not giving youths a chance to work and get the needed professional experience,” Popoola asserts.

When asked why companies claim they cannot find workers, Popoola points to a deep-seated institutional distrust and structural nepotism. “Brutally, I think it is a trust issue. These companies do not believe youths or graduates can handle things better. Aside from that, many are still unemployed because they do not have ‘long legs’ [connections]. There are talents out there being denied a chance to work because they lack nepotistic networks.”

The Academic View: The shift from ‘read and pass’ to practical skills

While graduates critique the ivory tower, university administrators argue that systemic overhauls are actively underway, even as they battle deeply entrenched student habits and structural challenges.

According to Professor Babatunde Lawal, Professor of Accounting and Finance, McPherson University. who spoke to The Lagos Voice said that the root cause of graduate unemployability stems from a fundamental flaw in how students approach higher education: a phenomenon he terms RAP vs. RAU.

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“The main reason is that students Read and Pass (RAP), not Read and Understand (RAU). This is so because students want to impress one another by competing for positions. When you read and pass, it is temporary. When you read and understand, it is permanent.”

Professor Lawal emphasises that a major gap exists between a student’s class of degree and their actual technical capacity. “Nigerian graduates are so focused on the class of degree they graduate with, rather than being able to defend it. Examination is not the best way of bringing out the best in a student; it is merely a test of knowledge.”

Furthermore, Lawal cites a deficit in soft skills and institutional ethics. “Another reason is that some Nigerian graduates lack character. Before a student can be called a graduate, he must be found worthy both in character and learning. Character comes before learning.”

Lawal insists that regulatory bodies are taking action, saying; “The National Universities Commission (NUC) has mandated vocational and digital skill acquisition across all disciplines, and universities are increasingly utilising the Core Curriculum and Minimum Academic Standards (CCMAS) to enforce uniform quality.

Professor Lawal also added that universities have embraced Learning Management Systems (LMS), hybrid teaching via Zoom and Microsoft Teams, and virtual oral defences to better align with the digital economy.

The startup founder’s view: ‘A pipeline problem’

For Caleb Pamilerin Sobaloju, founder of Fluxt, the contradiction between unemployment and talent shortages is not surprising. “It looks like a contradiction on the surface, but it’s really a pipeline problem,” he told The Lagos Voice. 

According to Sobaloju, Nigerian graduates often possess academic qualifications but struggle with practical execution in real work environments. “The biggest gap I see is practical execution skills,” he explained. “A lot of young Nigerian job seekers graduate with theoretical knowledge but struggle with real-world application.”

He identified communication, problem-solving, ownership, critical thinking, and independent work as some of the most missing competencies among applicants. “There’s also a noticeable gap in digital and technical skills,” he added. “Many people are not exposed early enough to tools, workflows, and standards used in modern companies, especially startups and global teams.”

Sobaloju stressed that the issue is not about intelligence. “Nigerian youths are incredibly smart,” he said.

“The issue is that our systems often do not prepare them for the demands of modern work. The startup founder also argued that universities are struggling to keep pace with changes in the global economy.

“Nigerian universities are still very good at teaching theory and academic discipline,” he said. “But they are often disconnected from the realities of today’s job market.” According to him, many graduates leave school qualified on paper but underprepared for execution. “The world of work is changing much faster than university curricula,” he explained.

However, Sobaloju insisted universities are not entirely responsible for the crisis. “Students also need to take more ownership of their learning outside the classroom,” he said, pointing to internships, projects, online learning, and professional communities as critical pathways for skill development.

The corporate HR view: It’s an ‘employable skills’ deficit, not a lack of talent 

To understand why a company like Moniepoint has 500 vacancies sitting empty while top-tier graduates accumulate rejection letters, one must look at how the modern corporate ecosystem evaluates candidates.

Speaking on the condition of anonymity, a veteran Human Resources Expert clarified the vital distinction between inherent talent and operational capability.

Talent vs. Employable Skills

“It is a lack of employable skills, not a lack of talent. If these people are groomed, they will know better.” The HR expert explains that ‘talent’ represents raw potential, whereas ‘employable skills’ represent the baseline digital literacy and strategic thinking required to execute a corporate role on day one.

“If you are in human resources management and you don’t know basic skills like Excel, Microsoft Office, and some AI tools, you don’t have employable skills, let alone talent,’ the expert states. ‘The employable skill is the bedrock, and talent is basically having that and more, being able to bring input for greater output.”

The global standard variance 

The expert notes that the friction arises primarily among high-value, strategically positioned firms operating on a global scale: mid-sized/local firms can often utilize raw graduates for basic operations. “An accounting intern here might handle basic ledger balancing and gain standard exposure to local pensions and statutory benefits.”

“High-value/Global Tech Firms require a global skill set. They need applicants who possess strategic business orientation, advanced technical competence, and high-level behavioural attributes like task prioritisation, efficiency, and advanced communication.”

Certificates vs. Portfolios 

The HR expert says the market is shifting. “It depends on the role you are sourcing for. If I am sourcing someone in Graphics or UI/UX, your certificate boosts your thinking, but I want to see your portfolio. If you are going for a sales role, I want to see how you present yourself, your interpersonal skills, and your technical agility.”

“Today, recruitment increasingly relies on rigorous pre-employment practical assessments and AI-literacy evaluations rather than resume titles alone,” He added.

A labour market in transition 

Analysts say Nigeria’s employment crisis reflects a broader mismatch between education and the modern economy. While universities continue producing thousands of graduates yearly, the labour market increasingly rewards practical experience, digital literacy, adaptability, and problem-solving skills.

At the same time, economic hardship and the ‘japa’ migration trend have created another paradox: highly skilled Nigerians are leaving the country, while companies struggle to replace them locally. For many graduates, frustration is growing over a system that demands years of experience from people just entering the workforce. For employers, however, the concern is productivity and readiness in an increasingly competitive economy.

The debate sparked by Eniolorunda’s comments has therefore become more than just a conversation about vacancies at a fintech company. It has become a reflection of the widening disconnect between Nigeria’s education system, labour market, and economic realities.

And until that disconnect is addressed, many fear the country may continue producing graduates for jobs they are not fully prepared to do, while employers continue searching for talent they cannot easily find.