Chapter One

Introduction

1.1 Background To Study

Unemployment remains one of the most pressing global challenges of the 21st century, with

profound economic, social, and political implications. Globally, the International Labour

Organization (ILO) estimated that the unemployment rate stood at 5.0% in 2023, translating to

approximately 191 million people without jobs worldwide (ILO, 2023). This figure reflects a

modest decline from 5.3% in 2019, before the COVID-19 pandemic exacerbated labor market

disruptions, pushing unemployment to a peak of 6.5% in 2020 (ILO, 2020). The World Bank, in

its 2023 "Jobs Report," emphasized that unemployment disproportionately affects youth and

marginalized populations, with youth unemployment rates nearly three times higher than those of

adults, averaging 13.8% globally in 2022 (World Bank, 2023). This disparity underscores the

urgency of addressing unemployment through targeted interventions like skills acquisition,

which has emerged as a critical strategy for enhancing employability and fostering economic

resilience.

In Sub-Saharan Africa, unemployment remains a persistent challenge, compounded by

rapid population growth and limited formal job opportunities. The African Development Bank

(AfDB) reported in 2022 that the region’s unemployment rate averaged 7.1%, with youth

unemployment soaring to 14.5% (AfDB, 2022). Nigeria, Africa’s most populous nation,

exemplifies this crisis. According to the National Bureau of Statistics (NBS), Nigeria’s

unemployment rate surged from 23.1% in 2018 to 33.3% in 2020, stabilizing at 5.3% in Q1 2024

when adjusted for methodological changes (NBS, 2024). The World Bank (2023) estimates that

41.7% of Nigerians live below the international poverty line of $2.15 per day, a figure closely
tied to unemployment and underemployment trends. ). This alarming trend has been attributed to

factors such as rapid population growth, inadequate educational systems, and a mismatch

between skills supplied by educational institutions and those demanded by employers.

Nigeria's unemployment crisis is deeply rooted in structural and systemic issues. The

country's reliance on oil revenues has stifled diversification and industrialization, limiting job

creation in non-oil sectors. Furthermore, the educational system has been criticized for its

emphasis on theoretical knowledge at the expense of practical skills. According to a study by

Adebayo and Ogunleye (2020), only 20% of Nigerian graduates possess skills that are directly

relevant to the labor market. The Nigerian government has implemented various initiatives to

address these challenges. The National Directorate of Employment (NDE) and the Industrial

Training Fund (ITF) have launched programs aimed at promoting skills acquisition and

entrepreneurship. However, these efforts have been hampered by inadequate funding, poor

implementation, and a lack of coordination among stakeholders. A report by the World Bank

(2022) noted that only 10% of Nigerian youths have access to formal vocational training,

highlighting the need for more inclusive and effective interventions. The situation is further

complicated by rapid population growth, projected to reach 400 million by 2050, intensifying the

demand for jobs.

In as much the rate of unemployment in Nigeria rapidly increases, Okolocha et al. (2019)

highlighted that incompetence of Nigeria graduates, who often lack practical skills despite

academic qualifications, has been a significant barrier to employability of youths. Similarly,

Patrick (2022) notes that the societal emphasis on formal education and white-collar jobs has

discouraged youth from pursuing vocational training, increasing the cycle of unemployability.
The COVID-19 pandemic worsened this scenario, disrupting education, reducing budgetary

allocations to critical sectors, and stalling economic activities (Jacob et al., 2020).

Skills acquisition refers to the process of gaining practical, technical, or vocational

competencies that enhance employability or self-reliance. In the Nigerian context, it

encompasses formal vocational training, apprenticeships, and informal learning aimed at

equipping individuals with market-relevant abilities. Iwueke et al. (2020) describe skill

acquisition as a transformative tool that improves productivity, mostly in the informal sector.

Similarly, Okadi et al. (2021) conceptualize apprenticeships as a form of work-based training

that promotes continuous learning and adaptability-key attributes in a dynamic labor market.

Skill acquisition is necessary for the increase of productivity in the labor market. Okolocha

et al. (2019) stated that skills acquisition bridges the gap between education and employability,

particularly for youths who may not excel academically but possess latent talents in trades like

carpentry, tailoring, or digital technology. Similarly, Ijieh (2020) posits that entrepreneurial skills

acquisition fosters economic growth by promoting self-employment and small-scale enterprises,

which are vital in an economy with limited formal sector jobs. These perspectives align with the

World Economic Forum’s (2019) assertion that skills development enhances productivity in the

economy, and significant sector of Nigeria’s labor market.

Recognizing the unemployment crisis, successive Nigerian governments have

introduced skills acquisition initiatives to empower youth and reduce joblessness. The National

Directorate of Employment (NDE), established in 1986, is a flagship program aimed at tackling

unemployment through vocational training. Ekong and Ekong (2016), in a study revisited in

2020, found a positive link between NDE’s skills acquisition efforts and unemployment

reduction in Akwa Ibom State between 1987 and 2012. However, they noted mixed results
regarding income contributions, with 48% of respondents affirming a positive impact and 40%

perceiving minimal influence, suggesting implementation challenges (Ekong & Ekong, 2020).

Another notable initiative is the National Youth Service Corps’ (NYSC) Skills Acquisition and

Entrepreneurship Development (SAED) program, introduced in 2012. This scheme seeks to

sensitize and train young graduates in entrepreneurial skills during their mandatory service year

(Oyebanji et al 2023).

1.2 Statement of Problem

Despite its potentials, skills acquisition faces numerous hurdles in Nigeria. Local

government in Nigeria are expected to initiate training and skills acquisition training for youths.

However, Nsukka Local Government, like many others, faces significant hurdles in enhancing

skill acquisition and training. Oyebanji et al. (2023) identify lack of access to credit and poor

infrastructure as major impediments acquiring and translating skills into entrepreneurial

ventures. He further explained that funding constraints also limits the scalability and quality of

training programs. This means that overtime local government lacks proper infrastructure for

enabling skill acquisition and lack of adequate funding by the local government has also being a

major factor that has undermined the availability of an effective skill acquisition training.

Similarly, Idoko et al. (2021) highlight the lack of well-equipped training centers, financial

support, and qualified instructors limits the quality and impact of skills programs. His main focus

is on the lack of qualified tutors, as it affects the effectiveness and quality of skills acquisition

programs. Local government due to their financial capacity most times may not recruit qualified

tutors for the initiated skill acquisition training.

additional barriers. He also highlights that gender inequalities also persist, with women facing

greater barriers to skills acquisition due to early marriage and cultural norms. Most times the

culture or norms of a particular set of people in the local government may tamper with

accessibility and availability of skill acquisition. They further stated down that in most region

gender inequality has been a significant factor which makes women not to partake in the skill

acquisition programs. These challenges highlight the need for a holistic approach that addresses

training and job creation factors.

Although several studies have examined skill acquisitions and reduction of unemployment

in local government, there remains a gap in understanding the specific challenges affecting

unemployment reduction in Nsukka Local Government Area. This study seeks to bridge the gap

by examining the relationship in skills acquisition and unemployment reduction within Nsukka

Local Government Area from 2020-2024. Based on these identified gaps, the following question

have been formulated to guide this study:

1. To what extent has skills acquisition impacted the employment rate in Nsukka Local

Government Area?

2. What are the challenges that undermine effective skill acquisition programs in Nsukka?

3. To what extent have local government initiatives in skill acquisition program contributed

to reducing unemployment in Nsukka?

1.3 Objectives of the Study

The broad objective of the study is to investigate the relationship between skills

acquisition and employment rates in Nsukka Local Government. The specific objectives of the

study are to:

2. Evaluate the challenges that has undermined effective skill acquisition programs in Nsukka.

3. Examine to what extent local government initiatives in skill acquisition contributed to

reducing unemployment in Nsukka.

1.4 Significance of the Study

The study has both theoretical and empirical significant. Theoretically, the conceptualization of

the study key words and the research itself will adds to the body of knowledge, providing data to

academics and future researchers who would embark on related study in the future. Furthermore,

data contained in this work is of immense usefulness to futuresearchers who would be

conducting research in similar area of the study.

Empirically, the recommendation made in this study goes a long way to familiarize the rural

dwellers with the effectiveness of skill acquisition toward reduction of unemployment in Nsukka

Local Government Area. This goes a long way in facilitating local government to speed up

implementing skills acquisition training by addressing the challenges of skill acquisition in the

study area. Again, studying the role of local government unemployment reduction in Nigeria

helps to highlight the importance of skills acquisition training. Nsukka local government often

work closely with local communities, involving them in decision-making processes and capacity-

building activities. Understanding the dynamics of this partnership can provide valuable insights

into how to foster effective skills acquisition programs for youths and ensure reduction of

unemployment. Finally, this work is of great significance to the officials of Nsukka local

government area because, this work is relevant in matters relating to the strategic roles of the

local government advancing skill acquisition in the study area.

1.5 Scope of the Study

Nsukka Local Government Area of Enugu State, covering the period from 2020 to 2024. The

choice of this timeframe is informed by the increasing emphasis on rural development and

economic empowerment initiatives within Nigeria, particularly in the wake of nationwide

campaigns promoting self-sufficiency and job creation.

The study focuses on the various activities undertaken by the Nsukka Local Government

to address unemployment, including the provision of basic infrastructure, organization of skills

acquisition training, and the introduction of economic activities aimed at enhancing self-

employment opportunities. It seeks to evaluate the effectiveness of these initiatives in equipping

individuals with relevant vocational and entrepreneurial skills, thereby reducing unemployment

levels within the local government area.

Additionally, the study aims to assess the extent to which these initiatives have contributed

to economic growth and social development in Nsukka, drawing comparisons with similar

interventions in other regions. Furthermore, it identifies the key challenges faced by the local

government in implementing these programs, such as funding constraints, inadequate facilities,

and sustainability issues.

By examining these aspects, the study provides insights into the role of local governments

in unemployment reduction through skills acquisition and offers recommendations for improving

the effectiveness of such initiatives in Nsukka and other local government in Nigeria.