CHAPTER ONE

INTRODUCTION
1.1 Background to the Study
Entrepreneurship has emerged as a critical driver of economic growth, innovation,
and job creation globally. In many developing countries, including Nigeria,
entrepreneurship is increasingly viewed as a viable solution to the pervasive issue of
unemployment, particularly among graduates of tertiary institutions. Unemployment
among graduates is a significant challenge in Nigeria, with a large proportion of the
educated youth struggling to find gainful employment. This background section explores
the context, importance, and challenges of entrepreneurship education as a tool for
reducing unemployment among graduates in Nigeria, supported by relevant literature and
empirical data.
Nigeria, Africa's most populous country, faces a severe unemployment crisis,
particularly among its youth. According to the National Bureau of Statistics (NBS), the
unemployment rate in Nigeria rose to 33.3% in the fourth quarter of 2020, with youth
unemployment even higher at 53.4% (NBS, 2020). This alarming rate of unemployment
has been attributed to various factors, including a rapidly growing population, economic
instability, and a mismatch between the skills of graduates and the needs of the labor
market (Adebayo, 2020).
The problem of unemployment is more pronounced among graduates of tertiary
institutions. Many Nigerian graduates remain unemployed or underemployed, despite
holding qualifications from universities and polytechnics. The situation is exacerbated by
the limited availability of formal sector jobs, which cannot keep pace with the growing
number of graduates entering the labor market each year (Emeh, 2012). Consequently,
there is a pressing need for alternative strategies to address the unemployment crisis.
Entrepreneurship education has been identified as a potential solution to the
unemployment problem in Nigeria. It involves teaching students the skills and knowledge
required to start and manage their own businesses. By equipping graduates with
entrepreneurial skills, it is believed that they can create their own employment
opportunities and even generate jobs for others (Okolie, 2014).
The Nigerian government, recognizing the importance of entrepreneurship
education, has integrated it into the curriculum of tertiary institutions. The National
Universities Commission (NUC) mandated the inclusion of entrepreneurship courses in
all Nigerian universities in 2006, with the aim of fostering an entrepreneurial mindset
among students (NUC, 2006). Similar initiatives have been implemented in polytechnics
and colleges of education. The integration of entrepreneurship education in Nigeria’s
tertiary institutions is a relatively recent development. Historically, the Nigerian
education system was primarily focused on producing graduates for white-collar jobs in
the public and private sectors. However, the economic downturns of the 1980s and 1990s,
coupled with the Structural Adjustment Program (SAP) introduced by the International
Monetary Fund (IMF) and the World Bank, led to massive job losses and reduced
government spending on public sector employment (Abiola, 2013).
In response to these challenges, the Nigerian government began to explore
alternative economic strategies, including promoting entrepreneurship. The realization
that traditional education was not sufficient to address the unemployment crisis led to the
incorporation of entrepreneurship education into the tertiary curriculum. This shift was
aimed at producing graduates who are not only job seekers but also job creators
(Arogundade, 2011). Entrepreneurship education is crucial for several reasons. First, it
provides graduates with the skills and knowledge necessary to identify and exploit
business opportunities. These skills include critical thinking, creativity, problem-solving,
and financial literacy. By developing these competencies, graduates can navigate the
complexities of starting and running a business (Olawolu & Kaegon, 2012).
Second, entrepreneurship education fosters innovation. It encourages students to
think outside the box and develop new products, services, or processes that can meet
market needs. Innovation is a key driver of economic growth, and by fostering an
entrepreneurial culture, Nigeria can stimulate economic development and reduce
dependency on foreign products and services (Ojeifo, 2012). Third, entrepreneurship
education promotes self-reliance and economic independence. In a country with limited
formal employment opportunities, self-employment provides a viable alternative for
graduates. By starting their own businesses, graduates can achieve financial
independence and contribute to the economy by creating jobs for others (Olawolu &
Kaegon, 2012).
Despite its potential benefits, entrepreneurship education in Nigeria faces several
challenges. One of the primary challenges is the lack of qualified instructors. Many
educators lack the practical experience and entrepreneurial skills needed to effectively
teach entrepreneurship courses. This deficiency undermines the quality of
entrepreneurship education and its impact on students (Izedonmi & Okafor, 2010).
Another challenge is the inadequate infrastructure and resources in many tertiary
institutions. Effective entrepreneurship education requires access to resources such as
modern classrooms, business incubation centers, and technological tools. However, many
Nigerian institutions lack these essential facilities, limiting the effectiveness of
entrepreneurship training (Nwosu & Ohia, 2009). Additionally, there is often a lack of
integration between entrepreneurship education and the wider curriculum. In many cases,
entrepreneurship courses are treated as peripheral subjects rather than core components of
the academic program. This marginalization reduces the emphasis placed on
entrepreneurship and its perceived importance among students (Ekpoh & Edet, 2011).
Empirical studies have highlighted the positive impact of entrepreneurship education on
reducing unemployment. For instance, a study by Iheanachor (2018) found that graduates
who received entrepreneurship education were more likely to start their own businesses
compared to those who did not. The study, which surveyed 500 graduates from various
Nigerian universities, revealed that entrepreneurship education significantly increased
graduates' entrepreneurial intentions and actual business startups.
Similarly, Oviawe (2010) examined the impact of entrepreneurship education on
the employability of graduates from Nigerian polytechnics. The study found that
graduates who underwent entrepreneurship training were better equipped with the skills
needed to succeed in the labor market. These graduates demonstrated higher levels of
creativity, problem-solving abilities, and business acumen, which enhanced their
employability.
In another study, Ekpoh and Edet (2011) investigated the effectiveness of
entrepreneurship education programs in Nigerian universities. The researchers found that
students who participated in entrepreneurship courses showed a greater propensity for
entrepreneurial activities. The study recommended that universities should strengthen
their entrepreneurship programs by incorporating practical experiences and real-world
business scenarios. The Nigerian government has implemented various initiatives and
policies to support entrepreneurship education and reduce unemployment. One such
initiative is the Youth Entrepreneurship Support (YES) program, launched by the Bank of
Industry (BOI) in 2016. The YES program aims to empower young Nigerians with the
skills and knowledge needed to start and manage their own businesses. It provides
training, mentorship, and access to finance for young entrepreneurs (BOI, 2016).
Another significant initiative is the National Youth Service Corps (NYSC) Skills
Acquisition and Entrepreneurship Development (SAED) program. The SAED program,
introduced in 2012, provides entrepreneurship training to corps members during their
mandatory service year. The program aims to equip young graduates with the skills
needed to become self-reliant and reduce the burden of unemployment (NYSC, 2012).
Furthermore, the Nigerian government has established several entrepreneurship
development centers across the country. These centers provide training, support, and
resources