Reviewed National Employment Policy of Nigeria – Labour Market Systems Reform, Employment Strategy and Inclusive Growth Framework

1. Executive Summary

This document presents a comprehensive review of Nigeria’s National Employment Policy, providing a structured assessment of labour market systems , employment challenges , and policy effectiveness. It examines key structural issues shaping employment outcomes, including informality, youth unemployment, skills mismatches, and weak institutional coordination.

The review identifies critical gaps in the existing policy framework and proposes strategic reforms to strengthen employment systems , improve policy coherence, and enhance implementation capacity. It emphasizes the need for integrated approaches that align employment policy with economic development strategies, education systems, and private sector growth.

The document contributes to national policy reform efforts by providing evidence-based recommendations for employment generation, labour market transformation , and inclusive growth, supporting Nigeria’s broader development objectives.

This report is designed primarily for:

❖Federal, state, and local government policymakers responsible for employment and economic development

❖Ministries, Departments, and Agencies (MDAs) involved in labour, education, enterprise development, and economic planning

❖Private sector organizations and business leaders seeking to expand employment opportunities

❖Employers’ associations, professional bodies, and labour unions

❖International development partners and multilateral institutions working on employment and labour market reforms

❖Researchers, policy analysts, and academics studying labour markets and economic development

❖Civil society organizations and non-governmental organizations engaged in employment promotion and social protection

2. Methodology & Analytical Framework

The development of the Reviewed National Employment Policy was informed by extensive labour market diagnostics, macroeconomic analysis, and consultations with key stakeholders across Nigeria. The policy draws upon data from national labour force surveys, macroeconomic indicators, and institutional assessments to understand the dynamics of employment, unemployment, and labour productivity in the country.

The analytical approach includes:

Labour market systems analysis , examining employment structure, informality, and sectoral dynamics

Policy review and evaluation, assessing the effectiveness and coherence of the existing National Employment Policy

Institutional and governance analysis, identifying coordination gaps and implementation challenges

Comparative policy benchmarking, aligning national frameworks with international labour standards and best practices

Stakeholder-informed insights, reflecting multi-level perspectives on employment systems and policy outcomes

This framework enables a comprehensive evaluation of policy performance, structural constraints, and reform pathways for employment systems strengthening.

3. Key Insights & Major Findings

1.Economic growth in Nigeria has not generated sufficient decent and productive jobs.

2.A large proportion of employment exists within the informal sector with low job security and income levels.

3.Youth unemployment and underemployment remain significant challenges due to rapid population growth.

4.There is a persistent mismatch between labour market demand and available workforce skills.

5.Women face structural barriers and gender-based inequalities in employment opportunities.

6.The Nigerian labour market is affected by high inflation, poverty, and economic instability.

7.Structural transformation and sectoral diversification are essential for sustainable job creation.

8.Effective employment policies require strong coordination among government, private sector, and development partners.

9.Existing employment policy frameworks require reform to address structural labour market challenges

10.High levels of informality and youth unemployment remain central constraints to inclusive growth

11.Skills mismatches limit workforce productivity and employment outcomes

12.Institutional coordination gaps weaken policy implementation and effectiveness

13.Labour market data systems require strengthening for evidence-based policymaking

14.Integrated policy approaches are essential to align employment, education, and economic development systems