Nigeria implements education reforms to address labor market skill gaps

Nigeria is facing a significant job-skills mismatch as the economy struggles to create enough formal employment to absorb its growing workforce. While university degrees remain a baseline for consideration, employers are increasingly prioritizing demonstrable skills in areas such as data analysis, sales, risk management, and problem-solving across sectors including finance, healthcare, and supply chain management.

Data from the National Bureau of Statistics indicates that informal employment accounted for 93% of the workforce in the second quarter of 2024. This high rate of informality persists even among trained workers, suggesting that the issue is not solely a lack of skills but a shortage of formal opportunities within the private sector.

In response, the government is implementing reforms through the National Board for Technical Education (NBTE). Supported by the Tertiary Education Trust Fund (TETFund), these initiatives include an institutional review by KPMG and the rollout of 31 National Occupational Standards designed to improve technical training and governance. Previous efforts included revoking the licenses of 136 institutions that failed to meet educational requirements.