Nigeria must accelerate job creation and economic transformation as nearly 60 million young people are expected to enter the labour force over the next decade, according to a new World Bank diagnostic that identifies employment generation as the country’s most urgent development priority.

‎The World Bank, in its Nigeria Streamlined Country Diagnostic, said unlocking economic opportunities to create more and better jobs is critical to reducing poverty and ensuring inclusive growth in Africa’s most populous nation.

‎According to the report, about half of Nigeria’s population is aged 18 years or younger, while the country’s population is increasing by almost five million people annually. The Bank said nearly 60 million young Nigerians will reach working age over the next 10 years, with the workforce projected to rise to about 180 million people by 2050.
‎
The report noted that one in four Nigerian youths is currently not in employment, education or training, underscoring the scale of the challenge facing policymakers and the private sector.

The World Bank said more than 92 per cent of employed youths work in the informal sector without contracts or employment benefits, while inadequate education and employment opportunities have contributed to the migration of both skilled and unskilled young Nigerians abroad.
‎
‎It warned that Nigeria’s economy has not grown or transformed sufficiently to generate enough jobs to absorb its rapidly expanding labour force, noting that the pace of economic growth must increase and become more job-creating and pro-poor.

The report identified weak skills acquisition, limited access to relevant training opportunities, poor labour market linkages and overlapping institutional mandates as some of the factors constraining employment outcomes. On the demand side, it said the economy has struggled to create sufficient opportunities despite a growing population.‎
‎
The World Bank said creating productive private-sector jobs and investing in skills development would be essential to lifting millions of Nigerians out of poverty and improving living standards.
‎
The warning comes against the backdrop of worsening poverty indicators in the country.

According to the diagnostic, the number of Nigerians living below the national poverty line increased from about 69 million in 2010 to 139 million in 2025, while an estimated 61 per cent of the population now lives below the poverty line.
‎
The bank said Nigeria’s development challenge has become more urgent amid rising poverty, insecurity and climate-related risks, noting that the country’s future trajectory will have significant regional and global implications given its projected population growth. By 2050, Nigeria is expected to have more than 400 million people and become the world’s third most populous country.