Tackling Nigeria’s $14 Billion Skills Crisis: Sector-Specific Human Resource Management Interventions for Inclusive Growth and Competitiveness

Abstract

Nigeria faces a severe skills gap that costs its economy an estimated $14 billion annually and contributes to youth unemployment exceeding 33%. Sector-specific shortages such as a 68% deficit in ICT competencies and a 63% shortfall in agricultural expertise compound the problem, alongside persistent disparities in access to quality education and vocational training. While Human Resource Management (HRM) interventions have gained traction in recent years, there is limited empirical evidence evaluating their effectiveness across key sectors. This study conducts a narrative review of literature published between 2015 and 2023, drawing on peer-reviewed research, institutional reports (e.g., World Bank, PwC, NBS), and illustrative case studies such as Andela's digital talent model. It benchmarks Nigeria’s HRM landscape against regional comparators, including Kenya’s Technical and Vocational Education and Training (TVET) reforms and South Africa’s skills development strategies. Findings reveal that vocational training programs (with a 60% readiness score) outperform traditional tertiary education pathways (40%). Sector-specific HRM strategies, particularly apprenticeships and public-private partnerships, demonstrate significant promises, increasing job placement rates by up to 30%. However, where structural inequalities persist, women remain 30% less likely to access upskilling programs, and rural communities face persistent digital infrastructure gaps. Private-sector models exhibit high scalability but require robust policy and institutional backing. Addressing Nigeria’s skills crisis demands context-sensitive, blended strategies such as industry aligned curricula, gender-inclusive vocational programs, and rural-focused digital expansion that could unlock an estimated 5% in annual GDP growth. To accelerate impact, this study recommends the establishment of a national skills council to standardize certifications, the introduction of tax incentives for employer-led training, and strategic investments in digital infrastructure. Bridging Nigeria’s skills gap is vital to reducing inequality, minimizing economic losses, and transforming the nation’s youth into catalysts for inclusive, sustainable development.

Suggested citation

Lolo Teddy Adias, Aziba-anyam Gift Raimi (2025). Tackling Nigeria’s $14 Billion Skills Crisis: Sector-Specific Human Resource Management Interventions for Inclusive Growth and CompetitivenessJournal of Ecopolitics, Peace, and Sustainable Development, 1(1). https://doi.org/10.69798/84744666

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