Skills Gap or Salary Gap: The Truth About Nigeria’s Hiring Struggles

On March 13th, 2025, Nairametrics published an article that caused a stir online. The piece highlighted thousands of job vacancies going unfilled, seemingly implying that Lagosians are either unskilled or insufficiently skilled to fill these jobs. But this claim deserves closer scrutiny.

Various reports in the past have suggested that a concerning skills gap exists in Nigeria’s labour force, attributing it primarily to a lack of technical and digital skills. A report by the National Information Technology Development Agency (NITDA) notes that 85% of Nigerian graduates lack basic digital competencies and are unable to use the tools expected in today’s corporate world. The report also suggests that more than 100 million young people are unprepared to take on jobs that require digital skills. This perhaps explains the abysmal rate of youth unemployment in the country. 

View Countries with the Highest Youth Unemployment

But are Nigerian educational institutions truly equipping young people with the right skills to thrive in the modern workplace?

With outdated curricula still in circulation across many institutions, the evidence suggests otherwise. Citing a report from Cowrywise, TechCabal avers that it costs approximately ₦31.3 million ($19,431) to educate a Nigerian child from a private primary school to a public university. That figure rises to ₦65.5 million ($40,633) if the child attends only private institutions. 

While some argue that Nigerian education is among the most affordable globally, its affordability becomes meaningless if it does not translate into employable skills. Further compounding the issue is a flawed graduate deployment system where many NYSC members are posted to teach in schools regardless of their academic background.

The significant skills gap among Nigerian graduates equally suggests that some job seekers may feel compelled to embellish their resumes to appear more qualified. 65% of employers attest to this.

However, focusing solely on skills tells only half the story. There are counter-claims that the salaries offered by most Nigerian employers do not reflect the economic realities of rising inflation and a high cost of living. According to SEID’s Nigerian Consumer Outlook Report for 2025, only about 5% of Nigerians earn ₦500,000 or more per month. Supporting this, a report by PiggyVest reveals that 21% of Nigerians earn between ₦100,000 and ₦249,000 monthly, while just 8% earn between ₦250,000 and ₦499,000.

With wages this low, it does appear that many skilled Nigerians turn to freelancing or seek foreign, dollar-paying jobs, which are not only more lucrative but also offer greater flexibility. This is against the backdrop of World Bank’s report stating that there are over 17.5 million online freelancers in Nigeria, Kenya, and South Africa, with most of them being from Nigeria.

Interestingly, Nairametrics’ claims were largely built on data from page 73 of the 2025 Lagos Economic Development Update (LEDU) report. But their conclusion arguably misinterprets or oversimplifies the report’s findings.

The LEDU report states:

“On average, monthly labour demand stands at 2,837 job vacancies, whereas monthly labour supply is 3,318 jobseekers. However, 26% (816 jobseekers) lack both education and experience, leaving only 2,502 potentially employable candidates.”

Two insights are clear from this:

1. There are more job seekers than job openings, highlighting a fundamental shortage of employment opportunities.
    

2. Although only 26% of job seekers lack both education and experience, employability challenges may still persist for the other 74% due to mismatches between what employers need and what candidates can offer.

Notable complaints about the skills gap among employers reveal another dimension of the issue: poor job application practices. Many job seekers new to the labour market have said that they are unaware of the importance of submitting a portfolio, especially when it was not explicitly requested in the job ad. 

Others have also noted that some employers do not request specific information and expect candidates to know what to submit.

View 4 Reasons Why You Are Not Getting Applications for Your Job Opening

There are also concerns from job seekers about a tendency among employers to overload roles. This involves seeking candidates who can juggle multiple responsibilities simultaneously, sometimes hiring for what should be three distinct roles under one title.

In conclusion, while a skills gap undeniably exists in Nigeria, it is only part of a broader picture. Equally pressing are the salary gap, poor hiring practices, inadequate job descriptions, and an educational system that struggles to keep pace with industry demands. A holistic approach that encompasses education reform, improved compensation, clearer job requirements, and upskilling is the only way forward.