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Nigeria’s 65% skills gap threatens economic growth amid global labour shifts- Report

Ngozi Ekugo
4 Min Read

The Future of Jobs report 2025 by Lagos state employment trust fund (LSETF)  reveals that 65 percent of Nigerian employers cite skill gaps as a major barrier to organisational transformation.

In addition to the skills gap, half of employers report difficulty attracting talent, resistance to organisational change, and regulatory inflexibility. Limited investment capital further compounds the challenge.

As global labour trends accelerate, driven by technological disruption, demographic shifts, and the green transition, experts say that Nigeria must urgently invest in human capital to remain competitive.

Nigeria mirrors many global trends but faces unique challenges. Artificial Intelligence (AI), machine learning specialists, data analysts, and sustainability experts are the top growth roles, with net increases of 82 percent, 41 percent, and 33 percent respectively.

Digital transformation is also reshaping employer priorities. Network and cybersecurity skills are in highest demand, with 87 percent of Nigerian employers identifying them as critical, well above the global average of 70 percent. Other sought-after competencies include AI and big data proficiency, systems thinking, customer service, and global citizenship.

The World Economic Forum’s Future of Jobs report 2025 also notes that 170 million jobs are expected to be created globally over the next five years, with 92 million jobs displaced, and over a billion will evolve in form and function. These projections, based on a survey of over 1,000 large enterprises across 55 economies, signals a  shift in the nature of work.

Read also: The future of work: should we rent or own our workforce

Global trends: The rise of tech and green roles

Across international markets, roles such as big data specialists, fintech engineers, AI and machine learning experts, and software developers are surging in demand. The green economy positions autonomous vehicle engineers, environmental scientists, and renewable energy experts are also climbing the ranks.

Conversely, traditional roles like bank tellers, postal clerks, and administrative assistants are experiencing steep declines. Employers globally are prioritising analytical thinking, cybersecurity, and digital literacy, alongside soft skills like creativity, adaptability, and lifelong learning.

Read also: The Silent Surge: Gen Z, data intelligence, and the future of work

Nigeria’s labour landscape: Opportunities and challenges

Based on the report, 73 percent of Nigerian employers advocate for increased government funding, while 40 percent stress the need for improved transport infrastructure to support workforce mobility.

Organisations must also play their part by embedding upskilling into corporate culture and strengthening change management strategies. Without such commitment, Nigeria risks falling behind in the global race for talent.

The report notes that public-sector investment in reskilling is vital. Stakeholders across government, industry, and education must collaborate to ensure Nigerian talent is future-ready. While the CV may still hold relevance, the future belongs to those who can adapt, learn, and lead in a world defined by change.

The skills gap is not merely statistics, but a barrier to growth, innovation, and inclusion.As technological disruption, climate imperatives, and economic uncertainty reshape the global labour market, Nigeria must act decisively.

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Ngozi Ekugo is a Snr. Correspondent/ analyst at Businessday. She has worked across various sectors, and notably had a brief stinct at Goldman Sachs, London. She holds an MSc Management from the University Hertfordshire, a Bachelor of Arts from the University of Lagos and is an alumna of Queen’s college. She is also an associate member of the Chartered Institute of Personnel Management (CIPM).