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The work is motivated by the seeming inability of the public sector to
make and implement polices and programmes to curb the high rate
of rural – urban migration and unemployment that is usually
experienced in Nigeria. The study was geared towards an overview
of the issues of urbanization and unemployment as well as their
implication on the development of Nigeria. Secondary data were
collected and analyzed using ordinary least square method. The
result obtained from the analysis shows that urbanization has a
significant impact on economic growth. It was then recommended
that government should strive more to make access to higher
education, scholarship and agricultural facilities available to the rural
populace and further enhance effort towards population control
through public – private sector to make a productive life worth living
in rural areas.
Title Page i
Approval Page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi
1.1 Background of the study 1
1.2 Statement of Problem 5
1.3 Objective of the Study 6
1.4 Research Question 6
1.5 Statement Of the Hypothesis 7
1.6 Significant of the Study 7
1.7 Scope of the Study 7
1.8 Definitions of Terms 8
1.9 Organization of the Study 12
2.1.1 Theoretical review of Literature 27
2.2 Causes of Urbanization 30
2.3 Changing Forms of Urbanization 36
2.4 Review of Urbanization in Nigeria 37
2.5 Theoretical Literature on Unemployment 42
2.6 Review of Unemployment in Nigeria. 45
2.7 The Link Between Urbanization and Unemployment
in Nigeria 47
2.8 The Empirical Study of Unemployment and Urbanization 48
3.1 Urbanization and Unemployment 56
3.2 Sources of Data 56
3.3 Method of Data Collection 57
3.4 Restatement of Hypothesis 57
3.5 Model Specification 58
3.6 Method of Data Analysis 60
3.7 Education of the Estimates 61
3.8 Testing of Hypothesis 62
4.1 Presentation and Analysis of Data 64
4.2 Interpretation/Evaluation of Result 65
4.3 Hypothesis Testing 74
5.1 Discussion of Findings 75
5.2 Summary 75
5.5 Conclusion 76
5.6 Recommendations 77
The rate of urbanization is increasing in both the developed
and developing countries. However, rapid urbanization, particularly
the growth of large. Cities and the associated problems of
unemployment, poverty, inadequate health care, poor sanitation,
urban slums and environmental degradation pose a formidable
challenge in developing countries. Available statistics shows that
more than half of the world lives in urban areas at the end of 2010
from 49% (3.2billion) in 2008. the same report projected that figure
is likely to rise to 60% (4.9billion) by 2030. according to the UN state
of the world population 2007 report, the majority of people
worldwide will be living in towns or cities, for the first time in
history, this is referred to as the arrival of the “urban millennium” or
the ‘tipping point’. In regard to future trends, it is estimated 93% of
urban growth will occur in developing nations, with 80% of urban
growth occurring in Asia and Africa
Urbanization simply defined, is the shift from a rural to an
urban society and involves an increase in the number of people in
urban areas during a particular year. Urbanization is the outcome of
social, economic and political development that lead to urban
concentration and growth of large cities changes in the land use and
transformation from rural to metropolitan pattern of organization
and governance.
Although Urbanization is the driving force for modernization,
economic growth and development, there is increasing concern
about the effect of expanding cities, particularly on human health,
livelihood and environment. The implication of rapid urbanization
and demographic trends for employment, food, security, water
supply, shelter and sanitation, especially the disposal of waste (solid
and liquid) that the cities produce are staggering (UNCED, 1992). The
question that arises is whether the current trend in urban growth is
sustainable considering the accompanying urban challenge such as
unemployment, poverty and environmental degradation especially in
the developing countries.
Thus, of significant attention to us is the problem of
unemployment as a result of urbanization in the Nigerian urban
areas. Urban unemployment or unemployment in the urban Nigeria
stands for the conglomeration of people with diversity background,
willing and able to work in the urban areas resulting in pressure of
supply of labour over the demand for labour. Thus causing
joblessness. Implicit in this definition are the following for excessive
manpower supply of labour over manpower demand for labour,
there may have a risen a situation whereby job seekers irrelevant or
not needed education qualification, both the public and private
sector may not have involved a calculated policy to afford them the
opportunity for self employment through planned programs. In
Nigeria it is estimated that in 1900 about 95% of Africa’s inhabitants
South of Sahara lived from the Primary occupations of
farming, hunting & gathering, cattle anomalism, and fishing (Aase,
2003:1) meaning that less than 5% were urban. In 1950 (the start of
the independence period) 14.7% of Africa’s inhabitants were urban
in 2000 had it risen to 37.2% and it is expect 3.76%, 3.35% per year
(UN, 2002) the Nigerian city of Lagos in 1963 had 665000
inhabitants (Rakodi, 1991) and 8.7miliion in 2000 is expected to
become the worlds 11th biggest city by 2015 with 16million
inhabitants (UN, 2002).
Therefore, a survey by the UN international labour
organization (ILO) indicated that as many as 3 million Nigerians fall
within the working age out of this, 90 percent or about 3 million are
unemployed. A further study on the geographical distribution of
those unemployed shows that as many as 2.7million out of the 3
million live in urban area (ILO survey report African concord 1996).
Surely, it is very difficult to ascertain the current rate of
unemployment in Nigeria but evidence and indication of urban
unemployment overwhelming. There is no gainsaying that there are
significant correlation between urbanization and unemployment in
Nigeria though Urbanization is also a consequence of
industrialization or economic specialization. It connotes the
movement of people principally from agricultural productivity. The
process involves changing relationship and interaction.
Conclusively, there exists convincing evidence that the bulk of
urban unemployment in the country is among able bodied youths.
Data shows that in 2009 at the recent Nigerian economic summit,
group (NESG) policy dialogue on the Nigeria economy, Nigeria’s
minister of finance quoted data from the National Bureau of statistics
(NBS) saying that “unemployment in Nigeria is running at around
19.7 percent on average and almost half of 15-24 year olds living in
urban areas are jobless” the theme of the policy dialogue growth
through public private partnership.
The Nigeria population of about 150 million with a growth rate
of 3.2%, more youths are getting into the educational system, more
.youths are also graduating, more are getting into the urban labour
market while more are also becoming unemployed. Some of the
manifestation of the failing of both the educational system and the
economy are unemployment and underemployment. Urban
unemployment is growing progressively worse due to rural to urban
migration. This migration is as a result of high concentration of
Infrastructure and amenities in the urban areas, coupled with
favourable living conditions and standard of living.
Some adolescents do not think about any job at all until they
are faced with the issue of locating one in the urban center. The
contributing fact to this is that career guidance is minimally
emphasized in our school curriculum. When the youths are not
formally provided with occupational information which forms the
basis for realistic occupational choice, some often accept any job for
which they are not well prepared for these result into inefficiency,
low productivity, low or lack of job satisfaction and they all
culminate into underdevelopment.
The objectives of the study are:
1. To examine the relationship between urbanization and
unemployment in the development of Nigeria.
2. To determine the implication of urbanization on the development
of Nigeria GDP per say.
3. To determine also the implication of unemployment of Nigeria.
GDP per say.
4. To proffer solution that will bring these problems to the barest
minimum in Nigeria.
The research questions for this study are as follows:
1. Does urbanization and unemployment have any
relationship in development of Nigeria?
2. Does urbanization contribute to the output of Nigeria?
3. What are the implications of unemployment on the development of
4. What are the possible solutions that will bring these problems to
the barest minimum in Nigeria?
For the purpose of this study, the following hypothesis will be tested.
H0: Urbanization has no significant impact on economic growth.
H1: Urbanization has significant impact on economic growth.
H0: Unemployment has no significant impact on economic growth.
HI: Unemployment has significant impact on economic growth.
The significance of this study are as follows:
The study would provide an econometric basis upon which to
examine the effect of urbanization and unemployment on Nigeria’s
economy which would be useful to Nigeria as a whole. ,
The study will add to intellectual value of Nigerians. The
knowledge of the effect of urbanization and unemployment will be
very useful as it will broaden individuals outlook, sharpen their
intellect. and inculcate in them the habit of balanced thinking.
The study will also .educate the government and youth who ignored
agriculture in pursuit of white collar jobs in the office.
Finally, the study will serve as a reference material for further


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