Technology Based Business Start-Ups and Youth Employment in Nigeria

This study examined the nexus between technology-based business start-ups and youth employment in Nigeria. The specific objectives of the study were to determine the individual effects of number of technology-based start-ups, value of web-based start-ups, government ICT investment, inflation rate and literacy rates on youth employment in Nigeria. Data were sourced from the CBN Statistical Bulletin, National Bureau of Statistics and Africa Start-up List 2023 publications. The data were analysed using Error Correction Model. The results indicated that the number of technology-based start-ups and government ICT investment significantly decreased youth employment in Nigeria, while the value of web-based start-ups decreased youth employment but not significantly. Further analysis revealed that inflation rate and literacy rate exerted significant negative effects on youth employment in Nigeria. The study concluded that technology-based business start-ups have not contributed positively to youth employment in Nigeria during the period under review. Also, rising inflation continues to weaken the job-creating capacity of businesses, while the negative effect of literacy reflects persistent skill mismatches and the inability of the labour market to absorb the growing pool of educated youths. The study recommends that government should make their expenditure on ICT to be targeted towards technology based firms especially start-ups, develop national database of technology-based start-ups, ensure macroeconomic stability and align digital literacy in the country’s education system.

Business Startups, Government Investment, Inflation Rate, Literacy Rate, Technology-based, Youth Employment.

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