Abstract
Unemployment is a major challenge in Nigeria and many other developing countries. There is
unemployment among professionals and non-professionals alike, there is unemployment among young
school graduates, experienced professionals, tradesmen, and non-skilled workers in Nigeria. The
consequences of unemployment in Nigeria are grave and may be classified as social and private. They
include increase in crime rates, loss of potential output, poverty, and loss of potential tax revenue due
government, professional studentship and family instability. In Nigeria, as in some other developing
countries, job losses by households’ heads have negatively affected some homes, leading to family
disintegration. Unemployment can explain the rising trends of female headed households in Nigeria.
One major source of unemployment in Nigeria is insufficient capital for investments. The Harrod-Domar
(neo-classical) theory encourages savings as a source of capital formation for investments with the
consequent employment generation. This work identifies co-operative credits and thrift associations as
a veritable source of capital formation which is required for investment purposes. The thrift cooperative
as a micro finance agency is also a direct source of employment for those engaged in its management
or coordination.