Learning at the tertiary level of education could be described as being effective and functional, if it results in bringing about the expected transformation in the lives of its graduates over a period of time. Moreover effective learning should produce graduates who are adequately informed and technically equipped to become productive workers and self-reliant individuals in the 21st century. The Nigerian labour market and higher education have for long remained in a state of disequilibrium, the link between them is completely lost. As the supply of university and other tertiary institutions graduates continues to increase, the labour absorptive capacity of the economy continues to fall. This paper enumerates the various causes of unemployment in Nigeria. Among the immediate, short and long term measures recommended are curriculum re-engineering, promotion of enterprise culture to induce self-reliance and risk taking, linking education and training with the labour market, promotion of micro and small scale sector enterprises, and promotion of an entrepreneurship culture in the tertiary institution program.