This study investigated entrepreneurship and graduates' unemployment in Nigeria.The problem of unemployment in Nigeria has become endemic. There have been reported cases of under-employment, seasonal, casual and full blown unemployment. Previous studies on unemployment and factors influencing it in Nigeria identify poor educational standards, absence of industrial concerns that facilitate employment, love for white collar jobs, absence of self reliance, and mismatch between skills and available job opportunities. Recent studies also found that unemployment in Nigeria influences poverty and that the time lag between certification and first employment varies. Three research questions examined the effectiveness of policies on self reliance, and the attitudes of Oyo State graduates to white collar jobs. The study found significant perceived levels of graduates' unemployment, and preference for white collar jobs. It was recommended that entrepreneurship education be adopted in higher institutions to enhance self reliance among graduates. The government should correspondingly strengthen small and medium scale enterprise schemes.