Due to numerous challenges and harsh socio-economic environment, many Nigerian youth are now depending on themselves and driving their own future by creating opportunities for themselves and others, by undertaking different entrepreneurial ventures towards self-reliance. The strength of any nation depends on the policy framework and initiatives put in place by the public sector and NGOs to develop and empower the youth in order to maximize their potentials, talents and untapped capacities in nation building. This paper is a review of the challenges and prospects of the Nigerian youth in the current economic situation. A critical review of this group of individuals is imperative for their increased utilization and subsequent improvement in national development. Concept of youth, youth unemployment situation, programmes put in place for youth development, challenges confronting the youths and way forward for youth development in Nigeria were key areas looked into. From the review it was concluded that youths in Nigeria are crucial elements in the development process and it has been established by this review that, no nation can develop beyond the quality of its youth. It is recommended therefore that, youth need to be well educated, trained, guided and supported to actualize their dreams and contribute to national development. Secondly, there is the need to put in place workable and well supported and funded policy initiatives to empower and develop the capacities of Nigerian youth as they contribute to national development. Key: Youth, challenges, prospects, economic situation