The paper discussed entrepreneurship development and unemployment reduction in Nigeria. It views entrepreneurship development as capacity building for self-employment. It assumes a direct relationship between entrepreneurship development and unemployment reduction. The research question addressed the extent of the relationship between entrepreneurship development and increased employment opportunities/enhanced economic growth in Nigeria. The place of study consists of the 37 capital cities of Nigeria while the duration of study is between September 2013 and August 2014. A descriptive research design was used in executing the study, using 407 randomly selected registered unemployed graduates in 37 capital cities of Nigeria, for questionnaire administration. The sample size of 407 was determined from a population of 20.3million unemployed graduates as at 31st August 2014, using Yamane 1964 sample size determination formula at 5% level of significance for sampling error. Results from the data analysis indicated that significant relationship exists between entrepreneurship development and increased employment opportunities/enhanced economic growth in Nigeria and recommends among others: capacity building for potential entrepreneurs, provision of start-up capital for new entrepreneurs, establishment of entrepreneurs funding agencies, incorporation of entrepreneurship development in educational curricular, public/private sector partnership in infrastructural provision and provision of incentives for new business development.