The development and transformation of Nigerian and the Sub-Sahara Africa is highly dependent on youth empowerment through Entrepreneurship. They are the backbone of economic development all over the world and play important role for employment, income and societal changes, particularly in transition economies like Nigeria. This paper is concerned with the extent to which entrepreneurship in Nigeria has helped to reduce youth unemployment, and outlines the initiative taken by government to curtain unemployment and also the challenges and prospects for the development of entrepreneurship. The study revealed that such polices and initiative by government has affected the "transformation question". This is due to the increase of corruption, inadequate and inefficient infrastructural facilities and maladministration. paper concludes that entrepreneurship country is an engine for job creation; innovation and diversity and Nigeria's entrepreneurs have a long way to go before they can effectively drive changes in the economy and recommends that Government (policy makers) should genuine recognize the essence of entrepreneurship to economic development by providing the enabling environment and secured environment for the youth to be gainful employed for economic development and also provide adequate infrastructural facilities (water, electricity, road network, communications etc.).