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The Nigerian economy is characterized by over dependency on oil, inadequate infrastructure, high rate of unemployment, and the consequences of these conditions. There is, therefore, a great need for diversification of the economy, especially in the face of the dwindling oil prices, falling value of Naira against other world currencies, and the call by the government for greater commitment and interest in other sectors of the economy to create an economy that will not solely depend on oil for its growth and development. Entrepreneurship is noted and globally acknowledged as one of the instruments for achieving economic growth and development as well as employment creation. in the light of the foregoing, this paper examined the processes, issues, and challenges that are involved in using entrepreneurship as a tool for massive industrialization, economic growth and development, and to reduce the dependency on oil sector. This paper presents a review of related literature and concludes that poor entrepreneurship development is a major factor militating against economic diversification in Nigeria drive. The study therefore recommends that government should encourage entrepreneurship development through the provision of basic social amenities and economic infrastructure that will enable the necessary productive activities. Entrepreneurs and innovators should also be encouraged through the grant of soft loan and tax holidays.
Key Words: Entrepreneurship, Dependency, Unemployment, Diversification, Economic growth, Oil sector, Nigerian economy.