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 Entrepreneurship is the springboard for any market enterprise and a sin-qua-non to development. The clarion call by governments of developing countries like Nigeria towards this subject matter is considered a worthy cause. Attempts have been made by the Nigerian government at encouraging and sustaining entrepreneurship among its teaming youth population. Programmes like YOUWIN, Youth Empowerment Scheme of NAPEP, SURE-P, SMEIDAN, etc, were developed by the federal government for this purpose. In spite of the presence of these initiatives, the spate of entrepreneurship in Nigeria is still below expectation considering the percentage of the unemployed. It is against this backdrop that the study seeks to examine the relationship between governance and entrepreneurship in Nigeria. The study made use of secondary sources of data like CBN reports and other government gazettes. With the aid of SPSS version 20, the data gathered was analyzed and the hypothesis tested using Pearson Correlation. It was revealed that Government has initiated policies which actually impacted on unemployment reduction although a large number of the opportunities granted were politicized. The study recommends that when grants are given for entrepreneurships, politicians should keep off from influencing what goes to who. Finally a policy document must be formulated to protect businesses in this category.