Abstract Graduate unemployment in Nigeria has persisted despite the expansion of tertiary education, raising concerns about the relevance of acquired skills to labour market realities, particularly within rural contexts where economic opportunities are limited. This paper therefore looked at graduate unemployment and the crisis of skill relevance: Evidence from rural Nigeria, examined the patterns and forms of graduate unemployment, evaluates the relevance of skills obtained from tertiary institutions to rural labour market demands, and analyses the relationship between skill mismatch and unemployment outcomes. The paper was anchored on the Human Capital Theory which links education to productivity and employability. A systematic review methodology relying on secondary data was adopted, drawing on recent peer-reviewed studies published between 2020 and 2026, with clearly defined inclusion and exclusion criteria to ensure methodological rigour. The paper revealed that graduate unemployment in rural Nigeria manifests in open unemployment, underemployment, and seasonal engagement, driven largely by weak labour absorption and limited economic diversification. The paper further established that skills acquired from tertiary institutions are often misaligned with the needs of rural economies, thereby reinforcing a persistent skill mismatch that constrains employability. It concluded that the expected returns to education are undermined when skill relevance is weak and when structural constraints limit the utilisation of human capital. The paper therefore recommended overhauled curriculum reforms that emphasise practical and context-specific competencies, stronger collaboration between educational institutions and local industries, and targeted investment in rural economic development to enhance job creation and skill utilisation.