Nigeria's gig economy has become a significant contributor to the country's economy, valued at approximately $5.18 billion. This burgeoning sector offers income opportunities to millions of Nigerians, with around three million people earning a living within the ecosystem. E-commerce accounts for 38 per cent of participation, followed by ride-hailing at nearly 24 per cent, while freelancing, delivery services, and micro-tasks make up the remaining share.
The gig economy's growth is attributed to the country's struggling domestic labor market, which is failing to provide quality jobs for its working-age population. Nigeria's working-age population stands at approximately 116.6 million, with an estimated 76.3 to 79.5 per cent being economically active. However, the employed population is around 84.1 million, with over 90 per cent working outside formal wage structures.
Young Nigerians are increasingly turning to digital platforms to create alternative income streams and cope with domestic economic pressures. Ushie Ekunke, a Cross River State-born freelancer, is among the talents contributing to Nigeria's sixth-place ranking globally as an offshore outsourcing destination. Ekunke secured several roles with different international companies over the past couple of years, leveraging platforms like We Work Remotely and careerhound.io.
The gig economy's contribution to Nigeria's Gross Domestic Product (GDP) is estimated at 2.8 per cent. While this emerging trend demonstrates young Nigerians' resilience and capacity for innovation, experts warn that the gig economy cannot replace a strong manufacturing sector. Reviving manufacturing through business-friendly policies, low-interest loans, and a supportive business environment is vital to economic recovery and providing jobs.
Terver Iyohen, a 46-year-old father of three, is one of the many Nigerians who have turned to the gig economy to make ends meet. After losing his job at an insurance firm in 2023, Iyohen signed up with a ride-hailing outfit and now crisscrosses Lagos State, picking up and dropping off intra-city commuters. Despite barely earning enough to cater for his family, he plies his trade with religious zeal.
Medical doctor Chinonso Egemba, popularly known as Aproko Doctor, has also made a name for himself in the digital economy. His distinctive approach to health communication has earned him millions of followers in Nigeria and across West Africa. Egemba's operations have expanded to employ up to 20 staff members, and he has collaborated with major corporate players to execute public health campaigns.
Experts emphasize that the gig economy's growth is a response to the government's and formal economy's failure to create sufficient jobs. To address this, the government must prioritize reviving the manufacturing sector and creating a supportive business environment. Key figures like Habeeb Hamzat, a popular digital streamer, have shown that it is possible to earn significant income through digital platforms, but a strong manufacturing sector is essential for sustainable economic growth.
Key points
- Nigeria's gig economy is valued at $5.18 billion and contributes 2.8 per cent to the country's GDP.
