Nigeria’s gig economy has expanded to an estimated $5.17 billion, with ride-hailing platforms playing a major role in creating flexible income opportunities across the country.
This was revealed in a new report commissioned by Bolt and conducted by Ipsos, which was unveiled in Lagos on Tuesday.
The study, which examined gig work trends across Nigeria, Kenya, and South Africa, found that ride-hailing is the second-largest livelihood pathway in Africa’s gig economy, behind e-commerce.
In Nigeria specifically, e-commerce leads gig economy participation at 38%, while ride-hailing follows with 24%, making it one of the most accessible sources of flexible work.
The gig economy refers to income-generating activities carried out outside traditional full-time employment structures. As of 2024, the report estimates that around three million Nigerians are actively engaged in gig work.
Gig work becoming a key income source
According to the report, gig work is increasingly becoming an important solution for income generation, particularly in an economy where a large share of workers operate outside formal employment structures.
The findings show that more than 92% of employed Nigerians work outside formal wage systems, making flexible and platform-based jobs an attractive option for earning income.
Among gig sectors, ride-hailing accounts for 24% of participation, positioning it as one of the most accessible entry points for individuals seeking flexible work arrangements.
The report also challenges the perception that gig work is only temporary. It revealed that 59% of ride-hailing participants remain active on platforms for more than one year, indicating sustained reliance on the sector.
Commenting on the findings, Teddy Appa-Dankyi said flexible earning opportunities are increasingly shaping how many Nigerians make a living.
He noted that ride-hailing is no longer just about transportation but also about helping individuals diversify income and manage financial uncertainty while participating in the digital economy.
Youth driving gig economy growth
The report also highlights the role of Nigeria’s youthful population in driving gig economy expansion.
While Nigeria’s overall unemployment rate has declined to 2.99%, youth unemployment remains higher at 5.05%, pushing more young people to explore platform-based income opportunities.
Many young Nigerians now combine gig work with education, entrepreneurship, or migration plans, reflecting a broader shift toward multiple income streams.
Beyond employment access, the report estimates that gig economy activities contribute around 2.8% to Nigeria’s Gross Domestic Product (GDP).
Participation in gig work also appears to have positive welfare outcomes. About 64% of respondents reported significant improvements in their standard of living, while 31% said their living conditions improved slightly after joining platform-based work.
Gender gap highlights inclusion opportunity
Despite the sector’s rapid growth, the report highlights a significant gender imbalance, particularly in ride-hailing.
Women currently account for just 3% of ride-hailing participants, suggesting significant untapped potential for greater inclusion.
Weyinmi Aghadiuno noted that the findings present an opportunity for collaboration between policymakers, private companies, and industry stakeholders to ensure the gig economy remains sustainable and inclusive.
She emphasized that as flexible earning opportunities expand across Africa, policy support and collaboration will be crucial in ensuring broader access to economic opportunities.
Nigeria’s labour market evolving
The report ultimately positions ride-hailing as a key pillar of Nigeria’s evolving labour market, offering flexible income streams while increasing participation in the digital economy.
Recent trends also show that many young Nigerians are increasingly leaving traditional 9-to-5 jobs in favour of gig work, attracted by the flexibility and accessibility the sector offers.
In most cases, gig jobs prioritize skills and experience over academic qualifications, making them easier to access. For example, startups often hire professionals such as designers or writers for short-term projects based on their portfolios rather than formal degrees.
As Nigeria’s digital economy continues to grow, analysts say the gig sector could become an even more significant contributor to employment and economic activity in the coming years.
