New report reveals key insights into the hidden dynamics of Nigeria’s economy
LAGOS, Nigeria – A groundbreaking report released by Jobberman Nigeria in partnership with the Mastercard Foundation has revealed the critical role of the informal sector in driving economic growth and employment in Nigeria. This comprehensive study provides unprecedented insight into the segment that accounts for a significant portion of the country’s GDP and forms the backbone of the country’s workforce.
The study revealed several key findings that highlight the importance of this sector. The informal sector accounts for the majority of employment trends, with 76.7% of employed Nigerians working at least one hour a week in informal work. Self-employment accounted for the most at 75.4%, highlighting the entrepreneurial spirit of Nigerians. The sector serves as a critical economic lifeline for youth, women and vulnerable groups, providing jobs for Nigeria and a means of survival for millions of people.
However, the report also highlights significant challenges. Significant skills gaps, particularly in digital tools and business development, hinder the growth potential of informal businesses. Regional disparities are evident between northern and southern Nigeria in terms of skills remuneration, talent retention, and access to training opportunities. The rise of digital platforms is reshaping the sector, creating both opportunities and regulatory challenges.
Glory Aiyegbeni, lead researcher on the study, said: “This report reveals that the informal sector is Nigeria’s hidden economic powerhouse. It is not just about survival, it is also a hotbed of innovation and entrepreneurship. But it is also about sustaining these businesses. Transitioning to a viable model remains a major challenge. Many workers are trapped in survivalist businesses and are unable to transition to sustainable enterprises and dignified work due to poor business and market conditions. I found out that there isn’t.
The report highlights the impact of digitalization on the informal sector. The report notes that the digital revolution is disrupting traditional informal labor patterns, facilitating the formal aggregation of informal workers, and promoting the democratization of upskilling platforms. This change calls for progressive, comprehensive and comprehensive labor policies to address new forms of work such as freelancing and gig work.
Oreoluwa Boboye, CEO of Jobberman Nigeria, added: By addressing the identified challenges, we can drive sustainable growth and create dignified employment for millions of people. It is critical to recognize and optimize traditional employment and apprenticeship models, such as the Igbo apprenticeship model, which is recognized as one of the world’s largest business incubators. ”
The report recommends several interventions to address challenges in this sector. This includes introducing multi-channel training programs to close skills gaps such as soft skills, financial literacy and small business management, among others. Building marketplaces for segmented industries and optimizing local associations to better serve young entrepreneurs are also key recommendations. Furthermore, developing context-specific policies for informal workers and businesses, and recognizing and strengthening traditional employment and apprenticeship models, would be an important step forward.
The study also highlights the need for policies that balance formalization efforts with the power relations specific to the informal sector. This suggests that, rather than imposing formal structures, policies should aim to optimize existing informal practices while providing better protection and benefits to workers in the informal sector. Masu.
This comprehensive report provides policymakers, business leaders, and stakeholders with an insight into the critical role of the informal sector in Nigeria’s economy and how it can support Nigeria’s growth and transition to more dignified and fulfilling work opportunities. The aim is to inform the interventions needed to support.
Download the complete report at https://www.jobbermanreport.com/.
