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A new study has shown that the informal sector accounts for 76.7 per cent of Nigeria's workforce.
The study sponsored by Jobberman Nigeria underscored its role as the bedrock of the nation's workforce.
The report also underscored the importance of the informal sector to Nigeria's economy.
It indicated that self-employment was a dominant trend, with 75.4 per cent of individuals engaging in informal work for at least one hour weekly.
It added that the informal sector was particularly vital for youths, women, and vulnerable populations, offering essential job opportunities and survival pathways for millions across the country.
However, the study also highlighted significant challenges facing the sector, including skills gap in digital tools and business development that restricts growth potential.
It identified regional disparities between Northern and Southern Nigeria regarding skills rewards, talent retention, and access to training opportunities.
The rise of digital platforms further complicates the landscape, presenting both opportunities and regulatory challenges that the informal sector must address.
The lead researcher of the study, Glory Aiyegbeni, stated, “This report unveils the informal sector as Nigeria’s hidden economic powerhouse. It’s not just about survival—it is a hotbed of innovation and entrepreneurship.
“However, transitioning these businesses to sustainable models remains a significant challenge. We have found that many workers are trapped in survivalist businesses, unable to transition into sustainable enterprises and dignified work due to poor business environments and market conditions.”
The report highlighted the need for advanced, inclusive, and comprehensive work policies to address new forms of work such as freelancing and gig work.
The Chief Executive Officer of Jobberman Nigeria, Oreoluwa Boboye, stated, “Our findings provide a clear roadmap for harnessing the immense potential of Nigeria’s informal sector.
“By addressing the identified challenges, we can drive sustainable growth and create dignified employment for millions. It is crucial that we recognise and optimise traditional employment and apprenticeship models, such as the Igbo Apprenticeship Model, which has been recognised as one of the largest business incubators in the world.”
It recommended intervention measures to address informal sector challenges such as the implementation of multi-channel training programmes to bridge skills gaps, particularly in soft skills, financial literacy, and small business management.
It also advocated the building of marketplaces for fragmented verticals and optimising local associations to better serve young entrepreneurs.
