Nigeria 85.6% of Nigerians in Workforce Are Self-Employed, NBS Survey Shows

The National Bureau of Statistics (NBS) reports that 85.6% of Nigeria's working-class population is self-employed, with a significant reliance on informal work. Gender and regional disparities are highlighted, as rural areas show higher self-employment rates, and women dominate informal employment, revealing key trends in Nigeria’s labor market.
The National Bureau of Statistics (NBS) has reported that a significant 85.6% of Nigeria’s working population is engaged in self-employment, reflecting the dominant role of this sector in the country’s labor market. This information was shared in the NBS’s Q2 2024 Labor Force Survey, which highlights the evolving nature of employment in Nigeria, driven by both economic and structural factors.

The report classifies employment into two main groups: employees, who earn wages or salaries, and self-employed individuals, who operate their own businesses either independently or with partners. The proportion of self-employed individuals slightly increased from 84% in Q1 2024, although it decreased from 88% in the same period in 2023.

The survey also reveals gender and regional differences in self-employment rates. Women have a higher rate of self-employment at 88.3%, compared to 82.2% for men. Rural areas also show a higher percentage of self-employed workers, with 94.3% in rural areas compared to 79.7% in urban centers. This disparity is largely due to the prominence of agriculture and trade in rural economies.

Additionally, informal employment remains dominant, with 93% of total employment in Q2 2024 categorized as informal. This trend has remained largely unchanged from previous quarters. Informal work is particularly prevalent among those with little or no formal education, with 99% of those without formal education working in the informal sector.

These findings highlight the ongoing challenges in Nigeria’s labor market, especially the lack of social protections for informal workers and the need for policies that support the transition to formal employment.