“Self-employment continues to define the labor landscape in Nigeria, with 85.6% of the working-class population relying on self-driven enterprises,” the National Bureau of Statistics (NBS) stated in its Q2 2024 Labor Force Survey.
This figure marks a slight increase from the 84% recorded in Q1 2024, though it remains below the 88% seen in the same period last year.
The report divides the workforce into employees, who earn wages or salaries, and self-employed individuals, often referred to as own-account workers. According to the NBS, the findings reflect the enduring significance of informal and independent economic activities across the nation.
Women and Rural Areas Lead Self-Employment Rates
Highlighting gender dynamics, the report showed that women are more likely to be self-employed than men. “Women recorded an impressive self-employment rate of 88.3%, compared to 82.2% among men,” the report detailed. However, men dominate wage-based employment, underscoring gender disparities in formal job access.
The rural-urban divide further illustrates the landscape, with rural areas exhibiting a self-employment rate of 94.3%, in contrast to 79.7% in urban centers. “Agriculture and trade-related activities are the backbone of rural economies, driving high self-employment rates,” the NBS explained.
Informal Employment: A Persistent Norm
Informality remains the dominant force in Nigeria’s labor market, with 93% of total employment categorized as informal in Q2 2024—a marginal rise from 92.7% in the previous quarter. Education levels play a significant role, as individuals with no formal education overwhelmingly engage in informal employment (99%), while only 26.6% of those with post-secondary education work informally.
“The data highlights stark educational disparities, with informality dropping significantly among individuals with higher education,” the report stated. Excluding agriculture, informal employment for those with post-secondary education stands at just 14.7%.
Women and rural communities are particularly impacted. “Women are disproportionately employed in informal sectors, and rural informality rates reach as high as 97.5%, compared to 90% in urban areas,” the NBS reported. These figures underscore the critical role of agriculture and small-scale enterprises in sustaining rural livelihoods.
A Gradual Workforce Recovery
The NBS noted positive shifts in other labor indicators, such as the employment-to-population ratio, which increased to 76.1% in Q2 2024 from 73.2% in Q1. Similarly, the labor force participation rate rose to 79.5%, signaling growing economic activity.
Meanwhile, Nigeria’s unemployment rate dropped to 4.3% in Q2 2024, a 1-percentage-point decline from Q1. However, year-on-year comparisons show a slight increase of 0.1 percentage points, reflecting persistent economic challenges.Call for Policy ReformsThe report concluded with a call for targeted reforms.
“The high prevalence of self-employment and informality underscores the need for policies that enhance job security, expand access to social protections, and create pathways toward formal employment,” the NBS emphasized.
Addressing these issues is crucial for fostering sustainable economic growth and ensuring social inclusion.
