BTA Admin Nigeria’s gig economy is expanding rapidly, with millions turning to flexible work for income — yet rising costs are making it harder for many to stay profitable.
An estimated three million people are now working within Nigeria’s gig economy, with nearly a quarter engaged in ride-hailing services, according to a new report by Ipsos commissioned by Bolt.
A $5.18 Billion Market on the Rise
Valued at approximately $5.18 billion, Nigeria’s gig economy is fast becoming a significant part of the country’s labour market.
The growth reflects broader regional trends. Data from the World Bank shows that as of 2023, around 17.5 million people in Nigeria, Kenya, and South Africa were engaged in online gig work.
Why More Nigerians Are Turning to Gig Work
Economic pressures are a key driver.
Rising inflation, limited formal job opportunities, and a growing youth population have pushed more Nigerians into self-employment and digital platforms. By late 2023, about 87.3% of employed Nigerians were already working in self-employed roles.
Ride-hailing, in particular, has emerged as a major income source — ranking just behind e-commerce in participation, and ahead of freelancing and remote work.
Flexibility Attracts Workers
For many Nigerians, gig platforms offer something traditional jobs often cannot: flexibility and immediate income opportunities.
According to Teddy Appa-Dankyi, flexible earning options are becoming central to how people make a living.
Across Africa, motivations vary:
- In South Africa, drivers prioritise financial stability
- In Kenya, independence is key
- In Nigeria, many are drawn by the ability to earn extra income on demand
Rising Costs Squeeze Earnings
Despite its growth, the sector is facing increasing strain.
Drivers report that higher fuel prices, currency depreciation, and rising maintenance costs are eating into profits. Fuel prices in Nigeria have climbed sharply, exceeding ₦1,200 per litre in 2026, compared to significantly lower levels in previous years.
As a result, many drivers are working longer hours just to maintain their income levels.
Living Standards Improving — But At a Cost
The report found that 64% of gig workers say their standard of living has improved. However, this often comes with longer working hours and increased financial pressure.
For many, the gig economy is less about flexibility and more about survival.
Gender Gap Remains a Challenge
The sector also faces inclusivity issues.
Women make up just 4% of ride-hailing workers in Nigeria, highlighting a significant gender imbalance. Other African markets are beginning to address this through targeted initiatives, but progress remains slow.
Policy and Sustainability Questions
Experts say the rapid expansion of gig work presents both an opportunity and a challenge for policymakers.
Weyinmi Aghadiuno noted that collaboration between governments, platforms, and stakeholders will be crucial to ensure the sector remains sustainable and inclusive.
What’s Next for the Gig Economy?
While ride-hailing is expected to remain a key income source, future growth may depend on innovation.
New opportunities — such as electric vehicles, parcel delivery, and food logistics — could help drivers diversify income streams and offset rising operational costs.
Nigeria’s gig economy is no longer a side hustle — it is becoming a core part of how millions earn a living.
But as the sector grows, the challenge will be ensuring that opportunity does not come at the expense of sustainability.
