Nigeria’s gig economy has grown to an estimated $5.17 billion, with ride-hailing platforms playing a pivotal role in expanding access to flexible income opportunities across the country.
This is according to a new report commissioned by Bolt and conducted by Ipsos, which was unveiled in Lagos on Tuesday.
The study conducted across Kenya, Nigeria, and South Africa indicates that ride-hailing ranks second to E-commerce as a key livelihood pathway in Africa’s gig economy.
In Nigeria specifically, e-commerce tops in the gig economy with 38%, followed by ride-hailing, accounting for 24% of the economy.
The gig economy refers to income-earning activities conducted outside traditional, long-term employment relationships. As of 2024, the report shows that about three million Nigerians were engaged within the gig economy.
What the report is saying
According to the report, with over 92% of employed Nigerians operating outside formal wage structures, gig work is increasingly emerging as a practical solution for income generation, particularly in periods of economic uncertainty.
- It further shows that among various gig economy segments, ride-hailing accounts for 24% of participation, positioning it as one of the most accessible entry points for Nigerians seeking flexible work arrangements.
- The findings challenge the perception of gig work as short-term or transitional.
- According to the report, 59% of ride-hailing participants remain active on platforms for more than one year, indicating sustained reliance on the sector for income.
Commenting on the report, Senior General Manager, West Africa at Bolt, Teddy Appa-Dankyi, said flexible earning opportunities are becoming central to how many Nigerians earn a living.
- “This report shows that ride-hailing is not just about mobility; it is helping people diversify income, manage financial uncertainty, and participate more actively in the digital economy,” he said.
More insights
The report highlights the role of youth demographics in driving gig economy growth.
While Nigeria’s overall unemployment rate has declined to 2.99%, youth unemployment remains higher at 5.05%, encouraging more young people to explore platform-based income streams.
- This includes combining gig work with education, entrepreneurship, or migration planning, reflecting a broader shift toward multi-income strategies among younger Nigerians.
- Beyond employment access, the report points to the sector’s growing macroeconomic relevance, estimating that gig economy activities contribute approximately 2.8% to Nigeria’s Gross Domestic Product.
- Participation is also linked to improved welfare outcomes. About 64% of respondents reported significant improvements in their standard of living after joining platform-based work, while 31% said their living conditions improved slightly.
Gender gap highlights inclusion opportunity
Despite its growth, the report identifies a significant gender imbalance within the sector. Women currently account for just 3% of ride-hailing participants, highlighting untapped potential for broader inclusion.
Head of Regulatory and Policy, Africa at Bolt, Weyinmi Aghadiuno, said the findings present an opportunity for collaboration among policymakers and private sector players.
- “As flexible earning opportunities become more common across Africa, there is an opportunity for policymakers, platforms and stakeholders to work together to ensure the gig economy continues to expand access to opportunity while remaining sustainable and inclusive,” she said.
The report positions ride-hailing as a critical component of Nigeria’s evolving labour market, offering flexible income streams while deepening participation in the digital economy.
What you should know
Not long ago, Nairametrics reported that a lot of young Nigerians were dropping their 9-5 jobs to join the gig economy.
- The gig economy is part of the labor force that is made up of workers who earn money from short-term contracts or freelance work rather than full-time jobs.
- In most cases, these jobs look at experience rather than qualifications, so they are easier to get. For instance, a start-up can hire a UX designer or writer to work with them up until the launch, based on how attractive their portfolio is, instead of what degrees they have earned.
