Nigeria’s 6 fastest-growing sectors employ just 2.7% of workers – CardinalStone

Nigeria’s six fastest-growing sectors account for just 2.7% of the country’s workforce despite recording average annual growth rates above 5% over the past three years.

This is according to CardinalStone’s 2026 Mid-Year Economic Outlook.

The investment firm’s latest report highlights a disconnect between the sectors driving Nigeria’s recent macroeconomic gains and those employing the largest share of its workforce.

The report says the imbalance reflects what it describes as Nigeria’s persistent “jobless growth” despite improving macroeconomic fundamentals.

What the report is saying

According to CardinalStone, the Administrative and Support Services sector recorded the strongest average growth over the past three years at 16.1%, yet accounted for only 0.9% of total employment.

• The Arts, Entertainment and Recreation sector followed with an average growth rate of 8.6%, while employing only 0.4% of Nigeria’s workforce.
• Financial and Insurance Activities posted average growth of 6.6% but accounted for just 0.6% of employment, while Mining and Quarrying recorded 6.4% average growth despite employing only 0.2% of workers.
• Similarly, Real Estate grew by 5.9% with 0.3% of total employment, while the Information and Communication Technology (ICT) sector recorded 5.1% average growth over the period but accounted for only 0.3% of Nigeria’s workforce.

Together, the six sectors account for just 2.7% of total employment despite recording some of the strongest growth rates in the Nigerian economy.

• By contrast, agriculture accounted for 30.1% of total employment, wholesale and retail trade 27.5%, and manufacturing 12.7%. Together, the three sectors account for 70.3% of total employment, yet each recorded an average growth rate of less than 2% over the past three years.

CardinalStone said the mismatch helps explain why recent macroeconomic gains have not translated into broad-based improvements in household incomes.

• “This position explains the poor transmission of economic gains to the bottom of the pyramid with the country’s lack of inclusive growth,” the report said.

More insights

The report argues that Nigeria has continued to experience what economists describe as the jobless growth paradox, where sustained economic growth fails to generate a corresponding increase in employment.

• “The issue with growth inclusiveness is not new, as the country has witnessed a pattern in which sustained economic growth failed to commensurately boost the number of jobs over the last decade, a phenomenon known as the jobless growth paradox,” the report said.
• “Low labour-intensive sectors such as oil & gas and services have been the primary drivers of the recent macro gains and, hence, get a proportionate share of the associated income,” it added.

Beyond employment, CardinalStone identified weak labour productivity as another factor limiting inclusive economic growth.

But, despite the concerns over employment and productivity, CardinalStone maintained its forecast that Nigeria’s economy will grow by 4.2% in 2026.

What you should know

Unemployment in Nigeria remains a major economic challenge, with millions of people struggling to secure formal jobs despite gradual improvements in labour market indicators.

• Earlier this year, Nairametrics, citing the World Bank’s latest gender data report, reported that only 10.5% of employed women in Nigeria were engaged in wage and salaried employment as of 2025, highlighting the country’s persistent gender gap in access to formal jobs.
• The findings highlight the continued dominance of informal and vulnerable employment among Nigerian women, despite their relatively strong participation in the labour market.

According to the report, 80.7% of Nigerian women aged 15 years and above are economically active.

However, the vast majority remain concentrated in low-quality jobs that provide limited income security, social protection, and employment benefits.