Nigeria’s $5.18bn gig economy booms as factories fail, experts warn

Nigeria’s gig economy, estimated at $5.18 billion, is providing income for millions of young people while manufacturing declines, raising concerns about an economy built on informal work rather than industry.

The Guardian reports that about three million Nigerians earn a living in the sector, with e-commerce making up 38 per cent of participation and ride-hailing nearly 24 per cent. The gig economy contributes an estimated 2.8 per cent to GDP.

Meanwhile, data from the Manufacturers Association of Nigeria (MAN) showed that more than 800 formal manufacturing companies shut down or left the country between 2020 and 2026. The National Bureau of Statistics’ Q2 2026 report put manufacturing’s contribution to real GDP at 7.72 per cent, down from 9.57 per cent in Q1, even as the overall economy grew by 4.43 per cent.

Professor of Economics at the University of Uyo, Okon Joseph Umoh, said: “Gig employment is a critical, non-negotiable economic shock absorber for Nigeria’s immediate unemployment crisis. The gig economy does not replace industrialisation, but it acts as a vital bridge while the country faces severe infrastructure and capital constraints.”