3.2.1. Informal employment

3.2.1. Informal employment

Sources indicated that employment is predominantly informal965 and with low productivity, and that wage-paying jobs were rare and concentrated for the most educated.966 According to Nigeria’s NBS, in June 2024, about 93 % of employment in the country was informal,967 meaning that ‘a vast majority of the country’s workforce is engaged in jobs or businesses that are not formally registered, regulated, or taxed by the government’.968 Women are more likely than men to be in informal employment (96 % compared to 90 %).969 Informality rates are higher in rural areas (97.5 %) than in urban areas (90%).970 With respect to disability in informal employment, 96.4 % of individuals with disabilities who were employed worked in the informal sector, in contrast to 93 % of non-disabled individuals.971 Informal jobs include activities such as street vending, small-scale farming, artisanship, and other small businesses that operate without formal contracts, protections, or access to social security benefits. Labour market experts interviewed by Nigerian news source Business Day indicated that underemployment and informality obscure the actual extent of joblessness in the country, noting that these factors impact government efforts to broaden the tax base for revenue shortfalls and present challenges related to job security, access to credit, and economic vulnerability.972

The Jobberman report indicated that the informal market is largely regulated by ‘gatekeepers’ such as trade associations and cooperatives, which provide financial, administrative, and political support; oversee market operations; and ‘maintain order, safety, and security’. They also act as intermediaries between trade groups and the government at state and local levels. According to the same source, many young people refrain from engaging with ‘gatekeepers’ due to their resistance to innovation and the perception that they serve as vehicles for extortion through ‘membership levies and fees’. The Jobberman report indicated that although these associations are considered ‘exploitative, many local traders and service providers are indebted to them due to their credit facilities, training, apprenticeships, and protection support’.973 Corroborating information could not be found among the sources consulted within the time constraints of this report.

The Jobberman report indicated that survivalist974 workers and enterprises are the most vulnerable in the informal labour force, suffering from poverty, limited education, and few opportunities; often facing precarious employment with long hours, poor pay, and hazardous conditions. They commonly work in public spaces and include casual labourers, unskilled service providers, recyclers, street vendors, industrial outworkers, hawkers, and waste pickers.975