Nigeria’s gig economy has grown into a significant force within the country’s labour market, with three million people now engaged in digital platform work, according to a new report by global research firm Ipsos, commissioned by ride-hailing company Bolt. The study reveals that ride-hailing accounts for nearly a quarter of this workforce, making it the second-largest category after e-commerce.
The broader African gig economy, valued at an estimated $5.18 billion, is expanding rapidly as inflation and limited formal employment opportunities push more young people towards self-employment. In 2023, the World Bank reported approximately 17.5 million online gig workers across Nigeria, Kenya, and South Africa. By the third quarter of 2023, 87.3% of employed Nigerians were already self-employed.
Ride-hailing has emerged as a key player in filling employment gaps left by the formal economy. Ipsos found that ride-hailing participation outpaces freelancing, micro-tasks, and remote work, ranking second only to e-commerce. The survey, which included over 250 drivers each in Kenya, Nigeria, and South Africa, showed that 59% of participants remain active for more than a year.
Motivations for joining ride-hailing vary across the continent: in South Africa, drivers seek financial stability; in Kenya, independence and self-sufficiency; and in Nigeria, the flexibility to earn extra income on demand. However, the Nigerian market faces mounting challenges. Rising fuel prices—exceeding ₦1,200 ($0.89) per litre in 2024, up from under ₦1,000 in 2023—naira depreciation, and increasing vehicle maintenance costs are eroding drivers’ profit margins. Despite 64% of surveyed drivers reporting improved living standards, many say they must work longer hours just to cover costs.
The sector also struggles with gender imbalance, with women making up only 4% of ride-hailing workers in Nigeria. In contrast, Kenya and South Africa are seeing gradual improvements through targeted inclusion efforts.
For policymakers, the growth of the gig economy presents both opportunities and challenges. “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,” said Weyinmi Aghadiuno, Head of Regulatory and Policy, Africa at Bolt.
While ride-hailing remains a vital source of income for many, economic volatility and rising operational costs will continue to pressure drivers’ earnings. The report suggests that platform innovation—such as the adoption of electric vehicles—and diversification into parcel delivery and food logistics could help mitigate some of these pressures and ensure the sector’s long-term sustainability.
