Gig Economy Boosts Living Standard for 64% of Workers in Nigeria — Bolt

Participation in Nigeria’s gig economy is improving the livelihoods of a majority of workers, with 64 percent reporting significant gains in their standard of living and a further 31 percent noting modest increases, according to a new study by ride-hailing platform Bolt, conducted by Ipsos.

The report released on Tuesday highlights the growing role of platform-based work in Nigeria’s evolving labour market, as limited formal employment opportunities and a heavy reliance on informal jobs push more workers toward digital income channels.

Flexible work models such as ride-hailing are increasingly serving as accessible entry points for income generation, enabling workers to adapt to economic uncertainty and diversify earnings.

The gig economy in Africa’s most populous nation is estimated at over $5.17 billion in market size, contributing approximately 2.8 percent to national GDP, underscoring its rising economic significance.

“Flexible earning opportunities are becoming an essential part of how many Nigerians earn today,” said Teddy Appa-Dankyi, senior general manager of West Africa at Bolt. “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.”

Informality driving platform adoption

According to the report, Nigeria’s labour market remains overwhelmingly informal, with more than 92 percent of workers operating outside formal wage structures. This has reinforced the importance of flexible, technology-enabled earning opportunities across the economy.

Among gig economy segments, ride-hailing accounts for about 24 percent of participation, making it one of the most accessible and scalable entry points into platform work.

The findings also suggest that gig work is evolving beyond short-term engagement. Nearly six in 10 participants (59 percent) remain active for more than one year, indicating that platform work is becoming a sustained source of income rather than a temporary fallback.

Youth demographics are playing a key role in the expansion of the gig economy.

While the country’s overall unemployment rate has declined to 2.99 percent, youth unemployment remains higher at 5.05 percent, pushing more young people to explore platform-based work alongside education, entrepreneurship and migration opportunities.

“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 of Africa at Bolt.

The report also points to significant inclusion gaps, particularly along gender lines as women account for three percent of ride-hailing participants, highlighting a major opportunity to expand access and participation within the sector.