Nigeria’s gig economy tops $5.17bn as ride-hailing becomes long-term income lifeline

Nigeria’s gig economy has grown to more than $5.17 billion in value, with ride-hailing emerging as a key source of flexible and sustained income for millions of workers, according to a new report commissioned by Bolt and conducted by Ipsos.

The report underscores how economic pressures, limited formal job opportunities and the dominance of informal work are pushing more Nigerians toward digital platforms to earn a living.

It estimates that platform-based work now contributes about 2.8 percent to national gross domestic product, highlighting its growing role in Africa’s largest economy.

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Nigeria’s labour market remains heavily informal, with more than 92 percent of workers outside formal wage structures. This has made gig work, particularly ride-hailing, an accessible entry point into income generation, accounting for 24 percent of participation across gig sectors.

The findings also show that participation in ride-hailing is not short-term for gig participants. Nearly six in 10 participants (59 percent) remain active for more than one year, suggesting that the sector plays a sustained role in income generation rather than serving only as temporary work.

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

Youth employment trends are also shaping participation in the gig economy space. While national unemployment has declined to 2.99 percent, youth unemployment remains significantly higher at 5.05 percent, encouraging more young Nigerians to explore platform-enabled earning opportunities alongside education, entrepreneurship and migration planning.

The report further highlights the broader economic contribution of the sector, estimating Nigeria’s gig economy at over $5.17 billion in market size, with platform work contributing approximately 2.8 percent of national GDP.

Importantly, participation in the gig economy is associated with improved living conditions for many workers. According to the study, 64 percent of respondents reported significant improvement in their standard of living, while an additional 31 percent reported slight improvement after joining platform-based work.

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Weyinmi Aghadiuno, head of regulatory and policy, Africa at Bolt, noted: “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.”

The report also identifies opportunities to improve participation across underrepresented groups, noting that women currently account for just three percent of ride-hailing participants, highlighting the potential for greater gender inclusion in the sector.

Overall, the findings position ride-hailing as an increasingly important component of Nigeria’s evolving workforce structure, supporting flexible income generation and expanding access to digital economic participation.