Here are the top 4 job-creating sectors in Nigeria

The formalisation of Nigeria’s labour market has created institutional shifts from traditional skills, jobs, and market practices to cutting-edge industries with a reliance on formal education.

The latest informal sector report 2024 by Jobberman “Nigeria’s informal sector: A pathway to sustainable economic transitions for young people” highlighted how four sectors emerged as the highest employers of labour, showcasing their strengths, weaknesses, and potential to the Nigerian economy.

According to the report, the informal sector is dominated by enterprises that operate on a small scale including businesses in Fashion, Crop production, mobile money, food and catering, handwork, artisans, and agro-processing industries that are characterised by ease of entry and exit in highly competitive markets

These sectors were examined from Abuja, Kaduna and Kano states in the north and Lagos, Oyo, and Ogun states in the south.

“The sector contributes to 50 per cent of household income in Nigeria, 90 per cent of all jobs, 80 per cent of employment in the agricultural sector, and is a source of jobs for 90 per cent of females,” the report said.

According to the Nigerian Labour Force Survey by the National Bureau of Statistics (NBS), the influence of the informal sector in Nigeria’s employment figures was felt as the unemployment rate dropped to 4 per cent in 2023, leading to a 76 per cent rise in employment.

However, four major sectors emerged as the top industries with the highest contributor to employed labour in Nigeria and they include:

Agriculture

Nigeria’s agricultural sector is vital to its economy, employing over 36% of the labour force. The sector is largely informal, with smallholder farmers constituting about 80% of the agricultural labour force and accounting for 90% of agricultural produce.

However, formal organisations engage in producing agricultural inputs, while smallholder farmers handle cultivation, with middlemen facilitating interactions between formal organisations and local food producers.

The Creative Industry

The creative sector is the second largest employer of labour in Nigeria, encompassing various fields such as food services, fashion, beauty, lifestyle, skit-making, hospitality, and entertainment.

These subsectors are increasingly becoming tech-enabled to facilitate market access and improve income gains.

Technology, especially social media platforms like YouTube, Instagram, and TikTok, has facilitated talent visibility and sourcing in the creative sector. Women across the country are already using social media platforms especially Instagram and WhatsApp to optimise their businesses.

Digital sector

The digital sector is one of the fastest-growing contributors to GDP and employment. It has created over 2.5 million jobs in the last decade, with tech startups innovating across various industries such as finance, education, healthcare, agriculture, and logistics.

Informal learning through online resources like YouTube, online courses, and peer chats is common, leading to challenges in talent development and market oversaturation at the base level.

Artisian Sector

The growth of the services sector and real estate creates opportunities for skilled and unskilled artisans across industries. Traditionally, workers in this sector are skilled workers with no formal education or at least basic primary education but have undergone training to be proficient in their trade.

Young people largely find artisanal jobs like plumbing, carpentry, repairs, welding, and fabrication highly socially unattractive, and the duration of training usually in local apprenticeship arrangements further details interests.

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