Nigeria’s expanding gig economy is facing mounting pressure as drivers and delivery riders contend with platform fees and rising operating costs, making gross earnings an increasingly unreliable measure of take-home income.
A 2026 report commissioned by Bolt and conducted by Ipsos estimated Nigeria’s gig economy at $5.17 billion, with about three million people participating in gig work. Ride-hailing and delivery platforms are among the major drivers of the sector’s growth.
For ride-hailing drivers, revenue from completed trips must cover platform commissions, fuel, maintenance, tyres, repairs, insurance, vehicle depreciation and mobile-data costs.
Bolt’s commission varies by city. The company charges 20% in Lagos and 21% in Abuja. In Benin City, its commission increased from 20% to 21% effective January 2026. A driver generating ₦400,000 in qualifying fares in Lagos, for example, would pay ₦80,000 in commission, leaving ₦320,000 before other expenses.
Uber does not currently publish a single nationwide commission rate on its Nigeria driver information page. The company previously said its service fee in Nigerian cities ranged between 20% and 25%, while driver earnings can vary according to location, demand, timing and other factors.
The financial pressure became particularly visible in March when app-based transport drivers in Lagos staged a three-day shutdown from March 16 to 18. Reports linked the action to complaints over low fares, commissions and rising operating costs.
Delivery riders face similar pressures, although their earnings vary according to platform, location, working hours, order volumes and incentives. Chowdeck, meanwhile, has sought to reduce some risks through insurance. Its partnership with MyCoverGenius provides personal accident cover to more than 20,000 riders. The programme commenced in November 2024 and includes protection for accidental medical expenses and temporary disability.
The broader cost environment remains challenging. Nigeria’s headline inflation rate stood at 15.91% in June 2026, while food inflation rose to 17.52%, according to the National Bureau of Statistics.
For gig workers, the more meaningful measure is therefore increasingly net income after operating costs and the effective hourly return, rather than gross platform turnover.
If fares and incentives fail to keep pace with the cost of working, drivers and riders could reduce their hours, switch platforms or leave the sector. For consumers, sustained pressure on worker economics could eventually contribute to higher fares, longer delivery times or reduced service availability.
