Nigeria’s gig economy has grown into a $5.17 billion industry, but the expansion of digital and platform-based work is happening alongside mounting difficulties in the country’s manufacturing sector, raising concerns about the quality and sustainability of economic growth.
A report published by The Guardian today October 30, 2026, citing a study commissioned by ride-hailing company Bolt and conducted by research firm Ipsos, estimates that about three million Nigerians earn a living through the gig economy, which contributes approximately 2.8% to the country’s Gross Domestic Product.
The report identified e-commerce as the largest segment, accounting for 38% of participation, while ride-hailing represents nearly 24%. Freelancing, delivery services and other digital activities make up the remaining share.
The growing industry provides income opportunities for Nigerians struggling to secure conventional employment, particularly amid rising living costs, persistent inflation, foreign exchange volatility, and limited formal job opportunities.
However, its expansion has drawn attention to a wider economic challenge: the increasing dependence on informal and service-based activities at a time when domestic manufacturing continues to face structural difficulties.
According to The Guardian report, data from the Manufacturers Association of Nigeria (MAN) showed that more than 800 formal manufacturing companies had shut down or left the country between 2020 and 2026, while about 350 others experienced distress.
The pressure on manufacturers has been linked to high energy costs, unreliable electricity supply, foreign exchange difficulties, expensive logistics, inadequate infrastructure and limited access to affordable financing.
The situation is reflected in Nigeria’s latest economic performance figures.
Data from the National Bureau of Statistics showed that the economy grew by 4.43% in real terms in the second quarter of 2026, compared with 3.89% in the first quarter.
However, industrial sector growth slowed to 3.96% from 7.46% in the corresponding quarter of 2025.
Manufacturing’s contribution to real GDP also declined to 7.72% in the second quarter from 9.57% in the first quarter of 2026, according to figures cited in the report.
MAN Director-General, Segun Ajayi-Kadir, attributed the industrial slowdown partly to the electricity, gas, steam and air-conditioning supply segment, which contracted by 10.63% during the quarter.
The association has warned that headline economic growth does not necessarily reflect improving conditions across productive industries.
The manufacturing difficulties have also affected multinational companies operating in Nigeria. The Guardian identified companies including GlaxoSmithKline, Procter & Gamble, Kimberly-Clark and Sanofi among businesses that have exited, divested or reduced their local operations amid changing economic conditions.
Beyond factory closures, the consequences extend to employment, domestic production, investment and the country’s dependence on imported goods.
Economist and Centre for the Promotion of Private Enterprise Chief Executive Officer, Muda Yusuf, identified poor infrastructure, high electricity costs, expensive port charges and logistics expenses as major obstacles to manufacturing competitiveness.
He also warned that cheap imports, particularly from Asia, have made it increasingly difficult for some Nigerian manufacturers to compete.
While the gig economy offers an important source of income, experts argue that it cannot independently deliver the industrial capacity, large-scale employment and investment needed for long-term economic development.
A Professor of Economics at the University of Uyo, Okon Joseph Umoh, described gig employment as an important economic shock absorber but maintained that it has limited capacity to achieve broader macroeconomic objectives compared with a properly managed productive sector.
Similarly, Eze Onyekpere, Lead Director of the Centre for Social Justice, argued that gig employment cannot replace conventional employer-employee relationships because it generally offers less job security and fewer employment benefits.
The challenge for Nigeria, therefore, is not to discourage digital entrepreneurship or platform-based work but to ensure that its growth complements rather than distracts from efforts to rebuild domestic production.
Without improved electricity supply, affordable business financing, efficient logistics and a more predictable investment environment, the country risks expanding its informal employment base without creating enough productive industries to sustain long-term economic growth.
