88% Of Nigerians Self-Employed – NBS

• NBS report shows 88% of employed Nigerians are primarily self-employed, with a marginal increase in the unemployment rate to 4.2%
• Unemployment rate by sex: 3.5% for men, 5.9% for women. Informal employment at 92.7%, higher among women and rural areas

The National Bureau of Statistics (NBS) revealed in its recent report, titled ‘Nigerian Labour Force Survey (NLFS),’ that a staggering 88% of employed Nigerians were primarily self-employed in the second quarter of 2023. The remaining 12% identified are primarily engaged as employees, with the report noting that more women are self-employed than men.

Utilizing the new methodology of the 19th International Conference of Labour Statisticians (ICLS), the report highlighted that the unemployment rate slightly rose to 4.2% during the period, a marginal increase of 0.1% from the 4.1% recorded in Q1 2023.

The NBS reported that 80.4% of Nigeria’s labour force in the working-age population participated in the survey. The unemployment rate by sex was 3.5% among men and 5.9% among women. The urban areas recorded a 5.9% unemployment rate, while rural areas had 2.5%.

The unemployment rate for young people aged 15-24 was 7.2% in Q2 2023. The report revealed that 85.2% of employed men were self-employed, compared to 91.0% of employed women.

The informal employment rate stood at 92.7%, with women having a higher rate than men. Younger individuals (15-24) and those above 65 were more informally employed. The informality rate among people in rural areas was 97.3%, while it was estimated at 88% in urban areas.

The report also highlighted a negative association between educational qualifications and informality, stating that individuals with higher qualifications are less likely to be in informal employment. Notably, 99.6% of people with no formal education were found to be in informal employment.

In response to the report, Olasupo Abideen, founder of Brain Builder Youth Development Initiative, emphasized the need for government empowerment of Medium Small Micro Enterprises (MSMEs) to stimulate job creation. Abideen stressed the importance of training the youth on governance structures, taxation, accounting, and other skills necessary for business growth. He emphasized that empowerment should go beyond financial support, addressing gaps in knowledge and facilitating access to investment opportunities.