Millions of Nigerians are working, but many remain trapped in low-paying informal jobs that earn only a fraction of what formal employees take home, according to a new report by Moody’s Ratings.
The ratings agency said informal workers in Nigeria earn nine times less than their counterparts in the formal sector, exposing one of the widest income gaps in Sub-Saharan Africa.
The finding highlights a deeper problem in Africa’s largest economy: Nigeria does not only need more jobs; it needs better-paying and more secure jobs.
Nigeria’s labour market is dominated by informal work. Data from the National Bureau of Statistics showed that informal employment stood at 93% in the second quarter of 2024, even as the unemployment rate was recorded at 4.3%.
That means millions of Nigerians are counted as employed, but many work in small-scale trading, transport, agriculture, construction, domestic services, and other activities that often entail unstable income, limited access to finance, and limited protection.
