MSMEs and Informal Work Drive Nigeria’s Jobs Market

Nigeria’s jobs story is often framed around government hiring and big private companies. But the data suggest a different reality: most Nigerians are employed by the informal economy and by micro, small and medium enterprises (MSMEs).

The latest Nigeria Labour Force Survey shows that informal employment remained extremely high at 93% in Q2 2024. The same report indicates that self-employment accounts for a very large share of jobs, reaching 85.6% of employed people in that quarter. This means millions of Nigerians earn a living through small trading, services, transport, farming, and other informal activities rather than formal salaried roles.

This picture aligns with broader assessments of the economy. A recent Nigerian Economic Summit Group (NESG) report notes that the labour market is heavily concentrated in low-productivity activities, with about 81% of workers in sectors such as subsistence agriculture and retail trade. The report also highlights that structural weakness in the formal private sector has pushed many people into “survivalist” work.

MSMEs sit at the heart of this employment engine. Industry and policy estimates place Nigeria’s MSME count at over 39 million, accounting for about 96% of businesses and over 84% of employment.

While these figures can vary by source and methodology, they consistently point to the same takeaway: small businesses, not large corporations, are carrying the country’s job burden.

Why does this matter? An economy dominated by informal, self-employed work struggles with low productivity, weak social protection, and limited tax collection.

For policymakers, the implication is clear: improving electricity, access to finance, skills, and simpler compliance could help small and informal businesses grow into stable, higher-quality employers. For investors and corporates, the opportunity lies in supporting MSME supply chains and platforms that formalise and scale everyday commerce.