Approximately 88.2 percent of Nigerians of working age find themselves without a source of income.
Figures furnished by the National Bureau of Statistics indicate that merely around 11.8 percent of Nigerians within the working-age bracket were participating in paid employment during the initial quarter of 2023.
As per information sourced from asksource.info, wage employment encompasses any form of salaried or remunerated work, whether contractual or not, carried out for another individual, organization, or enterprise, encompassing both formal and informal sectors.
The NBS also revealed a decrease of 1.6 percentage points in the proportion of wage-employed individuals, dropping from 13.4 percent in the fourth quarter of 2022 to 11.8 percent in the first quarter of 2023.
According to the Nigeria Labour Force Survey report for the fourth quarter of 2022 and the first quarter of 2023 by the NBS, it states, “The percentage of wage employment stood at 13.4 percent in Q4 2022 and decreased to 11.8 percent in Q1 2023.”
Notably, the NBS did not present a specific total number for the working-age population in contrast to its prior report.
Back in 2020, the NBS estimated Nigeria’s working-age population to be around 122 million.
Further findings from the NBS unveiled that the majority of Nigerians are self-employed, with only a limited percentage engaged in wage-based employment.
The report underscores, “A majority of Nigerians are self-employed, whereas a smaller proportion holds salaried positions. In Q4 2022 and Q1 2023, 73.1 percent and 75.4 percent of employed Nigerians respectively were involved in their own businesses or farming activities as their primary occupation.”
On the flip side, 13.4 percent (in Q4 2022) and 11.8 percent (in Q1 2023) of employed Nigerians held wage-based positions as their primary employment. Another 10.7 percent (in Q4 2022) and 10.5 percent (in Q1 2023) of employed Nigerians were primarily engaged in supporting household businesses, receiving compensation or returns indirectly, even if it wasn’t their own enterprise.
A small percentage of employed Nigerians were mainly occupied as apprentices or interns (2.6 percent in Q4 2022 and 2.2 percent in Q1 2023). Those assisting household members employed by others constituted about 0.2 percent in both Q4 2022 and Q1 2023.
The report also brought to light the correlation between gender, educational attainment, age, and urban-rural residence with the probability of holding wage-based jobs.
Men in employment were more inclined towards wage-based occupations than their female counterparts. Individuals with higher educational qualifications, particularly those with post-secondary education, were more likely to hold wage-based jobs. People aged above 65 and those aged between 15 to 24 were the least likely to be primarily engaged in wage-based work. Urban-dwellers had a higher likelihood of engaging in wage-based jobs compared to rural-dwellers.
Despite some improvements, Nigeria still grapples with one of the highest unemployment rates in contrast to its neighboring countries.
NBS data showcased an unemployment rate of 0.7 percent in Niger, 3.9 percent in Ghana, 1.5 percent in Chad, and 1.8 percent in Benin. Both Cameroon and Nigeria shared an unemployment rate of 4.1 percent.
However, the NBS’s modified methodology has faced criticism, with opponents arguing that it doesn’t present an accurate reflection of the country’s reality.
