Ride-hailing Powers $5.17bn Nigeria’s Gig Economy Boom – Report

A new nationwide report commissioned by Bolt and conducted by Ipsos has revealed that Nigeria’s gig economy has grown into a $5.17 billion sector, with ride-hailing emerging as one of its strongest growth drivers and a key source of flexible income across the country.

The report highlights the increasing role of platform-based work in bridging Nigeria’s employment gap, as limited formal job opportunities continue to push many citizens, particularly young people, toward digital earning channels such as ride-hailing and e-commerce.

Findings show that more than 92 per cent of employed Nigerians operate within the informal sector, reinforcing the importance of flexible, technology-enabled work in the country’s labour market. Ride-hailing alone accounts for 24 per cent of gig economy participation, making it one of the most accessible entry points into platform-based income generation.

Speaking at the launch of Bolt’s Gig Economy Report in Lagos, Senior General Manager, West Africa at Bolt, Teddy Appa-Dankyi, said flexible earning opportunities have become central to how many Nigerians sustain their livelihoods.

He noted that ride-hailing goes beyond transportation, playing a broader economic role by helping users diversify income, manage financial pressures, and engage more actively in the digital economy.
The report also showed that gig work is not merely temporary for many participants, with nearly 59 per cent of ride-hailing workers remaining active for more than one year, suggesting the sector provides relatively stable income support.

It further pointed to the role of the gig economy in addressing youth unemployment, which remains higher than the national average, as more young Nigerians turn to flexible work arrangements alongside education, entrepreneurship, and other livelihood strategies.

According to the Ipsos findings, participants are drawn to gig work due to its low entry barriers and daily earning potential. Many respondents said the flexibility of ride-hailing allows them to manage their time while still meeting financial responsibilities.

The study also revealed improvements in living standards among participants, with 64 per cent reporting significant improvements and 31 per cent noting slight improvements since joining platform-based work.
Digital payments are also playing a growing role in the sector’s expansion, with over 85 per cent of ride-hailing transactions now conducted through cashless channels such as bank transfers and POS systems, further supporting financial inclusion.

However, the report raised concerns about gender imbalance in the sector, with women making up just 3 to 4 per cent of ride-hailing participants, underscoring the need for more inclusive participation frameworks.

It also noted ongoing regulatory developments and the increasing role of worker associations advocating for improved welfare and fair practices within the industry.

Despite challenges, the report concludes that Nigeria’s gig economy is evolving from a survival-based alternative into a more structured component of the labour market, with ride-hailing at its core driving digital inclusion, income generation, and the future of work.