The National Bureau of Statistics (NBS), a substantial 88% of employed Nigerians identified as primarily self-employed during the second quarter of 2023.
The NBS, in its latest report titled ‘Nigerian Labour Force Survey (NLFS),’ disclosed that the remaining 12% are predominantly engaged as employees, with an intriguing observation that more women opt for self-employment compared to men.
The report, employing the new methodology of the 19th International Conference of Labour Statisticians (ICLS), highlighted a slight increase in the unemployment rate to 4.2%, a marginal uptick from the 4.1% recorded in Q1 2023.
With 80.4% of Nigeria’s working-age population participating in the survey, the report specified that the unemployment rate among men stood at 3.5%, contrasting with 5.9% among women. Urban areas reported a 5.9% unemployment rate, while rural areas stood at 2.5%.
For the age group of 15-24-year-olds, the unemployment rate in Q2 2023 was 7.2%. The report further delineated that 85.2% of employed men were self-employed, while a higher percentage, 91.0%, of employed women favored self-employment.
Delving into informal employment rates, the figures indicated a staggering 92.7%. Noteworthy was the observation that, as in the past two quarters, women exhibited a higher prevalence of informal employment. Younger individuals (15-24) and those above 65 were particularly prominent in informal employment.
Rural areas boasted a 97.3% informality rate, while urban areas reported a still substantial 88%. The report underscored a negative association between educational qualifications and informality, with 99.6% of individuals with no formal education found to be in informal employment.
Commenting on 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. Beyond financial support, Abideen stressed the importance of training in governance structures, taxation, and accounting, envisioning a more robust and empowered youth sector with enhanced access to investment opportunities.
