84% of working-class Nigerians are self-employed, says NBS

The National Bureau of Statistics (NBS) has disclosed that 84per cent of Nigeria’s working-class population is self-employed in the first quarter of 2024, reflecting a decrease from the 87.3per cent recorded in Q3 2023.

This is according to the Nigeria Labour Force Survey (NLFS) Q1 2024 report by the NBS.

The report indicates a decline of 3.3percentage points in the self-employment rate, highlighting a shift within the labour market.

Also, the report noted a slight increase of 3.3%-points in wage employment in Q1 2024 to 16per cent, from 12.7 per cent in Q3 2023, which means that more Nigerians got traditional salary paying jobs by early 2024. It reflects a modest but positive change in the employment landscape, indicating a slow but steady workforce absorption into more formal employment sectors.

The report noted that the self-employment rate has also decreased in both rural and urban areas. In rural regions, the self-employment rate fell from 93.7 per cent in Q3 2023 to 91.9 per cent in Q1 2024, marking a 1.8perccnetage point decline.

In urban areas, the rate dropped from 80.7 per cent to 78.2 per cent, indicating a 2.5 percentage point decrease.

These figures reflect a gradual reduction in self-employment across the country, potentially due to improvements in wage employment options or challenges faced by small business owners in sustaining operations.

The report also highlights a gender-based decline in self-employment rates. The percentage of self-employed women decreased by 2.3percentage points, from 90.2 per cent in Q3 2023 to 87.9 per cent in Q1 2024. Among men, self-employment dropped by three percentage  points, from 82.9perccent to 79.9per cent during the same period.

These figures suggest that while both men and women experienced a decline in self-employment, men saw a slightly larger reduction, possibly due to greater access to wage employment opportunities in certain sectors.

According to the report, “The proportion of persons in self-employment declined from 86 per cent in Q1 2023 to 84 per cent in Q1 2024. Survey findings reveal an increase in the share of employed persons primarily engaged as employees between Q1 2024 (16 per cent) and Q3 2023(12.7 per cent). The self-employment rate among females was 87.9 per cent while males was 79.9 per cent. Disaggregation by place of residence, the rate of self-employed persons in rural areas was 91.9 per cent and 78.2 per cent in urban areas.”