Sobering statistics show that politics, political office-holding and, indeed, the gig economy are producing more millionaires and billionaires than manufacturing. This points to an economy on shaky ground. While Nigeria’s $5.18 billion gig economy offers income opportunities, it cannot replace a strong real sector. ENO-ABASI SUNDAY reports that reviving manufacturing through business-friendly policies, low-interest loans and a supportive business environment is vital to economic recovery and providing jobs for the country’s 116.6 million working-age population.

Week in, week out, Lagos-based Terver Iyohen, who lost his job at an insurance firm in 2023, crisscrosses Lagos State, picking up and dropping off intra-city commuters after signing up with a ride-hailing outfit as his fortunes dwindled.

The 46-year-old father of three, who holds a degree in Business Administration from the University of Lagos laments that he barely earns enough to cater for his family. However, as his only source of livelihood, he plies his trade with religious zeal.

As the country’sunemployment crisis worsens, Nigeria is strengthening its position among countries making progress in the global digital labour market, thanks to young people such as Cross River State-born Ushie Ekunke, who have embraced the trend.

Having secured several roles with different international companies over the past couple of years, he is among the talents contributing to Nigeria’s sixth-place ranking globally as an offshore outsourcing destination in the 2026 Global Outsourcing Talent Index.

Last year, Jobberman reported that 62 per cent of international companies were recruiting African youths for full-time remote jobs or through freelance platforms.

“After I was laid off from my 9-to-5 job in 2022, all I had was a mobile phone and my Dell laptop computer. For one year, I submitted over 20 application letters for jobs, but none saw the light of day. It was at that point that my friends introduced me to online opportunities via platforms like We Work Remotely, careerhound.io, grid.com and safetywing.com. Despite being fraught with diverse issues, including exploitation, lack of protection for workers, and extended working hours, the hard currency that is earned turned things around, especially in an economy like ours where the national currency has lost immense value,” Ekunke said.

Medical doctor Chinonso Egemba, better known as Aproko Doctor, has also embraced the digital economy. His distinctive approach to health communication, combining Pidgin English with humour across platforms such as X (formerly Twitter), Instagram, YouTube and Facebook, has earned him millions of followers in Nigeria, across West Africa and among Africans in the diaspora, setting him apart in the field.

His operations have expanded to the point of employing up to 20 staff members. He has also strengthened his brand through major corporate endorsements and collaborations with international, national and subnational health organisations.

As his brand equity grows, collaborations with local and international corporate players to execute public health campaigns have become increasingly common. These partners include the Lagos State Primary Health Care Board, the World Health Organisation (WHO) and health product manufacturers.

Through his distinctive blend of conversational banter, comedy and youth-centric pop culture entertainment on social media platforms, including TikTok, and through live streaming, Habeeb Hamzat, popularly known as Peller, has carved a niche for himself and built a formidable online following.

With much of his audience drawn from Generation Z and other young people, thousands of viewers tune in simultaneously during his live streams. He has disclosed that he earns as much as N15 million to N20 million weekly from the activity.

Recognised as one of Nigeria’s highest-earning independent digital streamers, Hamzat, like other prominent Nigerian online creators, leverages the visibility generated by his viral live streams to secure collaborations and brand placements.

He has also gained recognition for using live digital platforms to build a direct-to-consumer monetisation model that allows him to generate revenue without relying solely on corporate brand deals.

In the last decade or thereabouts, Nigeria has witnessed something akin to a digital gold rush, driven by smartphones and other digital devices, including tablets and laptops. As this online bonanza unfolds, young Nigerians are increasingly turning to digital platforms to create alternative income streams, cope with domestic economic pressures and tap into global earning opportunities. These activities span high-skill technology services, creative industries, digital commerce and micro-tasks, contributing to an estimated gig economy worth about $5.18 billion.

A breakdown of this burgeoning gig economy shows that approximately three million Nigerians earn a living within the ecosystem. E-commerce accounts for 38 per cent of participation, followed by ride-hailing at nearly 24 per cent, while freelancing, delivery services and micro-tasks make up the remaining share. Other digital services through which young professionals earn foreign exchange from international and local clients include content creation, knowledge monetisation, digital products, global freelancing, remote work, e-commerce and dropshipping.

Beyond the growing demand for digital talent, the expansion of the digital labour market is occurring at a time when Nigeria’s domestic labour market is struggling to provide enough quality jobs for those seeking employment.

Official data from the National Bureau of Statistics (NBS) and the International Labour Organisation (ILO) put Nigeria’s working-age population (people aged 15 to 64) at approximately 116.6 million to 118 million. This represents roughly 54 per cent of the country’s total population, while an estimated 76.3 to 79.5 per cent of the working-age population is economically active.

Nigeria’s employed population stands at approximately 84.1 million, with well over 90 per cent of employed people working outside formal wage structures.

With more Nigerians earning a living through these digital activities, the gig economy contributes an estimated 2.8 per cent to the country’s Gross Domestic Product (GDP).

Beyond reflecting young Nigerians’ adaptive response to the government’s and formal economy’s failure to create sufficient jobs, this emerging trend also demonstrates their resilience and capacity for innovation as they navigate an increasingly digital, technology-driven gig economy.

The making of a content creation giant, manufacturing minnow
ACCORDING to experts, the innovative and flexible dynamism of the digital economy, alongside the productive, job-creating and value-adding foundations of a robust manufacturing and agro-processing sector, is essential to a healthy economy. Consequently, the rise of the gig economy at a time when the manufacturing sector is struggling reflects deeper structural problems plaguing the country.

Even as the manufacturing sector comes under increasing pressure, a combination of high energy costs, erratic power supply, decrepit infrastructure, inconsistent policies, protracted trade disputes, galloping inflation, worsening insecurity and limited access to finance for industries constitutes a cluster of debilitating challenges that stifle economic growth.

As the gig economy becomes increasingly crowded, attracting both educated and less-educated Nigerians, the country risks becoming a nation of underemployed hustlers rather than one populated by productive workers employed in industrial complexes. This concern is heightened by the fact that a significant share of the value generated through digital activities flows to foreign-owned technology platforms.

Meanwhile, the country’s tax base risks narrowing, the economy remains dependent on imports from manufacturing countries, and the incomes of digital workers remain highly volatile because they are inextricably tied to international platforms such as TikTok and YouTube, as well as their algorithms.

The damaging effects of these combined challenges are increasingly evident in the gradual erosion of a substantial part of what was once the country’s manufacturing base. For instance, data from the Manufacturers Association of Nigeria (MAN) showed that more than 800 formal manufacturing companies had shut down or left the country between 2020 and 2026, following the distress experienced by about 350 others.

About a year ago, the Organised Private Sector (OPS) reported that at least 61 major multinational and large domestic companies had exited or divested from Nigeria between 2020 and late 2024. Rather than shut down completely, some prominent manufacturing companies opted to close their domestic factories.

During the same period, unsold inventories rose to N350 billion, while foreign exchange challenges, among other major economic difficulties, contributed to the exit of pharmaceutical giants such as Sanofi Nigeria Limited and GlaxoSmithKline (GSK). Other companies that followed suit included Unilever Nigeria Plc, Procter & Gamble Nigeria, Shoprite Nigeria, Equinox Nigeria, Bolt Food and Jumia Food Nigeria.

The growing trend of local businesses and multinational companies shutting down or relocating their operations amid soaring operating costs, economic difficulties and currency volatility also saw the departure of at least five prominent companies in 2024: Microsoft Nigeria, TotalEnergies Nigeria, amid divestment strategies, PZ Cussons Nigeria Plc, Kimberly-Clark Nigeria and Diageo Plc.

Just over 24 months later, in 2026, the latest figures from the National Bureau of Statistics (NBS) point to a significant structural decline in manufacturing’s share of the Nigerian economy, despite a modest increase in actual production output.

The NBS’s Q2 2026 Gross Domestic Product (GDP) report specifically noted that manufacturing’s contribution to real GDP fell sharply to 7.72 per cent from 9.57 per cent in Q1 2026. Indeed, while the overall economy grew by 4.43 per cent, largely driven by service industries, the productive and industrial sectors continued to lose ground.

In line with the NBS findings, MAN last month expressed concern over the rapid weakening of the industrial sector, warning that the country’s 4.43 per cent economic growth in the second quarter of 2026 masked the mounting challenges confronting manufacturers.

In its assessment of the Q2 2026 GDP report, MAN noted that although real GDP growth improved from 3.89 per cent in the first quarter to 4.43 per cent in the second quarter, industrial growth almost halved, falling from 7.46 per cent in Q2 2025 to 3.96 per cent in Q2 2026.

The Director-General of MAN, Segun Ajayi-Kadir, attributed the slowdown in industrial growth to the poor performance of the electricity, gas, steam and air-conditioning supply segment, which contracted by 10.63 per cent during the quarter.

He also cited a sharp decline in manufacturing’s contribution to real GDP, which fell from 9.57 per cent in Q1 2026 to 7.72 per cent in Q2. He added that real manufacturing growth declined from 3.29 per cent in the first quarter to 3.24 per cent in the second quarter.

Current trends and developments in the manufacturing sector reflect a deep disconnect between headline economic growth figures and the actual health of the industrial sector.

At the factory of Koolscent Nigeria Limited in the Iyana Ipaja area of Lagos State, the challenges facing small and medium-sized enterprises (SMEs) are evident. Despite supporting more than 100 families through direct and indirect employment, the company continues to grapple with high operating costs that make breaking even difficult.

The Chief Executive Officer of the company, Anietie Nya, said: “Poor power supply, bad roads, high interest rates, etc., create a significant negative impact on businesses across the country as they adversely hinder effective planning, and by extension hinder growth and affect efficient business operations.”

Nya added: “High interest rates remain a major factor in business development as it affects scaling and expansion just the same way it is a setback to manufacturers as they can’t compete effectively both on the continent and in the global market space.”

As an SME owner, Nya explained that staying afloat amid these challenges in Nigeria’s economic environment requires the judicious use of business capital, bulk purchases of raw materials, careful management of production processes to minimise waste, and reducing credit facilities to the barest.

Gig economy as critical, non-negotiable economic shock absorber
TO date, many believe that beneath the hustle-culture veneer of the gig economy lies a network of makeshift bridges erected to compensate for the collapse of the real, productive economy. A thriving economy requires not only strong institutional infrastructure but also substantial domestic manufacturing capacity, value addition in the agricultural sector and industrial productivity. These are areas that gig work alone cannot rebuild or strengthen.

For instance, while gig work offers important income opportunities and global exposure, its underlying vulnerabilities underscore the need for comprehensive economic reforms. Sustained national growth cannot depend solely on gig opportunities; it requires building a resilient real sector alongside creating protected and sustainable employment pathways for all workers.

A Professor of Economics at the University of Uyo, Okon Joseph Umoh, agrees with this position, saying: “There is no gainsaying the fact that the gig sector plays an invaluable role in cushioning the hardships and pressures imposed on millions of Nigerians due to repercussions of macroeconomic shocks and downturns. This sector therefore helps citizens engaged therein to absorb hardships and deprivations. However, the gig sector has limited potential to drive broader economic revival and achieve the broad national macroeconomic objectives of maintaining a low and stable level of unemployment, maintaining a relatively stable price level, maintaining a satisfactory balance of payments position and sustaining a high rate of growth as the struggling real sector would if well managed.”

According to him, a single heavy industry or agro-processing plant creates deeper structural multiplier effects than gig employment. He added: “Gig employment is a critical, non-negotiable economic shock absorber for Nigeria’s immediate unemployment crisis. The gig economy does not replace industrialisation, but it acts as a vital bridge while the country faces severe infrastructure and capital constraints. Therefore, the gig economy in Nigeria constitutes a crucial cushion, not a replacement for the real sector made up of the agricultural, manufacturing and service sectors, which have greater potential in driving long-term economic growth and systemic productivity.

“Moreover, the gig economy, which is mostly informal in nature, lacks the capacity to contribute immensely to capital formation because most actors in the sector fall out of structured corporate tax contributions. The sector, therefore, fails to build state revenue or support institutional infrastructure development. The real value of Nigeria’s gig economy lies in household income stability through the provision of sustained and flexible cash flow to households that are grappling with inflation,” he stated.

Clerics, experts differ on declining manufacturing
INTERESTINGLY, while business leaders lament the chequered path manufacturers are treading, which has left the sector in need of intensive care, clerics, who view the situation from an entirely different perspective, seem to believe that Nigeria is destined for a different kind of revival, one that is spiritual rather than industrial.

Not long ago, the National President of the Pentecostal Fellowship of Nigeria and Presiding Bishop of Sword of the Spirit Ministries, Bishop Wale Oke, sensationally claimed that churches taking over industrial estates that had ceased operations was a sign of revival.

Asked in an interview whether the development would worsen unemployment in the country, he retorted: “Not so at all. You see, the spiritual controls everything. What is happening is a mark of a great revival in our nation. God has opened the heavens upon us graciously and has poured the Holy Spirit upon us, poured His word upon us, and many are turning to the Lord, and the Church is growing. If our people are spiritually sound and healthy, they will impact this nation very positively.”

In a move that seems to suggest that the fire of the upper room and the innovation of the marketplace cannot be evenly yoked, Oke’s colleague in the vineyard, Apostle Arome Osayi, asserted during a recent sermon that has since gone viral: “Our calling as a nation is revival. We are not made to be building engines like the Chinese.”

He further argued that the country was endowed with a unique, covenant-backed spiritual assignment to serve as a hub for end-time missionary manpower and global intercession.

These claims have attracted heavy criticism, with many critics arguing that this strand of theological reasoning promotes economic passivity and the pursuit of shortcuts, among other concerns.

Shedding light on the factors contributing to the decline of the real sector, a prominent economist, policy analyst and public policy advocate, and Founder and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the major challenges affecting competitiveness in the manufacturing sector were largely structural. He described these longstanding problems as factors that drive up operating and production costs and undermine competitiveness.

According to Yusuf, who is also the immediate past Director-General of the Lagos Chamber of Commerce and Industry, the challenges include dilapidated infrastructure, high energy and electricity costs, and exorbitant charges for clearing cargo and raw materials at the ports.

“The cost of logistics (which has been significantly affected by fuel subsidy removal) has remained a major challenge. Whether you are talking about the movement of raw materials or movement of finished goods, the logistics component of manufacturing is very high,” he said.

Another critical challenge, he said, is the influx of goods from Asia, particularly China. Many manufacturing companies have folded because they cannot compete with imported Chinese products. This is especially evident in the textile industry and other consumer goods markets, where Chinese products are extremely cheap, making it difficult for Nigerian manufacturers to compete.

Although current tax laws provide manufacturers with certain incentives and reliefs, including withholding tax concessions and VAT-related incentives for pharmaceutical product manufacturers, Yusuf said the proliferation of taxes remained a concern, particularly where non-state actors were involved.

Critical, actionable steps govt, private sector must take to rejuvenate real sector
WITH the manufacturing sector’s contribution to the economy declining sharply from 29.9 per cent in 1981 to 8.2 per cent in 2024, while its real growth rate fell from 14.7 per cent in 2014 to a paltry 1.2 per cent in 2024, according to data from MAN, a compelling turnaround is needed to reverse the decline and address the mounting challenges hampering economic growth. Without such a recovery, employment generation, industrial development and shared prosperity cannot be guaranteed.

Speaking on the critical steps the government and private sector must take to revive the real sector and boost production, the Lead Director of the Centre for Social Justice, Eze Onyepkere, said: “This is about attacking and loosening the binding constraints on productivity. Two clear examples lead the way. Nigeria’s benchmark monetary policy rate has just been reduced to 23 per cent. South Africa’s rate is 7.25 per cent; Algeria – 2.5 per cent; Morocco – 2.25 per cent; and Kenya – 8.75 per cent. The implication is that single-digit lending rates are the norm in these countries, while the Nigerian lending rate still hovers above 30 per cent.

“Electricity cost as a component of operating expenditure of manufacturing firms in Nigeria hovers between 40 and 50 per cent whilst many African countries record not more than 20-25 per cent. Pray, how do you expect to compete with manufacturers in these countries? Generally, the investment climate in Nigeria in terms of laws and their enforcement, infrastructure, logistics, etc., does not favour productivity. Rather, rent-seeking is favoured,” Onyekpere stated.

The Managing Director and Chief Executive Officer of Crystal Expertise Resources Ltd, Lagos, Dr Makeyoh Michael Oladun, also believes that the gig economy and the real sector are both essential to expanding a country’s productive capacity and helping it achieve self-sufficiency.

Oladun, who is also the Founder of Crystal Academy School, Ogun State, and Chairman of Risqserve Oil Services Ltd, Lagos, noted that the gig economy could help generate the initial financial resources needed to invest in the real sector, which is heavily capital-intensive.

He added that, “If well-structured and effectively managed, the rising number of unemployed youths could be reduced as they could also help in driving up production.”

How Nigeria can achieve true economic revival
WHILE the gig economy represents a valuable complement, a stop-gap measure and a training ground in an economy in disarray, it would be foolhardy for a country with over 100 million young people to assume that it can replace the foundational job-creating power of industries, farms and factories.

Consequently, attention must swiftly shift from celebrating individual hustle to addressing the systemic challenges that have left the real sector comatose.

Agreeing with the argument that a nation’s economy cannot be built around TikTok, Instagram shops, ride-hailing applications and motorcycle deliveries alone, Onyekpere said: “Gig employment cannot replace the normal employer-employee relationship. Essentially, it is episodic, not sustainable and does not provide security of tenure for the employee. It is indeed a stopgap measure that the unemployed resort to pending when they find a normal job.”

The difference between the gig economy and gig employment lies in the legal distinction between a contract of service, which typically establishes an employment relationship, and a contract for service, under which a professional is engaged independently, much like a consultant, for a specific assignment and an agreed fee.

Under a conventional employment arrangement in Nigeria, the employer pays salaries or wages, provides leave allowances, deducts and remits pay-as-you-earn (PAYE) tax, contributes towards pensions and sometimes provides healthcare services or insurance. The employer also provides the tools of work, determines working hours in accordance with the law and generally provides a working environment. In contrast, a gig employer is generally not required to provide these benefits. Instead, the parties negotiate a lump-sum payment, while the worker provides the tools and workspace and, where the nature of the assignment permits, determines their working hours.

Umoh, sharing Onyekpere’s views on reviving the real sector and boosting industrial production, emphasised that the government and private sector must move beyond basic policy formulation to aggressive implementation. The real sector, comprising manufacturing, agriculture and mining, requires immediate relief from high production costs, erratic energy supply and suffocating regulatory bottlenecks.

“Other actions by the government should include expansion of the Bank of Industry (BOI) capital mobilisation to provide accessible, single-digit interest loans targeted strictly at raw material processing, machinery acquisition and manufacturing value chains. Taxes should be consolidated and regulatory bottlenecks streamlined in favour of manufacturers, who currently navigate overlapping federal, state, and local council levies that paralyse their operations.”

Asked how Nigeria could achieve genuine economic revival, Oladun said the most important step was for the government to adopt a zero-tolerance approach to corruption, particularly given the substantial capital investment required to revive the real sector.