Three million Nigerians in gig economy, nearly a quarter in ride-hailing, Bolt report says

Three million Nigerians in gig economy, nearly a quarter in ride-hailing, Bolt report says

Three million people now work in Nigeria’s gig economy, and nearly a quarter of them are in ride-hailing, according to a new report by Ipsos, a global research firm, commissioned by Bolt, obtained by TechCabal.

At an estimated value of $5.18 billion, the gig economy is no longer a minor layer of Nigeria’s labour market. In 2023, there were about 17.5 million online gig workers in Nigeria, Kenya, and South Africa, according to the World Bank.

Prolonged inflation crisis and shrinking formal job opportunities have pushed more young people into self-employment and digital gig work. By the third quarter of 2023, 87.3% of employed Nigerians were already in self-employment.

The report disclosed that ride-hailing, in particular, was filling a gap the formal economy had failed to close. Ride-hailing ranks second only to e-commerce in gig-work participation, ahead of freelancing, micro-tasks, and remote work, Ipsos noted.

Nearly six in 10 participants (59%) remain active for more than one year. Ipsos said it surveyed over 250 drivers each in Kenya, Nigeria, and South Africa.

“Flexible earning opportunities are becoming an essential part of how many Nigerians earn today,” said Teddy Appa-Dankyi, Senior General Manager, West Africa at Bolt during the report’s presentation on Tuesday.

Across Africa, drivers’ motivations are consistent. In South Africa, drivers point to financial stability; in Kenya, independence and self-sufficiency. In Nigeria, it is the ability to earn extra income on demand.

But the appeal in Nigeria is increasingly colliding with reality.

Ride-hailing may be expanding access to income, but higher petrol prices, naira depreciation, rising vehicle maintenance and spare parts costs, and fixed platform commissions are squeezing drivers’ margins.

Fuel prices in Nigeria have risen from less than ₦1000 ($0.74) to over ₦1,200 ($0.89) in 2026.

While 64% of the surveyed participants said their standard of living had improved, drivers also described working longer hours just to stay afloat.

“I drive several hours just to recover costs, but every extra fare helps me keep the car and feed the family,” one of the surveyed drivers was quoted as saying in the report.

There are also structural gaps. Participation remains overwhelmingly male-dominated, with women accounting for only 4% of ride-hailing workers in Nigeria. In markets like Kenya and South Africa, targeted inclusion efforts are beginning to shift the balance, Ipsos stated.

For policymakers, the implication is becoming harder to ignore.

“As flexible earning opportunities become more common across Africa, there is an opportunity for policymakers, platforms, and stakeholders to work together to ensure the gig economy continues to expand access to opportunity while remaining sustainable and inclusive,” said Weyinmi Aghadiuno, Head of Regulatory and Policy, Africa at Bolt.

While the report noted that ride-hailing will remain a primary livelihood source for many across Kenya, Nigeria, and South Africa, economic volatility and rising operational costs will continue to pressure drivers’ earnings.

But platform innovation, including electric vehicle adoption, and drivers expanding into parcel delivery and food logistics, may offer respite, the report noted.