Workers in the Shadows: 93% of Working Nigerians Are Trapped in Informal Jobs, Report Finds

A new report by a leading Nigerian think tank has laid bare the harsh reality of life for most Nigerians: the vast majority of those who work do so without contracts, pensions, or protections of any kind.

The study, released by the Centre for the Study of the Economies of Africa (CSEA) and titled “Poverty and Inequality in Nigeria,” reveals that 93 percent of employed Nigerians operate in the informal economy. From market vendors in Lagos to subsistence farmers in Zamfara, millions of Nigerians are surviving, but not thriving, in a labour market that offers little security or hope for upward mobility.

The finding is just one of many in a report that depicts a nation where poverty is not just a lack of income, but a deep and stubborn absence of access to electricity, to education, to healthcare, and, above all, to opportunity.

A Country Working Without a Net

The informal sector is vast, encompassing everything from street trading and domestic work to motorcycle taxi driving and backyard tailoring. But it is also fragile. Most of these jobs are unregistered and unprotected, making workers highly vulnerable to economic shocks.

What’s more, CSEA reports that over 60 percent of Nigerians are “multidimensionally poor,” a term that means their poverty is defined not only by what they earn, but by what they lack: basic services, decent housing, nutrition, clean water.

The picture is one of a society in which employment often does not equal economic security — a reality that challenges long-held assumptions about work as a pathway out of poverty.

A Divide That Runs Deep

If Nigeria’s poverty has a geography, it follows a familiar map. The north, particularly the rural areas, bears the greatest burden. There, educational attainment is lower, healthcare access is sparse, and infrastructure gaps are wider.

Meanwhile, urban areas, though better served by amenities, are not immune. With rising youth unemployment and increasing cost of living, poverty in Nigeria’s cities is becoming more visible and more volatile.

A Matter of Access

Electricity remains elusive for large segments of the population. Without it, productivity falters, children can’t study at night, and businesses struggle to grow. The health system, too, is chronically underfunded. For the less privileged, a visit to the hospital often means choosing between treatment and financial ruin.

Education, perhaps the most powerful lever for reducing poverty, is uneven in quality and access. In parts of the country, especially in the North, classrooms are overcrowded or non-existent. And when children do go to school, many leave without basic literacy or numeracy skills.

These systemic failures reinforce poverty’s grip, turning what should be ladders of opportunity into closed doors.

Why Poverty Persists

The CSEA report points to structural issues. Poor infrastructure hampers productivity. Years of underinvestment in health and education have stunted human capital. Weak institutions and inconsistent policy implementation mean that even well-meaning initiatives often falter.

Add to this the rising tide of insecurity, insurgencies in the northeast, banditry in the northwest, and the obstacles to poverty reduction grow steeper.

What Can Be Done

The think tank is not without suggestions. It urges formalization of the informal sector not through heavy-handed regulation, but by easing access to credit, markets, and training. It calls for the expansion of social safety nets and targeted subsidies. And it demands bold investments in education and health, particularly in underserved regions.

Underlying all these recommendations is a simple truth: poverty in Nigeria is not a mystery. Its causes are well-documented. What’s missing is the political will and institutional capacity to confront it head-on.

A Tipping Point

With 63 percent of Nigerians living in multidimensional poverty, the nation stands at a critical juncture. If left unaddressed, the report warns, poverty will continue to shape not just the country’s economic future, but its political and social stability. For now, millions remain on the margins working, struggling, waiting.

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