Nigeria’s informal sector emerged as the largest employer of labour in 2014, creating nearly two-thirds of the total number of new jobs in the economy, according to the National Bureau of Statistics (NBS) in its latest job survey released yesterday. Africa’s largest economy created 1.2 million jobs in 2014, of which the informal sector accounted for 62 percent; the formal sector – 36 percent and the public (government) sector – 2 percent. In growth terms, the informal job count rose by 21 percent (131,000 jobs) compared to 2013; while government jobs shrunk by 80 percent over the same period.
“The informal sector is estimated to account for 58 percent of Nigeria’s GDP, and is responsible for creating more jobs than the formal sector”, according to Lagos- b17 million businesses and enterprises employing over 32 million Nigerians. “Although a large proportion of these enterprises will be classified under the formal sector, it is probable that an even larger proportion operate in the informal economy”, Phillips Consulting reported in its 2014 survey, corroborating the NBS/ SMEDAN report. Informal jobs are defined by the NBS as those generated by individuals or businesses employing “less than 10” persons, or those businesses operating with “little or no structures”, especially in the agriculture and trading sectors.ased consulting firm, Phillips Consulting.
Pelola Odutola, consultant at the firm, says the NBS report is “consistent with our findings” from an informal economy survey published in December 2014. Job creation and employment are some of the critical challenges facing the Nigerian economy, set to be the sixth fastest growing economy in the world in 2015, according to a Bloomberg survey. A key performance indicator for Nigeria’s next president will be creating jobs for over 25 million unemployed youths looking to vote in a tightly run race between the ruling Peoples’ Democratic Party (PDP) and the main opposition All Progressives Congress (APC). Both parties have outlined robust job creation targets as they approach watershed elections on March 28 – the APC targets 3 million jobs a year, while the PDP maintains 1.8 million jobs target, of which 1.2 million were crated under its watch in 2014.
The NBS has faulted general statements that no jobs exist in the Nigeria, citing key statistics as evidence of employment opportunities in a country with 63 percent of the population living below one dollar a day. Yemi Kale, Statistician- General of the Federation, cited the job advertisement market boom as evidence of employment opportunities. The banker turned technocrat, recently alluded to wire reports that “Jobberman is the largest employment website in sub-Saharan Africa, outside South Africa. Last year Jobberman’s revenue grew 125 percent and it placed more than 70,000 people”, Kale posted via social media. In 2010 survey conducted with the Small and Medium Enterprises Development Agency (SMEDAN) the NBS estimated about 17 million businesses and enterprises employing over 32 million Nigerians.
“Although a large proportion of these enterprises will be classified under the formal sector, it is probable that an even larger proportion operate in the informal economy”, Phillips Consulting reported in its 2014 survey, corroborating the NBS/ SMEDAN report. Informal jobs are defined by the NBS as those generated by individuals or businesses employing “less than 10” persons, or those businesses operating with “little or no structures”, especially in the agriculture and trading sectors.
