By Femi Adeyemo
May 1st was Workers’ Day in Nigeria, a holiday we’ve been celebrating to honor the hard work and productivity of Nigerians. As we celebrate Workers’ Day in Nigeria, it is essential to reflect on the labor marketplace that seems to have experienced a significant surge in recent years.
The gig economy has created new opportunities for economic empowerment and it is easy to understand the three major reasons behind the growth of the gig economy. Firstly, the high youth population. Nigeria has a large and growing youth population, resulting in a high demand for employment opportunities. The country has the largest population of youth in the world, with a median age of 18.1 years. About 70% of the population are under 30, and 42% are under the age of 15.
Secondly, the lack of formal job opportunities. The formal job market in Nigeria is unable to accommodate the influx of young job seekers, leading to increased unemployment. According to the report by Nigeria’s National Bureau of Statistics, youth unemployment stands at 42.5 per cent. Fittingly, this figure has earned Nigeria second place on the list of countries with the highest unemployment rates.
And lastly, access to smartphones and internet connectivity. The proliferation of affordable smartphones and affordable internet access has enabled more Nigerians to join the gig economy.
It can be said that the ride-hailing sector has become a driving force behind Nigeria’s gig economy, empowering both drivers and riders while contributing to the country’s overall economic growth.
Job Creation and Income Generation
The ride-hailing sector has emerged as a vital source of employment for thousands of Nigerians, especially in urban centers like Lagos, Abuja, and Port Harcourt. By signing up as drivers, individuals can leverage their personal vehicles to earn a steady income on a flexible schedule. This has been particularly beneficial for those seeking additional sources of income or transitioning from traditional employment to more flexible work arrangements.
Flexibility and Autonomy
One of the key attractions of gig work in the ride-hailing sector is the flexibility it offers. Drivers have the freedom to choose their working hours, allowing them to balance work with personal commitments and other responsibilities. This autonomy over their schedule empowers drivers to work when and where it suits them best, providing a level of flexibility often unavailable in traditional employment.
Empowering Entrepreneurship
The ride-hailing sector has also empowered entrepreneurial-minded individuals to establish their own businesses. Many drivers view their vehicles as assets that can generate income beyond just transportation services. Some have diversified their offerings by providing additional services such as delivery, logistics, or running errands through the same platform, thereby expanding their revenue streams and business opportunities.
Access to Financial Inclusion
For many drivers, participating in the ride-hailing sector has provided access to financial inclusion. Through digital payment platforms integrated into ride-hailing apps, drivers can receive payments directly into their bank accounts or mobile wallets. This not only enhances convenience but also facilitates financial transactions, savings, and access to credit and other financial services that were previously out of reach for many.
Boosting Urban Mobility
Beyond its economic impact, the ride-hailing sector has significantly improved urban mobility in Nigerian cities. By providing convenient, affordable, and reliable transportation options, these platforms have helped alleviate congestion, reduce the reliance on informal transit systems, and enhance overall accessibility. This has a ripple effect on productivity, efficiency, and quality of life for urban residents.
A Major Player in the Ride-Hailing Sector
The Nigeria ride-hailing sector is indeed a competitive landscape with several key players. Each one has its own strengths, market presence, and user base. Bolt has certainly made significant strides and gained prominence in Nigeria’s transportation landscape with its expansion to different cities across the country, enhanced earning potentials, improved rider experience, empower economic inclusion, driving innovation amongst others.
Bolt’s entry into the Nigerian market has not only revolutionized transportation but has also catalyzed economic empowerment and growth. Through its platform, Bolt has created a thriving ecosystem of drivers, riders, and partners, driving Nigeria’s gig economy forward. As Bolt continues to innovate and expand its footprint, its impact on Nigeria’s socio-economic landscape is poised to grow, paving the way for a more inclusive and prosperous future.
