The National Bureau of Statistics (NBS) disclosed that 84% of Nigeria’s working-class population is self-employed in the first quarter of 2024, reflecting a decrease from the 87.3% recorded in Q3 2023.
This was according to the Nigeria Labour Force Survey (NLFS) Q1 2024 report by the NBS.
The report indicated a decline of 3.3%-points in the self-employment rate, highlighting a shift within the labor market.
It also noted that the self-employment rate decreased in both rural and urban areas. In rural regions, the self-employment rate fell from 93.7% in Q3 2023 to 91.9% in Q1 2024, marking a 1.8%-point decline. In urban areas, the rate dropped from 80.7% to 78.2%, indicating a 2.5 percentage point decrease.
These figures reflect a gradual reduction in self-employment across the country, potentially due to improvements in wage employment options or challenges faced by small business owners in sustaining operations.
While some states have managed to balance self-employment with formal wage jobs, the informal sector remains critical for economic survival in these regions. Below are the top 10 states with the highest number of self-employed Nigerians in 2023, according to the NBS report:
10. Jigawa
Jigawa rounds out the list with 2.24 million self-employed individuals. The state’s unemployment rate sits at 4%, and like many other northern states, its economy is heavily informal, with 2.24 million people engaged in the informal sector. Jigawa has the smallest wage employment sector on this list, with only 77,062 formally employed workers. This reflects the state’s reliance on subsistence agriculture and small-scale trading for livelihoods.
9. Sokoto
Sokoto, with 2.39 million self-employed individuals, has the lowest unemployment rate on this list at just 1.2%. Despite this, the state has limited formal employment opportunities, with only 93,249 wage-employed workers. The state’s informal sector supports 2.4 million people, highlighting its reliance on small-scale agricultural activities and trading. Sokoto’s economy demonstrates a minimal shift towards formal employment, which could be a factor in its low unemployment rate.
8. Niger
Niger follows with 2.52 million people engaged in self-employment, and a relatively low unemployment rate of 3.2%. Much of the state’s economy revolves around agriculture, as seen in its informal employment sector, which includes 2.57 million workers. Wage employment remains low, with only 134,636 people in formal jobs, indicating a rural, agrarian economy where self-employment is a key source of livelihood.
7. Benue
Benue has 2.62 million self-employed individuals and the lowest unemployment rate on this list, at just 1.6%. This suggests that a majority of the population is engaged in subsistence farming, which dominates the economy. The informal sector comprises over 2.7 million people, while wage employment remains modest, with only 184,089 individuals employed in formal roles. Benue’s reliance on agriculture is evident in these statistics.
6. Oyo
Oyo’s self-employed population stands at 2.83 million, and its unemployment rate is low at 2%. The state shows a better balance between formal and informal sectors, with over 1 million people in wage employment. However, its informal sector is still larger, with 3.57 million people engaged in less formal activities. Oyo’s mix of urban and rural environments supports a variety of economic activities, from small-scale farming to commerce.
5. Kaduna
Kaduna, with 3.13 million self-employed individuals, has a low unemployment rate of 2.7%. The state also has a relatively average formal employment sector, with 459,660 people working in wage employment. However, informal employment is still the dominant force in the state, with 3.43 million people in this sector. This balance between self-employment and formal jobs highlights the mixed economy of Kaduna, driven by both agriculture and industrial activities.
4. Bauchi
Bauchi has 3.25 million self-employed individuals and a moderate unemployment rate of 4.2%. While the state’s wage employment is low, with 177,212 people employed in formal sectors, the informal economy plays a significant role, supporting over 3.3 million individuals. Bauchi’s economy revolves around farming and small-scale trade, making self-employment the key driver of its workforce.
3. Katsina
Katsina ranks third, with 3.65 million people self-employed, supported by an unemployment rate of 2.8%. The state has limited formal wage employment, with only 181,591 individuals in formal jobs. Katsina’s large informal sector, which consists of over 3.6 million people, reflects its agrarian economy, where most residents depend on small-scale farming and other informal activities for their livelihoods.
2. Lagos
Lagos has 4 million self-employed individuals and an unemployment rate of 5.5%. The state’s economy is more diversified compared to others, with over 2 million people in wage employment. However, informal employment is still widespread, with 4.5 million people engaged in less formal activities. Lagos serves as a hub for both formal and informal sectors, reflecting its role as Nigeria’s economic center, yet still showing the challenges of fully formalizing its vast labor force.
1. Kano
Kano tops the list with 4.9 million self-employed individuals, highlighting its role as a major economic center in Northern Nigeria. Despite its relatively high unemployment rate of 7.6%, Kano’s large informal sector, with over 5.1 million individuals, dominates its workforce. The state’s formal wage employment sector is also sizable, with 510,626 people engaged in formal jobs. Kano’s economy is driven by agriculture, commerce, and small-scale industries, making it a key player in Nigeria’s northern economy.