Gig economy in Nigeria: Blessing or curse for recruitment?

“A man who uses borrowed legs cannot run far.” — Yoruba Proverb

In an age where agility often trumps permanence, this Yoruba proverb offers a cautionary lens through which to view Nigeria’s evolving employment terrain. As the gig economy takes firm root in our labour market, driven by digitisation, unemployment, and shifting worker preferences, we must ask: Are we building sustainable models of work, or simply sprinting on borrowed legs?

Across Nigeria, the rise of gig work, defined by flexible, task-based engagements outside traditional employment contracts, is reshaping how people earn and how organisations recruit. While globally celebrated as a solution to unemployment and skills underutilisation, the gig economy is stirring complex questions about workforce sustainability, labour equity, and the future of recruitment strategy.

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A disruption driven by necessity

The global shift toward flexible work arrangements has not spared Nigeria. Here, the gig economy has emerged not solely from innovation but from necessity. Youth unemployment, underemployment, and economic uncertainty have made gig work not just an option but, for many, a lifeline. In cities like Lagos, Port Harcourt, and Abuja, thousands of young Nigerians now log into platforms like Upwork, Fiverr, PeoplePerHour, and local solutions like FieldInsight and Raenest, offering services in writing, design, data entry, software development, and remote support.

This movement is driven by both push and pull factors: the push of a saturated job market and the pull of borderless opportunity. It is not surprising that Nigeria, with its tech-savvy, entrepreneurial youth population, has quickly become one of the fastest-growing digital labour markets in Sub-Saharan Africa.

Data that reflects a changing reality

According to Q3 2023 data from the National Bureau of Statistics (NBS), 87.3 percent of employed Nigerians are primarily self-employed, while only 12.7 percent hold conventional employment positions. These figures speak to a structural recalibration of how work is accessed and defined.

Globally, the World Bank notes that over 545 online gig-work platforms operate across 63 countries, serving both clients and freelancers in 186 countries. An estimated 154 to 435 million people are engaged in some form of online gig work, accounting for as much as 12.5 percent of the global labour force. These are not marginal figures. They represent a mainstream shift in the employment model, a shift that recruitment professionals in Nigeria must acknowledge, understand, and strategically adapt to.

A double-edged sword for employers

For HR leaders and recruiters, the implications of this evolution are profound. On one hand, gig work offers an expanded pool of talent, one that is mobile, digitally enabled, and project-ready. Organisations can tap into this workforce for short-term needs, hard-to-fill roles, or specialised functions without committing to long-term contracts.

“It is not surprising that Nigeria, with its tech-savvy, entrepreneurial youth population, has quickly become one of the fastest-growing digital labour markets in Sub-Saharan Africa.”

However, there is a cost. Traditional recruitment pipelines are thinning as top talent increasingly opts for the independence and flexibility of freelance work. Recruiters now face the challenge of enticing gig workers into full-time roles or, alternatively, redesigning roles and engagement models to accommodate them. The gig economy has blurred the once-clear boundary between “internal hire” and “external contractor”. This requires HR teams to rethink not just recruitment, but workforce architecture, reward systems, and performance tracking.

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Technology as enabler and gatekeeper

Digital infrastructure is both the enabler and gatekeeper of gig success. Access to reliable electricity, internet, and digital devices remains a critical barrier for many Nigerians. Yet, for those able to overcome these challenges, digital tools open a gateway to income generation and professional development that was previously inaccessible.

For marginalised groups – women, people with disabilities, and rural youth – gig work presents a real chance to participate in the formal economy. It offers locational and temporal flexibility, allowing participation on terms that conventional workplaces often deny. However, these benefits must be weighed against the lack of job security, pensions, and statutory protections that characterise most gig engagements.

Reimagining recruitment in a gig-driven world

Recruitment professionals must now ask: How do we engage a generation that values freedom over formality, flexibility over hierarchy, and skill over tenure?

The answer may lie in building hybrid talent systems, models that integrate gig workers into broader organisational strategies without treating them as afterthoughts. Forward-thinking companies in sectors such as fintech, creative media, and retail are already embracing blended workforces, where core staff work alongside curated teams of contract professionals managed through digital platforms.

This requires recruiters to shift focus from pedigree to performance, from credential-based selection to outcome-driven engagement. It also demands new regulatory thinking: if the line between employee and contractor is blurring, our labour laws, pension frameworks, and social protection systems must evolve to reflect that complexity.

The way forward

Nigeria’s gig economy is not a passing trend, it is the new normal. While it offers an essential lifeline for millions, its success and sustainability depend on deliberate efforts to close the digital divide, promote fair work standards, and support lifelong learning.

For recruiters and HR leaders, the imperative is clear: adapt or risk irrelevance. This means investing in digital infrastructure, developing talent marketplaces, fostering agile workforce planning, and embedding gig intelligence into recruitment processes.

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But we must also be wary of building our economic future on temporary scaffolding. The borrowed legs of gig platforms may get us through the next race, but if we are to run the full marathon of national development, we need to build institutions that foster not just short-term survival, but long-term dignity and productivity in work.

The gig economy is neither a blessing nor a curse. Like most tools, it is neutral. Its impact will depend on how we wield it.

Dr Olufemi Ogunlowo is the CEO of Strategic Outsourcing Limited and writes on HR strategy, workforce innovation, and the future of work for BusinessDay.