The Nigerian Economic Summit Group (NESG) has outlined six approaches under the Nigeria Works Framework, to improve Nigeria’s labour market cituation, even as it races to generate 4.55 million formal jobs yearly.
According to the NESG, the approach outlines the building blocks for Nigeria’s changing labour market. Hence, achieving this target requires significant economic reform and investment in labour-intensive sectors capable of absorbing the growing workforce.
Data from the National Bureau of Statistics (NBS) and the the World Bank, had pointed out, that in order to maintain the current unemployment rate of 4.3 percent, Nigeria therefore needs to create at least 4.55 million net formal jobs each year.
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The NBS and World bank data had further revealed that 93 per cent of Nigerian workers are engaged in informal employment, while 86 per cent are self-employed.This labour structure leaves millions without job security, social protection, or stable income, underscoring the urgent need for structural reforms and inclusive job creation strategies.
With the country’s population projected to reach 275 million within the next five years, the workforce continues to expand rapidly. An estimated 3.5 million Nigerians enter the labour market each year, which intensifies the pressure on an already fragile job market.
Experts warn that unless urgent steps are taken to create formal employment opportunities, the country’s unemployment and underemployment rate could climb to 30 per cent by 2030, worsening income inequality and pushing more citizens into poverty.
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At present, only 7 per cent of Nigeria’s workers are employed in the formal sector. To meet the 2030 target, this share must rise to 33 per cent, representing a major structural shift in the economy.
Analysts say achieving this goal will depend on policies that stimulate private-sector growth, support small and medium-sized enterprises (SMEs), and attract investment into manufacturing, agriculture, and technology.
The 6 approaches to drive job creation
The Nigeria Works Framework framework approach outlines the comprehensive plan to drive job creation, enhance productivity, and expand formal employment through six interconnected pillars which are:
Skills for productivity
This framework emphasises reforming education and training systems to prepare the workforce for both current and future jobs. It calls for investments in basic and secondary education, technical and vocational training (TVET), and digital skill bootcamps. The expected outcomes includes improved employability, higher wages, and increased labour productivity.
Sectoral engines of job growth
Job creation efforts will focus on sectors with high labour absorption potential, such as agro-processing, light manufacturing, construction, professional services, and the digital economy. This pillar seeks to promote industrial strategies, infrastructure development, and funding to enhance firm survival and worker productivity.
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Enterprise-led growth
The framework aims to strengthen micro, small, and medium-sized enterprises (MSMEs) and the formal private sector through improved access to finance, markets, and digital tools. The goal is to stimulate firm-level job creation, business formalisation, and productivity growth.
Informal economy upgrading and inclusion
Recognising that most Nigerians work in the informal economy, this pillar seeks to improve informal market infrastructure, workplace conditions, and social protection. It aims to boost incomes and ensure decent work for informal workers rather than excluding them from development plans.
Data, institutions and accountability
This component focuses on building reliable data systems, institutional reforms, and strong governance mechanisms to guide evidence-based policy decisions. The goal is to ensure accountability, promote sustainable job creation, and enhance overall productivity.
Productivity for prosperity
The framework proposes a national productivity strategy and firm-level technical support to drive competitiveness and economic prosperity.