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As the online gig economy continues its rapid expansion, many workers—engaged in short-term, contract-based jobs—lament being exploited, as their employers often deny them the rights and social benefits enjoyed by their counterparts in traditional employment. Now, these workers and industry experts are calling for a fairer, more equitable system to safeguard their interests and address these disparities, CHIJIOKE IREMEKA reports
Celine Egbokhare, a gig worker, earns a decent income, yet the reality of her job stretches far beyond its financial rewards.
At just 24, the book proofreader from Edo State appreciates the freedom her gig offers by allowing her to choose working hours and manage her schedule on her terms.
However, beneath this appealing flexibility lies a stark absence of traditional workplace benefits.
An English graduate with aspirations for stability, Egbokhare once longed for a conventional job that promised long-term security, especially as she pondered the uncertainties of old age. But when job hunting yielded no results, she reluctantly turned to gig work on the recommendation of a friend.
Gig work, often facilitated by digital platforms like ride-hailing apps, freelance job boards, and delivery services, has become a defining feature of the modern economy.
Yet, this new wave of employment brings with it a glaring gap: workers like Egbokhare miss out on essential benefits such as health insurance, paid leave, retirement plans, overtime compensation, and job security.
This absence raises pressing questions—are gig workers being exploited, or are they simply adapting to a shifting workforce dynamic?
For Egbokhare, the flexibility remains a powerful draw. The ability to earn money on her own terms and work when she pleases gives her a sense of control. “In some cases,” she explained, “gig workers can earn more per hour than they would in traditional employment, depending on their field and demand for their services.”
“For example, you might be earning good money for your services, which seems like a very good deal compared to the fixed salaries in full-time jobs,” Celine Egbokhare told Saturday PUNCH.
While the pay and flexibility of gig work appear enticing, she emphasised that the appeal fades when placed alongside the broader benefits and legal protections that such roles fail to offer. “I used to proofread an 18,000-word book weekly for a US-based firm, but at one point, it was increased to 22,000 words, despite our original agreement,” she recounted.
Reluctant to jeopardise her job, Egbokhare complied, but she admitted that there were other instances of employer breaches she chose not to disclose, as she continues to maintain the position.
“I wouldn’t want to be seen as fighting my employer,” she explained. “But we need a legal framework that would protect our jobs and rights. Many gig employers are shylocks and don’t care how you feel about their actions.”
Saturday PUNCH’s investigation revealed that gig workers in Nigeria are notably deprived of the social benefits that full-time employees typically enjoy.
While traditional employees often benefit from perks such as health insurance, retirement contributions, paid vacation, sick leave, maternity or paternity leave, and unemployment benefits, these are largely absent in gig work, leaving workers like Egbokhare vulnerable and unsupported.
“The way this job is structured, if you stop working, you stop earning, and that’s why many of us continue working even when it’s not convenient—we don’t want our earnings to stop.
“There have been times when I was indisposed and couldn’t do any work, but I still had to feed. I told myself, ‘Look, you have to work. Nobody knows if you’re sick or well. What they want is your report. If you don’t deliver, they’ll assume you’re not working.’
“After that, I braced up and did what I needed to do. Similarly, if you don’t want to work anymore, you can easily quit without needing to give long notice. The gig has its pros and cons,” Egbokhare shared.
‘I was serially ripped off’
Like Egbokhare, freelance software developer Victor Ozoemena was constantly plagued by the fear of a lack of job security. Not only was he paid a meagre sum that barely covered his living expenses, but the 27-year-old Computer Science graduate was also frustrated by what he described as the deceitful behaviour of several employers he had worked for.
“I have been a software developer for 10 years and I have nothing to show for it. My friends who transitioned into tech have bought their first houses, gotten married, or landed jobs that pay them in dollars,” he lamented in an emotion-laden tone.
Recounting his ordeal, Ozoemena said, “The hours I work depend on the nature of the contract and the employer. But most times, I work 30 to 44 hours a week. The amount I am paid also varies depending on the type of software that needs to be built, but it usually ranges from N350,000 to N2m.
“I have been scammed several times, even when I signed a contract. In several cases, my employers kicked me out of my space and blocked me from accessing the servers I was working with after I had finished my work. This has happened more times than I have been paid for a tech gig.”
The Anambra-born man lamented the lack of a leave allowance and other unpalatable experiences he has suffered both within Nigeria and abroad.
“I got a gig in Nigeria to resolve over 4,700 bugs in application software for Android and iOS users. I was going to be paid N750,000, and I did the work within three weeks because I was promised an extra N300,000 if I could resolve it within a month. I was motivated and got the job done.
“After that, I pushed the apps on the App Store and Play Store for testing. As soon as it was confirmed that the app worked properly, I got kicked out of everything, including the servers.
“I sent messages to my employer; he kept reading but never replied. One day, he responded and said that I was disturbing his peace of mind and blocked me. Sadly, I lost that N1,050,000,” Ozoemena lamented.
Still nursing his wounds, he got involved in another gig, this time with a foreign employer. Unfortunately, he suffered the same exploitation, which forced him to develop a strategy to prevent it from happening again.
After signing a contract to build an app and get paid N500,000, his employer added another condition: Ozoemena had to build both the client’s application and the rider/driver’s application.
“I brought out my contract and pointed out where we agreed on one application and not two. He said he wasn’t going to pay me until I built both applications.
“So, because I needed the money, I built both applications, but to my greatest surprise, this man asked me to be grateful that he wanted to pay me N500,000 for both applications, saying that in Nigeria, N500,000 is a lot of money and that some developers don’t make up to N100,000.
“When I eventually received a credit alert, I saw N75,000 from him. I sent him a message, and he said he would give me N500,000 if I built the company’s website and admin dashboard. It was a sad moment for me. I just walked away with the N75,000,” the software developer added.
Decrying his inability to fight for justice, Ozoemena consigned himself to leaving the matter to God “because there was no place to report the company or even the person.”
He lamented, “I wished I could fight the battle, but there was no legal means to get my money. After this experience, I developed a contingency plan where I could remotely shut down or delete the software I developed for any person or organisation if I don’t get paid.”
He added that all the employers who had scammed him internationally were Nigerians, while those whose interactions had been favourable were women and men who live in Asian countries.
The gig economy
The term ‘gig’ is slang for a job that lasts a specified period. Traditionally, the term was used by musicians to define a performance engagement.
Gig workers include freelancers, independent contractors, project-based workers, and temporary or part-time hires. Recent trends indicate that the gig economy is becoming an increasingly important part of the overall economy as more people choose flexible, non-traditional work arrangements over or in addition to traditional employment.
According to the Gig Economy Data Hub, gig work consists of income-earning activities outside of standard, long-term employer-employee relationships.
The Nigerian Bureau of Statistics indicated that the shift towards gig work in Nigeria was driven by a combination of factors, including a growing youth population, high unemployment rates, economic pressures, technological advancements, and workers’ desire for flexibility and autonomy.
The NBS noted that in Q3 2023, 87.3 per cent of employed Nigerians were primarily self-employed, with only 12.7 per cent being primarily engaged as employees.
It noted that as the unemployment rate continued to rise, more individuals sought alternative means of earning income, and the gig economy emerged as a viable solution.
A report from the NBS showed that the unemployment rate in Nigeria increased from 4.2 per cent in Q2 2023 to 5 per cent, with youth unemployment standing at 8.6 per cent.
However, the World Bank stated that as of 2023, there were about 17.5 million online gig workers in Nigeria, Kenya, and South Africa, accounting for 80.6 per cent of internet traffic to online gig platforms from Sub-Saharan African countries.
The Bank stressed that there are 545 online gig-work platforms globally, with headquarters in 63 countries and platform workers and clients in 186 countries.
“Online gig work accounts for 4.4-12.5 per cent of the global labour force, with an estimated 154 to 435 million online gig workers worldwide,” the World Bank noted.
However, amid these challenges, a long-standing issue remains the legal status of gig workers.
Looking ahead
As the Nigerian gig economy continues to grow and evolve, experts say it is clear that its impact on the world of work will be profound. They maintain that Nigeria’s government and policymakers are crucial to harnessing its potential and addressing its challenges, advocating for reform in the gig economy and better protections for gig workers.
A Political Economist at Legacy University, Okija, Anambra State, Dr Vincent Ezeme, urged the government to develop a legal framework and policy document to protect gig workers and ensure they also have decent benefits during and after retirement.
The don explained that effective regulation was also crucial, not only to protect workers’ rights but also to foster innovation and growth in the sector.
Ezeme noted that the challenges of the gig economy call for innovative solutions around social insurance and collective bargaining.
According to him, some experts have proposed offering gig workers a hybrid status, allowing them to enjoy some of the benefits and protections of traditional employees without losing the flexibility that gig work provides.
Others, he said, argued that since gig work has become another source of employment for the majority of young Nigerians, the companies that rely heavily on gig workers should be required to provide benefits like healthcare, paid leave, and retirement contributions to ensure workers aren’t left vulnerable.
“While these people might be earning well through their gig work, the absence of traditional employment benefits raises serious concerns about potential exploitation.
“As the gig economy continues to grow, the need for a fairer, more equitable system that balances the benefits of flexibility with the security of traditional employment becomes more urgent than ever before,” he added.
According to the Principal Partner at Charles I. Ndukwe & Co., Charles Ndukwe, over the years, employers have classified gig workers as independent contractors, a categorisation that gig workers have vehemently opposed.
This dispute, he said, is particularly prevalent in the ride-hailing sector, where drivers have instituted court actions in several jurisdictions to be recognised as employees rather than independent contractors.
Ndukwe lamented that the National Industrial Court had an opportunity to put the debate about the status of gig workers (ride-hailing drivers) under the Labour Act to bed in the case of Oladapo Olatunji & Anor v Uber Technologies System Nigeria Limited & 2 Ors, but this case, which could have set a precedent in Nigeria’s legal system, was dismissed without being decided on its merits. Therefore, in Nigeria, the uncertainty continues.
“Other challenges for gig workers include the potential for exploitation, irregular payment cycles, non-payment at all, and infrastructure limitations. So, we rely on the discretion of the court to determine what happens when such cases are brought before it by an aggrieved party,” he added.
Exploitation continues
Twenty-two-year-old Francis Osubor, a gig worker, finds himself in a precarious situation. As a content strategist for Freight International, he was responsible for overseeing the company’s content.
A Nigerian microbiologist, who completed his first degree in Ghana, Osubor had a writer and graphic designer attached to his team.
According to him, the nature of his job required him to work between two and five hours daily, and up to 25 hours a week, depending on the workload.
“I mostly work with clients outside Nigeria. However, I once worked with a client in Nigeria, and that was my last gig before I enrolled in the Master’s programme at the University of Lagos, Akoka,” he explained.
Osubor has worked with several employers, including Freight International, where he was paid N80,000 per month. However, he received no social benefits or pension scheme.
“I came up with the contract myself, which was a typical freelancer contract, and it didn’t include any social benefits. The reason for this was to maintain my flexibility as a freelancer,” he explained.
The lack of job security is a major concern for Osubor. He has witnessed colleagues being laid off without warning, and he knew he could be the next. This uncertainty made it difficult for him to plan for the future, whether paying bills, taking care of his family, or simply having peace of mind.
Another significant issue was the small salary. He often struggled to make ends meet and frequently had to rely on loans or credit facilities to get by.
His situation underscores the need for better protections and benefits for gig workers. These workers are an essential part of the modern economy, yet they are often treated as second-class citizens.
“It’s time for employers and governments to recognise the value of gig workers and provide them with the security and benefits they deserve. We work hard, hoping that one day, we will enjoy a more secure and stable financial future,” he quipped.
He dreams of saving for retirement, caring for his family, and finding peace of mind, a dream shared by many gig workers, urging employers and governments to help turn such a dream into a reality.
Effective regulation needed
Sustaining this line of argument, Nigeria’s government and policymakers are vital to harnessing its potential and addressing the challenges faced by gig workers.
“Effective regulation is also crucial, not only to protect workers’ rights but also to foster innovation and growth in the sector. The nuanced challenges of the gig economy call for innovative solutions around social insurance, collective bargaining, and legislation to protect these emerging workers,” an economist, Dr Muda Yusuf said.
Yusuf, a former Director General of the Lagos Chamber of Commerce and Industry, emphasised that this would boost the sector in the country and increase its profitability.
Corroborating his views, a human rights activist and lawyer, Emenike Azubuike, said a bill should be sponsored by the National Assembly to make a law that ensures these workers are covered by the law.
The partner of Emerson Azubuike & Co. (Dio-Madumere Chambers) urged the government to recognise these workers as conventional employees and protect their rights to all the benefits granted to their counterparts in conventional employment.
He said, “They contribute to the growth of the economy and should also be protected. For instance, the essence of the pension scheme is to ensure that workers have a secure future. So, they should be enrolled in a Contributory Mandatory Pension scheme with their effort.
“All the government needs to do is to monitor these employers and ensure they do the right thing. They should take contributions from the workers and remit them to their Pension Managers. They should be given leave and leave allowance, among other benefits. On the legal side, we need to sponsor a bill to the NASS, and it should be passed.”
However, efforts to get the President of the Nigeria Labour Congress, Joe Ajaero, to speak on this issue failed, as he didn’t pick up or return several calls made to him.
Also, the NLC Chairperson for the Lagos State chapter, Mrs Funmi Sessi, promised to respond, but she had not done so at the time of filing this report.
“Okay, I will drop my response now. Sorry, I’ve been busy since,” she said to our correspondent in a WhatsApp message on Wednesday.
“Sorry, please, I just drove into Ibadan. I was recording the voice message yesterday when my phone dropped and fell apart until this morning, and I’ve been busy since. But I promise to send it tonight. So sorry about this, sir,” she later sent via WhatsApp on Thursday night after our correspondent had reminded her.
