Nearly Half of Nigerian Households Hit by Job Losses, Business Closures

By Benson Daniel

Nearly half of Nigerian households experienced a major economic setback over the past year, with job losses, business closures and difficulties finding employment affecting 45.3 per cent of households surveyed, according to a new report.

The report, which examined employment conditions and skills needs across Nigeria’s six geopolitical zones, highlights the pressure facing households as workers and businesses struggle to cope with changing economic conditions.

The findings were based on an in person survey of 1,180 respondents across 21 cities conducted between July 7 and 18, 2026. The study found significant differences in the severity of employment challenges across the regions.

The Southeast recorded the highest level of economic disruption, with 66.5 per cent of surveyed households reporting that they had experienced at least one major setback involving job losses, business closures or an inability to find work.

The North Central followed with 61.3 per cent, while the South South recorded 50.3 per cent. The Northeast recorded 40.4 per cent, followed by the Southwest at 32.7 per cent. The Northwest recorded the lowest level among the six zones at 21.5 per cent.

The report also showed that the factors limiting employment opportunities differ considerably across the country.

Low wages were identified as the leading labour market constraint in the Southeast and South South, while respondents in the Northwest and Northeast pointed more strongly to shortages of relevant skills.

In the Southwest, poor infrastructure was identified as the biggest obstacle, followed closely by difficulties accessing capital. In the North Central, access to credit emerged as one of the major challenges affecting employment and business activity.

The findings also revealed a strong willingness among Nigerians to relocate in search of better employment opportunities. About 79.1 per cent of respondents said they would consider moving to another location if they found a good job.

Of that figure, 21.2 per cent said they would definitely relocate, while 57.9 per cent said their decision would depend on the conditions attached to the opportunity. Only 20.9 per cent said they preferred to remain where they currently live.

The South South recorded the highest willingness to relocate, with 92.6 per cent of respondents indicating that they would consider moving for better employment prospects.

The survey further highlighted growing interest in digital skills as Nigerians seek ways to improve their chances in the labour market. Digital skills emerged as the most preferred area of training nationally, selected by 52.7 per cent of respondents.

Demand for digital skills was particularly high in the Southeast, where 71.4 per cent of respondents selected it as their preferred training area. The Northwest recorded 58.5 per cent, while the South South recorded 58.3 per cent.

However, the Northeast differed from the other regions, with construction trades ranking ahead of digital skills among respondents seeking additional training.

The report called for stronger investment in economic corridors linking different regions, expanded digital skills infrastructure, better access to credit for small businesses and the development of a national vocational qualification framework.

It also noted that informal businesses and self employed Nigerians remain an important part of the labour market but often struggle to benefit from existing credit programmes.

The findings underline the scale of the employment challenge facing Nigeria and suggest that tackling the problem will require policies that take into account the different economic conditions and labour needs across the country.

With millions of Nigerians depending on jobs and small businesses for household income, sustained efforts to expand productive employment, improve access to finance and equip workers with relevant skills will remain critical to reducing economic pressure on households.