The Nigerian Economic Summit Group (NESG) has projected that the country’s labour market will face significant disruptions in 2025, driven by economic challenges, automation trends, and structural weaknesses.
The combination of high operating costs, declining consumer spending, and digital transformation is expected to reshape employment patterns across key industries.
According to the NESG report titled “Nigeria’s Private Sector in 2025: Adapting to Economic Uncertainty for Growth and Resilience”, several industries—including Manufacturing, Trade, and Services—have already recorded job losses as businesses struggle to survive a harsh economic climate.
Rising business costs, exacerbated by inflation and exchange rate volatility, have forced companies to downsize their workforce to cut operational expenses and remain afloat.
“Nigeria’s labour market will face significant disruptions in 2025 due to persistent economic challenges, automation trends, and structural weaknesses. Rising business costs have already led to job losses in multiple sectors, with businesses downsizing to survive the harsh economic climate. The Manufacturing, Trade, and Services industries have witnessed declining employment levels, as reduced consumer spending and high operating costs force companies to cut expenses,” NES noted.
The growing adoption of automation and digital solutions is expected to accelerate in 2025, displacing workers in sectors such as banking, telecommunications, and customer service. As businesses streamline operations to boost efficiency and reduce costs, the demand for low- and mid-skilled labour will decline significantly.
NESG notes “Automation and digitalisation will result in the displacement of traditional jobs, especially in sectors such as banking, telecommunications, and customer service. Many businesses will increasingly be adopting automated solutions to streamline operations, reducing the demand for low- and mid-skilled labour.”
However, NESG warns that this transition has not been matched by adequate retraining and upskilling programmes, leaving many workers ill-equipped to adapt to the evolving job market. Without comprehensive workforce development initiatives, the unemployment crisis could worsen, leading to widespread socio-economic consequences.
Rising unemployment is expected to have a domino effect on consumer purchasing power, further weakening domestic demand. The NESG report highlights that businesses reliant on household consumption—such as those in retail, real estate, and hospitality—will struggle with declining sales, forcing more companies to shut down or cut staff.
This negative feedback loop will not only stagnate economic growth but also increase social tensions, as workers react to job losses, stagnant wages, and deteriorating working conditions. Experts predict that labour unrest, strikes, and protests will become more frequent in 2025, disrupting business operations and adding to economic uncertainty.
Beyond job losses, the talent retention crisis remains a major concern for businesses. With rising living costs, limited career growth opportunities, and poor working conditions, many skilled professionals are seeking employment abroad.
The NESG noted that the continued exodus of skilled talent poses a severe threat to Nigeria’s long-term economic competitiveness, as companies struggle to find qualified replacements.