same as in developed countries, there is
irrefutable evidence that Africa has started
embracing the sharing concept in labour.
Key Drivers
• In Nigeria, with over 20.9 million
unemployed people - as at Q4 2018 as
reported by National Bureau of Statistics
(NBS) - freelancing is not only going
to change the way work is done, but
also increase employment rate, as more
graduates embrace this concept to tackle
youth unemployment in the country,
rather than staying idle while job hunting
after graduation. This implies that going
forward, new parameters that leverage
Artificial Intelligence (AI) technology
to track the activities (in terms of hours
spent, delivery deadline and earnings)
of Nigeria-based giggers on freelancing
websites across the world should be
considered in determining employment
and underemployment status.
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• Globalization and wide internet access
will allow for an exponential growth of
the gig labour force in Africa, because the
services rendered by freelancers are not
limited to their geographical location, but
also extends to other continents.
• Another factor that contributes to the
growing appeal of the gig economy is
the exchange rate differential that exists
between the local currency of Nigerian
freelancers and the foreign currency of
their contracting counterparty which
serves as the basis for their pay. The labour
earnings are therefore magnified.
In Nigeria, a lot of freelancers are
seen in the informal sectors such as
transportation, logistics, graphics/web
design, programming, social media
marketing, catering and interior design.
The formal sector such as banks are also
embracing this concept in the area of
mobile agents used in driving mobile
money and financial inclusion in the
country.
The Gig Economy:
Impact on Service
delivery and earnings
The use of gig talent will lead to a reduction
in labour costs. The infusion of giggers
into the workforce reduces the amount
that is spent on payment of benefits,
pension contribution as well as training
cost. They will help bolster organizations’
capabilities as well as control costs.
Furthermore, recruiting giggers might
provide organizations with additional
benefits such as the cosmopolitan skills
experienced giggers come with as a
result of their dabbling into various
sectors of the economy. This is because
the individual will in effect, have been
managing their own business, and this
means they will have variety of skills
apart from core job competencies. These
skills go beyond project management,
budgetary, marketing, problem solving,
negotiating and customer service skills.
The Corvus | September 2019