By Chinelo Obogo
The Nigerian Economic Summit Group (NESG) has projected significant disruptions in the country’s labour market in 2025, driven by economic turbulence, automation trends, and structural weaknesses. Rising business costs, declining consumer spending, and a rapid shift towards digital solutions are reshaping 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”, the Manufacturing, Trade, and Services sectors have already recorded job losses as businesses struggle to navigate a challenging economic climate. Inflationary pressures, exchange rate volatility, and high operational costs have forced many companies to downsize their workforce in a bid to stay afloat.
“Persistent economic challenges, automation trends, and structural weaknesses will significantly disrupt Nigeria’s labour market in 2025. The rise in business costs has already led to job losses across multiple industries, as companies cut expenses to survive,” the NESG stated.
A major shift in the labour market is being driven by the increasing adoption of automation and digitalisation. Businesses in banking, telecommunications, and customer service are streamlining operati
ons through technology, leading to a declining demand for low- and mid-skilled workers. While automation is enhancing efficiency and reducing costs, it is also displacing traditional jobs at an accelerated pace.
The NESG warns that this transition is occurring without adequate retraining and upskilling programmes, leaving many workers ill-equipped to adapt to the evolving job market. Without a comprehensive workforce development strategy, rising unemployment could further weaken consumer purchasing power and trigger a chain reaction affecting businesses reliant on household consumption, such as retail, real estate, and hospitality.
This negative economic cycle is expected to not only stall growth but also escalate social tensions. Experts predict a surge in labour unrest, including strikes and protests, as workers respond to job losses, stagnant wages, and deteriorating working conditions.
Beyond job losses, the struggle to retain skilled professionals remains a pressing concern for businesses. The rising cost of living, limited career growth opportunities, and poor working conditions are pushing many talented individuals to seek opportunities abroad.
The NESG report highlights the growing “brain drain,” with professionals in healthcare, construction, ICT, and education increasingly relocating to countries offering better wages and improved working environments. This talent exodus is already impacting service delivery and innovation in Nigeria, raising concerns about long-term economic stability.
As Nigeria faces these mounting challenges, experts stress the urgent need for targeted policies to cushion the impact of automation, support workforce retraining, and improve the overall business environment. Without decisive interventions, the labour market upheaval in 2025 could further deepen economic uncertainty and social instability.