Have you noticed the recent raging increase in our youth population? Have you ever witnessed the surge from our public primary and secondary schools when they close for the day? Their numbers are overwhelming; their strength requires a special study. With our median age around 18-19 years and with over 3.5 million young people entering the labour market annually, we are a potential engine for economic renaissance.
The informal sector, already contributing an estimated 58-65% to GDP and employing the vast majority of workers (often over 80% in informal roles), serves as the primary arena where this youth energy manifests. Yet, the true multiplier effect emerges when youth development is pursued across diverse spectrums: skills acquisition, digital literacy, entrepreneurship training, creative empowerment, vocational pathways, and inclusive policies. These interconnected approaches can amplify the hustle boom, transforming survival hustles into scalable enterprises whilst reducing poverty and driving sustainable national growth.
You know what? Digital literacy is no longer an auxiliary skill; it is an economic infrastructure. In Lagos, microfood vendors integrate into delivery platforms, expanding distribution beyond immediate neighbourhoods. In Kano, textile merchants transact nationally via WhatsApp Business. In Port Harcourt and Abuja, freelance programmers access global contracts without traditional corporate employment structures.
Digital enablement collapses geographic constraints and embeds informal enterprises into national and international markets. Systematic broadband expansion, fintech deepening, and structured digital training must therefore be viewed as productivity multipliers, not social interventions.
For instance, a street vendor who is trained in digital marketing can transition to an online boutique, expanding customer reach via Instagram and TikTok, increasing revenue, and creating jobs for peers. Entrepreneurship skills training has significantly enhanced self-employment, innovation, and income generation.
The ICT sector has outpaced traditional contributors, accounting for substantial real GDP growth in recent quarters. When young informal workers gain access to smartphones, affordable data, and online courses, they bridge the digital divide. This not only boosts individual earnings but also stimulates broader economic activity; e-commerce platforms thrive on increased traffic, remittances flow more efficiently through digital channels, and informal enterprises formalise partially, expanding the tax base and productivity.
By combining technical training with access to microfinance, grants, and mentorship, young entrepreneurs in fashion, agro-processing, or services scale operations. Women, who dominate informal activities, can benefit immensely from initiatives that link urban innovators with rural artisans. When we empower female-led ventures, it would foster export potential and gender-inclusive growth. When youth-led collectives form, they share resources, negotiate better terms, and reduce risks, leading to higher success rates and job creation multipliers.
Creative and cultural hustles add yet another vibrant layer. The creative economy, Nollywood, Afrobeats, fashion, and content creation employ millions and enhance soft power. Youth development here involves capacity building in production, branding, and global marketing. A self-taught photographer or music producer, armed with mentorship and digital tools, can export services or content, injecting foreign earnings into the local economy. This spectrum not only generates direct income but also stimulates related sectors like tourism, events, and advertising.
Vocational and agro-based pathways complete the picture. Urban agropreneurs sell via delivery apps, reducing food imports and enhancing supply chains. Broader vocational programmes in automotive, clean energy, and trades prepare youths for future jobs, transitioning informal work toward higher-value roles.
The economic ripple effects are profound. Empowered youths in the informal sector would drive job creation (90% of new jobs stem from here), innovation, and resilience. Skills investment reduces underemployment; this can lift many households out of poverty and boost consumption, creating demand for goods and services. Digital and entrepreneurial gains formalise parts of our economy, expanding revenue for public investments in infrastructure and education. Projections suggest coordinated efforts could cut youth underemployment significantly, create millions of jobs, and accelerate GDP growth toward 4-7% annually, harnessing the demographic dividend instead of risking instability.
In essence, youth development across these spectrums, skills, digital, entrepreneurial, creative, and vocational, fuels the informal sector’s boom and propels broader economic renaissance. It’s no longer about survival; it’s about strategic empowerment.
Our informal sector is not a peripheral anomaly; it is the operational arena of youth ambition. Our streets are filled daily with future entrepreneurs, manufacturers, technologists, creatives, and agribusiness leaders. Whether they remain trapped in subsistence productivity or become drivers of economic renaissance depends on how we can strategically coordinate their future today.
The choice is not between formal and informal economies. The choice is between unmanaged growth and deliberate transformation.
About the writer:
Deborah Yemi-Oladayo is the Managing Director of Proten International, a leading HR consulting firm in Nigeria, specialising in talent development, recruitment, and HR advisory services. Email: [email protected]
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
