The Nigeria Employers’ Consultative Association (NECA) has reaffirmed that the private sector remains Nigeria’s leading driver of employment, providing millions of jobs directly and indirectly across industries, far surpassing government employment.
Speaking during an interview on Channels Television on Tuesday, NECA’s Director-General, Adewale-Smatt Oyerinde, dismissed the long-held belief that the government is the country’s largest employer of labour.
He noted that the depth of employment opportunities created through private businesses extends beyond their direct workforce to value chains that sustain entire communities.
“It is an error to think that the government is the biggest employer in Nigeria.
The private sector remains the bigger employer, and the impact is broader than most people recognise,” NECA Oyerinde stated.
Explaining further, NECA DG Oyerinde, said that when a major company shuts down, the impact is not limited to its direct employees but extends to suppliers, distributors, and service providers.
“For instance, a manufacturing company may directly employ 50,000 workers.
If such a company closes, it is not only those 50,000 jobs that are lost.
At the back end, you have suppliers feeding into the production system, while at the front end you have distributors and retailers depending on the company’s output.
In total, you could be looking at another 100,000 to 150,000 indirect jobs lost,” he noted.
This multiplier effect, he stressed, underscores the private sector’s dominance in job creation and its critical role in stabilising the Nigerian labour market.
While the government plays an important role, its share of the workforce remains much smaller.
According to the Bureau of Public Service Reforms (BPSR), the Federal Government employs about 720,000 civil servants following payroll reforms under the Integrated Personnel and Payroll Information System (IPPIS).
At the state level, Lagos State alone employs about 120,000 civil servants, while other states and local governments add significantly to the national figure.
However, even when combined, public sector employment does not come close to the millions sustained by private businesses across agriculture, manufacturing, oil and gas, construction, ICT, and services.
NECA DG Oyerinde, also acknowledged that despite its central role, the private sector continues to face immense challenges.
These include high inflation, rising energy costs, insecurity, poor infrastructure, multiple taxation, and policy inconsistencies that have forced many companies to scale down operations or relocate to other markets.
“Businesses in Nigeria have shown resilience, but many are under pressure.
For every company that closes or relocates, thousands of direct and indirect jobs are lost.
This is why urgent reforms are needed to ease the burden on businesses and allow them to expand and create more jobs,” the NECA boss warned.
Founded in 1957, NECA serves as the umbrella body of employers in Nigeria’s organised private sector.
It advocates for policies that support businesses, improve labour relations, and boost national productivity.
Oyerinde, who became Director-General in 2022, has consistently urged government at all levels to prioritise business-friendly reforms, industrial growth, and job creation.
He emphasised that Nigeria’s unemployment and underemployment challenges cannot be solved without strengthening the private sector, which already accounts for the majority of jobs in both the formal and informal economy.
Experts agree that the government must create an enabling environment for businesses to thrive. This includes investments in power supply, transport infrastructure, access to finance for SMEs, regulatory consistency, and security.
According to the National Bureau of Statistics (NBS), unemployment stood at 5.5% in Q1 2025, but analysts argue that underemployment and informal sector vulnerabilities mean the real picture is much worse.
The private sector, if properly supported, could absorb millions of jobseekers and reduce the pressure on public employment schemes.
Oyerinde concluded by urging policymakers to see the private sector as a partner rather than a rival.
“The Nigerian economy will only grow sustainably when private businesses are supported to thrive. Every additional job created by the private sector means less strain on government and better livelihoods for citizens.”
With Nigeria facing high youth unemployment and rising cost of living, experts insist that unlocking private sector potential remains the surest pathway to economic growth and social stability.
NECA’s renewed call adds weight to ongoing debates about job creation strategies, particularly as the country seeks to diversify its economy away from oil dependence.