How Fintech is Providing Enormous Opportunity For Nigerian Gig Workers

Several years ago, Nigerian gig workers were faced with significant challenges regarding their services, which were majorly on payments.

These challenges were particularly pronounced due to the unique nature of gig work, which often involves short-term contracts, freelance projects, and irregular income. 

However, this narrative has changed due to the rapid and increased emergence of Fintech startups in Nigeria and across the globe.

Chief Operating Officer (COO) of the Fintech Association of Nigeria Dr. Babatunde O. Obrimah during his opening remarks at the Africa Bank 4.0 summit, spoke on the topic “Fintech Innovation: Opportunities for the gig economy- The Nigerian story”, highlighting some of the impacts of fintech evolution on gig workers.

Mr. Obrimah highlighted the intersection of fintech and the gig economy in Nigeria, which includes flexible solutions, and seamless receiving of cash, amongst others. 

He also stated that fintech has presented many opportunities for gig Nigerian workers which includes financial inclusion, which has significantly impacted the country’s economy.

According to a 2022 report, Nigeria’s Gig economy contributes just over 6.1% to global gross domestic product (GDP), averaging between 2% and 7% of national GDPs worldwide.

Notably, Fintech has driven the adoption of the gig economy on a global scale, which has created more seemingly flexible opportunities for people to earn income.

Also, Fintech evolution has presented gig workers with the opportunity to be involved in P2P lending, which is a valuable financial tool.  

P2P lending has contributed in so many ways, which include access to credit, Quick access to funds, reduced dependence on traditional banks, building credit history, etc.

The emergence of fintech has no doubt transformed the financial landscape for Nigerian gig workers, making it easier for them to navigate the challenges of their work, access financial services, and secure their financial future. 

Check Out Other Ways How Fintech is Playing a Vital Role in Empowering Nigerian Gig Workers

• Savings and Investment Tools: Fintech firms offer savings and investment solutions that enable gig workers to set money aside for future needs, emergencies, or retirement. These digital platforms make it easy for individuals to save and invest even small amounts.

• Insurance Products: Several fintech platforms offer affordable insurance products tailored to the needs of Nigerian gig workers, providing coverage for health, accidents, and income protection.

• Tax Compliance: Fintech tools play a vital role in assisting Nigerian gig workers in managing their tax obligations, ensuring that they meet legal requirements and avoid tax-related issues.

• Digital Marketplaces: The fintech-powered gig economy connects workers with clients and offers secure payment processing, ensuring timely and transparent payments for services rendered.

By addressing issues related to irregular income, payment delays, and financial inclusion, fintech has become an essential tool in the Nigerian gig economy, contributing to the financial well-being and stability of workers in the sector.

Fintechs have shown that they have the potential to cater to the specific needs of Nigerian gig workers, making it easier for them to navigate the challenges of irregular income, access financial services, and plan for the future. This, in turn, contributes to economic growth and increased financial inclusion rate in Nigeria.