The Imperative of Protecting Nigerians Working in the Gig Economy
Advancements in technology, mobile penetration, and internet services have led to the emergence of a new economic sub-sector referred to as the gig economy. In a gig economy, temporary and flexible jobs are commonplace, and companies tend to hire independent contractors and freelancers instead of full-time employees. Ride-hailing is the global poster child of this model: Uber, Bolt, and other owners of ride-hailing platforms allow so-called independent workers (drivers) to sign up and connect them with individuals in need of their services.
The pertinent question that keeps resonating is whether drivers who sign up with these companies through their platforms are employees or independent contractors. The answer determines whether those workers are entitled to the protections of Nigerian labour law.
The Test Under Nigerian Law
Under Nigerian law, the relationship between an employee and an employer is assessed primarily through the control test: does the purported employer have the right to control not just what work is done, but how it is done? The integration test asks whether the worker is integrated into the business organisation of the company or remains an accessory to it. The economic reality test considers whether the worker is genuinely in business on their own account.
The central defense of ride-hailing companies is that they are technology companies and that drivers are not a key part of their businesses. On this framing, the companies supply a platform, not a transportation service, and drivers supply transportation as independent businesses. Nigerian courts have been asked to assess this characterisation.
The United Kingdom Supreme Court Decision
In the United Kingdom, the Supreme Court ruled that former Uber drivers who brought proceedings are to be regarded as workers and not as self-employed. In giving its judgment, the Court considered the following:
- Uber was an intermediary party that set the fare and therefore dictated how much drivers could earn.
- Uber set the contract terms and drivers had no say in them.
- Requests for rides were constrained by Uber, which could penalise drivers who rejected too many rides.
- Uber monitored a driver’s service through its star rating system and had the capacity to terminate the relationship if ratings did not improve after repeated warnings.
The UK Supreme Court held that the requirements Uber places on its drivers amount to a sufficient degree of control to justify their classification as workers, entitled to minimum wage and holiday pay protections.
The Nigerian Position and the Path Forward
Hon. Justice B. B. Kanyip, Ph.D., in a Nigerian suit filed against ride-hailing companies, captured the central challenge with precision: forms of work have changed, and the traditional or orthodox distinctions between the worker and the employer require reconsideration in light of those changes. The emergence of platform-based work has outpaced the legislative frameworks designed to govern the employment relationship.
The gig economy will continue to expand in Nigeria. Regulatory authorities would do better to appreciate the changing dynamics of the employment environment and begin to make necessary adjustments to meet the demands of society. Guaranteeing some labour rights to this category of workers, including entitlement to minimum wage and pension contributions, need not unduly interfere with market competition. It is a question of institutional design, and Nigeria has both the legal tools and the judicial capacity to answer it well.
Conclusion
The imperative of protecting Nigerians working in the gig economy is a matter of legal design, not sentiment. The courts of the United Kingdom have shown one path. Nigeria’s legislature and regulatory authorities have the opportunity, and the obligation, to chart a path suited to Nigerian conditions. The workers waiting for that framework have already been waiting long enough.
Further Reading
- Practice Area: Employment and Labour Law at Marturion Legal
- Practice Area: Technology and Digital Law at Marturion Legal
- Related Article: Digital Assets as Securities: The Regulatory Architecture of the Investments and Securities Act, 2025