Nigeria’s employment paradox: Why banks lead and what follows

In 2024, according to a Nairametrics research report, Nigeria’s top 10 listed companies collectively employed 84,491 people and spent nearly ₦1.7 trillion on salaries. At a glance, this might suggest progress in formal job creation. But look closer, and a more troubling pattern emerges: seven of the ten largest employers are banks.

This concentration of employment within the financial sector reveals much about the state of Nigeria’s economy, and it’s not good news.

“The government’s first task is simple but essential: fix the fundamentals. Reliable electricity, modern transport infrastructure, and transparent trade policy are not luxuries; they are preconditions for job creation.”

A service economy without a production engine

Globally, economies that create inclusive, large-scale employment typically do so through manufacturing, agriculture, and technology. These are the sectors that absorb labour across skill levels and geographies. In Nigeria, however, the banking sector—a capital-intensive, skills-specific industry—has become the largest formal employer. This dominance is not a reflection of banking strength alone but of the hollowing out of our productive economy.

Outside of Dangote Cement, Flour Mills, and Julius Berger, few industrial employers crack the top 10. No tech unicorns. No logistics giants. No agro-processors. In a country with over 200 million people, where nearly half the population is under 25, this is not just an imbalance; it’s an economic red flag.

The problem with financial-sector-driven employment

Banking jobs are typically urban, white-collar, and increasingly automated. They serve an important function, but they are inherently limited in their absorptive capacity. Millions of young Nigerians, especially those in rural areas or without university degrees, are locked out of this opportunity loop. What we’re left with is an economy that looks busy on the surface but is deeply exclusionary at its core.

Even more troubling is the fragility of this employment structure. Financial institutions are highly sensitive to macroeconomic shocks: currency devaluation, interest rate hikes, inflation, and regulatory shifts. A policy tweak by the Central Bank can freeze lending, slash profits, and trigger staff cuts. This means that much of our “stable” employment base sits on a fragile foundation.

Read also: African Workforce Summit aims to tackle Nigeria’s soaring unemployment

Productivity vs. Headcount: Who’s really creating value?

It’s important to distinguish between job numbers and economic impact. Using company financials, we can estimate revenue per employee as a proxy for productivity. Here’s what the data tells us:

Flour Mills of Nigeria: ₦222 million revenue per employee

Zenith Bank: ₦142 million

GTCO: ₦126 million

Dangote Cement: ₦76.5 million

While banks deliver strong returns per staff, flour mills outpace them, proving that manufacturing, when done at scale, can be both efficient and expansive. It also shows that Nigeria doesn’t need to choose between profit and people. With the right policies, the country can achieve both.

Where are the next 10 employers?

The next frontier of employment in Nigeria won’t come from expanding teller desks. It will come from sectors that solve real problems at scale.

Technology and fintech are already driving growth but need regulatory clarity to deepen job creation.

Agro-processing, if industrialised, can employ thousands—from farm to factory to export terminal.

Renewable energy, especially solar and mini-grid solutions, has the potential to create both technical and grassroots jobs.

Logistics and warehousing are booming with e-commerce and AfCFTA but need investment in digital tracking, cold storage, and last-mile delivery infrastructure.

These sectors are not just employment-rich—they are resilience-rich. They offer pathways to reduce poverty, rebalance regional inequality, and improve food and energy security.

What government and business must do

The government’s first task is simple but essential: fix the fundamentals. Reliable electricity, modern transport infrastructure, and transparent trade policy are not luxuries; they are preconditions for job creation.

In parallel, Nigeria must implement sector-specific incentives for companies that can deliver both employment and impact. This includes tax holidays, FX access for capital goods, and loan guarantees for firms that build in underserved regions.

On the private sector side, firms must stop waiting for perfect conditions. Manufacturers must scale, banks must fund innovation, and logistics firms must digitise. Most importantly, businesses must begin to view workforce development as a long-term investment, not a short-term cost.

The real risk: A jobless recovery

If we continue on this path, where banks hire the most people while the real economy stagnates, Nigeria risks experiencing a “jobless recovery.” GDP numbers may improve, but the majority of Nigerians will feel no difference in their daily lives. This disconnect fuels distrust, brain drain, and social instability. It doesn’t have to be this way.

Nigeria has the population, the resources, and the market to build a balanced, diversified employment ecosystem. But doing so will require more than analysis. It demands courageous leadership, intentional policymaking, and a long-term national vision.

Banks will always be important. But they cannot carry the weight of a nation’s labour force. For Nigeria to thrive, we must move from circulation to creation, from service-heavy to production-strong.

The window for that transformation is narrowing. The time to act is now.

Prof. Sarumi is the Chief Strategic Officer, LMS DT Consulting, Faculty, Prowess University, US, and ICLED Business School, and writes from Lagos, Nigeria. He is also a consultant in TVET and indigenous education systems, affiliated with the Global Adaptive Apprenticeship Model (GAAM) research consortium. Tel. 234 803 304 1421, Email: leadershipmgtservice@gmail.com.