Emerging Challenges of Employment Relations in Nigeria Amidst the Transition to a Digital Economy

Abstract

The contemporary labour market is undergoing rapid transformation driven by automation, digitalisation, and the expansion of platform-based work. These forces are reshaping the traditional employer–employee relationship and redefining the dynamics of employment relations. While global scholarship has examined these shifts extensively, there remains a limited empirical focus on how they manifest within developing economies such as Nigeria. This paper addresses that gap by exploring the emerging challenges of employment relations in Nigeria amidst the transition to a digital economy. The study employed systematic searches across major databases, including Ebscohost, Emerald, Scopus, PsycINFO, and Google Scholar, yielding 190 empirical papers, of which 45 were deemed directly relevant to the Nigerian context. Findings from the literature indicate that digitalisation has enhanced efficiency, connectivity, and access to new opportunities, yet it has also introduced challenges, including precarious work arrangements, skill mismatches, and regulatory complexities. These issues underscore the tension between innovation and the need for equitable labour practices. The paper argues that addressing these challenges requires a multifaceted approach involving governments, employers, workers, and policymakers. In particular, collaborative strategies are needed to safeguard workers’ rights, strengthen institutional frameworks, and promote inclusive participation in the digital economy. The study concludes by recommending targeted upskilling and reskilling initiatives to equip Nigerian workers with the digital competencies necessary for sustainable employment relations. By situating Nigeria’s experience within broader debates on digitalisation and labour, this paper contributes to a deeper understanding how developing economies can navigate the future of work.