Enhancing the Socio-Economic Contribution of the Nigerian Diaspora in Scotland, evidence and policy options from 2024-2025.

Abstract

The Nigerian diaspora in Scotland represents a growing and very vibrant segment of the country’s multicultural landscape, comprising professionals, entrepreneurs, and skilled migrants. Nigerians possess substantial human and entrepreneurial capital; however, their potential contribution to Scotland’s economy remains underutilised due to barriers such as limited access to finance, skills underutilization, and a lack of structured policy engagement.

This report analyses data from the Office for National Statistics (ONS), the Global Entrepreneurship Monitor (GEM) Scotland 2024–25, and the University of Strathclyde’s Hunter Centre for Entrepreneurship to examine the labour-market outcomes and entrepreneurial impact of migrant communities, using the Nigerian diaspora as a focal case.

Findings show that while immigrant-led firms in Scotland generate over £13 billion annually and provide 107,000 jobs, they face disproportionate challenges in scaling their businesses.

The report concludes with data-driven recommendations for improving skills utilisation, access to finance, and diaspora-government collaboration.

1. Introduction

Migration from Nigeria to Scotland has increased in recent years. According to the UK Home Office, over fifty-two thousand (52,000) Nigerians migrated to the UK in 2024, a significant proportion of whom settled in Scotland’s major cities of Glasgow, Edinburgh, Aberdeen, and Dundee.

These migrants include highly educated professionals from Nigeria’s financial, healthcare, information technology, and education sectors, as well as entrepreneurs. Despite their experience, many face challenges integrating into Scotland’s labour market and business ecosystem.

2. Methodology

This study employed a mixed-methods secondary data analysis, drawing on publicly available datasets and established reports on Scotland’s labour market and entrepreneurial ecosystem. The aim was to examine the socio-economic contribution of Nigerians in Scotland using the best available quantitative indicators and theoretically informed interpretation.

Theoretical Framework

Two working theories guided this study:

1. Human Capital Underutilization Theory (HCUT) - Proposes that migrants with high skills experience reduced economic returns due to structural barriers such as credential mismatch and discrimination. This predicts lower employment outcomes for highly qualified minority migrants.
2. Compensatory Entrepreneurship Theory (CET) - Suggests that migrants respond to labour-market exclusion by creating businesses as an alternative path to economic integration. This predicts higher entrepreneurial activity among minority ethnic or non-EU migrants.

Variables

Dependent Variables

1. Employment Rate (Y₁)

Y₁ = f(X₁, X₂, X₃)

1. Entrepreneurial Activity / Total Early-stage Entrepreneurial Activity – TEA (Y₂)

Y₂ = f(X₁, X₂, X₃)

Independent Variables

X₁: Migrant Status (UK national, EU migrant, Non-EU migrant)

X₂: Ethnicity Category (White, Non-White/BME)

X₃: Qualification Level / Skill Level (derived from ONS labour-market indicators)

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