A new study by Moniepoint Microfinance Bank has uncovered a concerning trend among Nigeria’s small business community — nearly half of them (42%) would struggle to stay afloat for even one month without steady income.
This insight, drawn from the second edition of the Informal Economy Report, underscores the financial vulnerability of small enterprises that power much of Nigeria’s economy.
Backed by the Federal Ministry of Industry, Trade and Investment and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the forthcoming report sheds light on how deeply the informal sector shapes livelihoods and employment across the country.
“The Informal Economy Report offers data-driven perspectives that can help government and industry players make smarter decisions for national growth,” said Babatunde Olofin, Managing Director of Moniepoint Microfinance Bank. “Its findings are crucial for designing policies that strengthen resilience and expand opportunities for informal business owners.”
Accounting for more than 80 percent of jobs in Nigeria, the informal economy serves as the backbone of everyday trade and survival for millions. Yet, Moniepoint’s research shows how fragile many of these enterprises remain — often operating without financial buffers, formal support systems, or access to credit.
The 2025 edition of the report builds on the success of its first publication, which was praised by government agencies and business associations for its credible insights and actionable policy recommendations.
By spotlighting the realities of small and micro-enterprises, Moniepoint aims to inspire collaborative efforts that not only recognise their contribution but also help transition them toward greater stability and formalisation.
