Nigeria’s ‘forgotten’ informal economy to receive more govt. support

This is according to the Managing Director of Moniepoint Microfinance Bank, Babatunde Olofin, who was speaking during the recent launch of the ‘2024 Nigeria Informal Economy Report’ in the city of Abuja.

The report is powered by Moniepoint in collaboration with the Small and Medium Enterprise Development Agency of Nigeria (known as Smedan) and the Federal Ministry of Industry, Trade, and Investment.

Government commits to supporting informal SMEs

Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, who formally launched the report, reiterated the Federal Government’s commitment to supporting small business operators in the informal sector of the economy. She pointed out that the informal sector, which often appears to be forgotten, would henceforth begin to enjoy government’s interventions and incentives.

“We are really grateful to Moniepoint for conducting this report. It gives us the basis and foundation now to provide targeted intervention as part of the government’s approach to supporting the informal economy,” she said.

“This segment plays a significant role in the Nigerian economy [and] we can now bring them up to enjoy incentives that the government is providing to the broader economy as well.”

Also delivering a goodwill message, the Chairman of the House Committee on Small and Medium Enterprises, Mansur Manu Soro, said the House was taking deliberate steps to prioritise women operating in the informal sector and end gender disparity in earnings.

He added that reports such as this remained a critical tool used in planning by the government and private sector.

Some of the key insights from the report include:

• Retail and general trade is the leading sector within the informal economy, making up 24% of all informal businesses.

• The youthful demographic is a critical driving force of Nigeria’s informal economy, with over 57.7% of business owners being under 34 years old.

• There is untapped earning potential in the informal segment, with the average monthly income below ₦250,000 (US$157.52). On the higher end of the spectrum, only about 1.3% of businesses in Nigeria’s informal economy earn above ₦2.5-million (US$1,777.50) monthly.

You can find out more about the ‘2024 Nigeria Informal Economy Report’ here.