INFORMAL ECONOMY

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

By our African Marketing Confederation News Team | 2024

Minister of Industry, Trade and Investment commits to ‘targeted intervention’ as report into the informal sector is launched in Abuja.

The informal economy contributes substantially to Nigeria’s GDP and can be effectively mobilised to unleash the country’s full economic potential and provide much-needed support to the most vulnerable households.

Nigeria’s Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, launches the informal economy report. Photo: Moniepoint

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.

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.