A new report by financial technology firm Moniepoint shows that 44 percent of informal businesses in Nigeria earn less than ₦20,000 a day, despite ongoing efforts to support micro and small enterprises. The study also found that 70 percent of business owners make profits below ₦50,000 daily.
According to the report, the informal economy remains youth-driven, with 73 percent of operators aged between 18 and 44. It also revealed a gender gap, as women-owned businesses dropped to 35 percent, while men account for 65 per cent. Moniepoint said 41 percent of women entrepreneurs earn under ₦10,000 in daily profit, compared to 34 percent of men.
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Cash remains the dominant payment method among informal traders, with one in four businesses reporting that digital payments make up less than 10 per cent of their total revenue. The study noted that low digital adoption, inflation, multiple levies, and limited access to credit continue to constrain profitability and growth.
The South-West, led by Lagos, hosts the largest share of informal businesses, accounting for about one-third nationwide. Moniepoint urged policymakers to simplify registration processes, expand access to credit, and promote digital literacy to help small businesses transition into the formal economy.
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