The 2024 Informal Economy Report, compiled by Moniepoint, reveals that a mere 1.3% of Nigerian informal businesses make over N2.5 million in monthly profit.
Despite contributing more than half of the country’s GDP and having 72.3% of these businesses generate over N1 million in monthly revenue, the majority earn less than N250,000 in profit per month.
The report also highlights that a significant portion (68.2%) of the income from these businesses is spent on feeding and family expenses, with 29.7% reinvested in the business. Only a small fraction prioritize reinvestment.
Doris Anita, Minister of Industry, Trade and Investment, expressed confidence that the report would aid the government in understanding the informal sector’s needs and enhancing growth and inclusion.
Charles Odili, Director General of SMEDAN, emphasized the importance of the informal sector, which encompasses approximately 40 million small businesses in Nigeria.
Babatunde Olofin, Managing Director of Moniepoint MFB, noted the report’s focus on the challenges of accessing credit and formalizing businesses in the informal economy.
(Daily Trust)