42% Of Nigeria’s Informal Sector Lacks Enough Savings To Survive – Report

A new study by Moniepoint Microfinance Bank has revealed that 42 per cent of Nigeria’s informal sector operators do not have enough savings to survive beyond one month without income, highlighting the fragile financial state of millions of small businesses across the country.

The findings form part of the second edition of the Nigeria’s Informal Economy Report, which Moniepoint is set to launch on Friday, October 17, 2025, at the Abuja Continental Hotel.

Unemployment is highlighted as a key driver for a significant portion of the informal sector, with 51.6 per cent of business owners in this space starting their ventures because they were unemployed, according to the Moniepoint Informal Economy Report.

This trend is further contextualised by two other key findings from last year’s report: which revealed that , a massive 80 per cent of businesses in the informal sector have been operating for less than five years, suggesting a high business mortality rate; and second, the sector is heavily youth-driven, with more than half (57.7 per cent) of business owners being under 34 years old.

Moniepoint said the report was designed to provide evidence-based insights that can guide policymakers, regulators, and financial institutions in shaping interventions that strengthen and formalise informal enterprises.

“The Informal Economy Report is a robust and important study that examines the informal market more closely, and curates fresh insights into its realities. We believe its key outputs will serve ecosystem players and government well in policy direction and execution,” said Moniepoint managing director, Babatunde Olofin, in a statement announcing the launch.

The event will attract senior government officials, regulators, lawmakers, industry leaders, trade associations, academics, civil society, and development organisations. Participants will discuss strategies to create a more inclusive and sustainable economic landscape.