Moniepoint Microfinance Bank has disclosed that 42 per cent of small businesses in Nigeria are unable to survive for more than a month without income. This insight comes from the second edition of its Informal Economy Report, which sheds light on the financial fragility of micro, small, and medium-sized enterprises (MSMEs) across the country.
In a statement released on Thursday, Moniepoint emphasised the urgent need to support Nigeria’s informal sector, which plays a critical role in the economy. The report, due for official release on Friday, was produced with the backing of the Federal Ministry of Industry, Trade and Investment, as well as the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
According to Moniepoint, the Informal Economy Report offers a detailed and data-driven analysis of Nigeria’s vast informal sector an economic segment that contributes more than 80 per cent of the country’s employment and drives most grassroots commercial activity. For millions of Nigerians who lack access to formal employment opportunities, this sector remains a crucial lifeline for income generation and poverty alleviation.
Babatunde Olofin, Managing Director of Moniepoint Microfinance Bank, underscored the significance of the report. “The Informal Economy Report is a robust and important study that examines the informal market and provides fresh insights into its realities. We believe its key outputs will serve ecosystem players and government well in policy direction and execution,” he said.
The alarming finding that 42 per cent of small businesses are just one month away from financial collapse without consistent income reflects the vulnerability of the informal sector. This insight underscores the need for stronger policy interventions, targeted financial support, and improved access to banking and credit facilities.
Moniepoint noted that the report is intended to offer evidence-based recommendations to guide policymakers, regulators, and financial service providers in crafting solutions that empower and formalise informal businesses. Strengthening this sector, the bank said, is vital not only for economic resilience but also for national development and inclusive growth.
The 2025 edition of the Informal Economy Report builds on the success of the inaugural edition, which was widely praised by government agencies, including the Federal Ministry of Industry, Trade and Investment, the Corporate Affairs Commission, and SMEDAN. It also received positive feedback from major business associations for providing reliable data and practical suggestions for supporting the informal sector.
Moniepoint continues to play a leading role in driving financial inclusion in Nigeria, particularly among underserved populations. Through initiatives like this report, the bank aims to highlight the realities of the informal economy and work with stakeholders to create meaningful, sustainable change.
As Nigeria looks to unlock the full potential of its informal sector, insights from the report are expected to play a crucial role in shaping future policies and development programmes.
