Moniepoint Microfinance Bank has disclosed that 42 per cent of small businesses in Nigeria would be unable to operate beyond one month without steady income, highlighting the financial fragility within the informal economy.
The figure is part of findings from the second edition of the bank’s Informal Economy Report, set for public release on Friday. The report, conducted with the backing of the Ministry of Industry, Trade and Investment and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), examines the realities facing micro and small enterprises across the country.
According to Moniepoint, the study aims to provide data-driven insights that will support policymakers, regulators, and financial institutions in creating targeted interventions to strengthen and gradually formalise informal businesses. Nigeria’s informal sector currently accounts for more than 80 per cent of employment and drives a substantial share of economic activity, serving as a lifeline for millions excluded from formal jobs.
“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,” said the Managing Director of Moniepoint Microfinance Bank.
The 2025 edition builds on the success of the inaugural report, which received commendation from the Federal Ministry of Industry, Trade and Investment, the Corporate Affairs Commission, SMEDAN, and major business associations for offering credible data and recommendations. With many small businesses operating without financial buffers, the report underscores the urgent need for policies that address liquidity, access to finance, and long-term sustainability within Nigeria’s informal economy.
