In a report released by Moniepoint detailing the informal economy in Nigeria, it was revealed that 90% of businesses in the informal space make less than N500,000 (~$327) in profit in a month.
Details
According to a survey conducted in 2017, 80% of Nigeria’s 40 million MSMEs are set to be in the informal sector.
In the report, Moniepoint captured various data points in the informal sector. Those points include:
- 53.8% of businesses preferred cash payments to Cards (23.1%) and Transfers (23.1%)
- The average monthly income of an informal business is less than N250,000 (~$163).
- 70% of informal business owners borrow money for their business.
- The lifespan of most informal businesses is under 5 years.
Zoom In
In the report, Nigeria’s informal sector is set to largely comprised of Retail MSMEs (24%) and other sectors
The report was conducted by Moniepoint in partnership with SMEDAN and Nigeria’s Federal Ministry of Industry, Trade and Investment.
The report can be found here
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