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, underscoring the fragile financial position of millions of small businesses across the country.
The findings form part of the second edition of Nigeria's Informal Economy Report, which Moniepoint is set to officially launch in Abuja.
The yet-to-be-released report has, however, received generous support from the Ministry of Industry, Trade, and Investment, and the Small and Medium Enterprise Development Agency of Nigeria, SMEDAN.
Nigeria's informal economy is the backbone of the nation's livelihood, accounting for over 80 per cent of employment and driving the majority of economic activity. For millions of Nigerians locked out of formal employment structures, this sector is essential in serving as a bulwark against poverty.
It said, "The Informal Economy Report is 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's Managing Director, Babatunde Olofin.
