Moniepoint informal economy report finds 42% of Nigerian small businesses can’t survive a month without income, spotlighting SME financial fragility

Moniepoint informal economy report has revealed that 42% of Nigerian small businesses cannot survive more than a month without income, underlining the fragile financial state of a vital segment of the country’s economy.

Also read: Greenwich Merchant Bank Meets CBN’s N50bn Capital Requirement

The findings were announced by Moniepoint Microfinance Bank on Thursday, ahead of the full release of the 2025 Informal Economy Report.

The report is backed by the Federal Ministry of Industry, Trade and Investment, along with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

According to the bank, the report underscores the precarious financial footing of small businesses, many of which employ a significant share of Nigeria’s labour force.

“The Informal Economy Report is a robust and important study that examines the informal market and provides fresh insights into its realities,” said Mr. Babatunde Olofin, Managing Director of Moniepoint Microfinance Bank.

He added, “We believe its key outputs will serve ecosystem players and government well in policy direction and execution.”

Nigeria’s informal sector contributes over 80% of national employment and is responsible for much of the country’s day-to-day economic activity.

For millions of Nigerians without formal employment, the sector remains a crucial lifeline for survival and poverty reduction.

The 2025 edition of the report builds on the success of the inaugural publication, which received commendation from the Federal Ministry of Industry, Corporate Affairs Commission, SMEDAN, and various business groups.

Moniepoint said this year’s edition aims to equip policymakers, regulators, and financial institutions with data-driven insights to create supportive policies and strengthen informal enterprises.

With nearly half of small businesses unable to weather income shocks beyond 30 days, the findings are a stark reminder of the need for deeper financial inclusion, better access to credit, and formalisation initiatives.

Also read: Greenwich Merchant Bank Meets CBN’s N50bn Capital Requirement

The full report will be released on Friday and is expected to shape discussions around SME resilience, economic recovery, and employment creation in Nigeria’s fragile post-pandemic landscape.

Moniepoint informal economy report reveals business fragility

Moniepoint informal economy report reveals business fragility