Nearly eight in ten informal businesses in Nigeria have experienced an increase in operating costs over the past year, according to the Moniepoint Informal Economy Report 2025, released in Abuja on 17 October.
The report revealed that 79 per cent of business owners in the informal sector attributed the rise in expenses to soaring supplier prices, increased transportation costs and the depreciation of the naira.
Informal businesses are defined in the report as small enterprises that are not formally registered with the Corporate Affairs Commission (CAC).
Despite the rising costs, 65 per cent of business owners reported an increase in revenue over the past year. However, only 47 per cent said that this growth had translated into higher profits, indicating that inflationary pressures continue to erode earnings.
Limited Access to Loans
The report also highlighted financial constraints, stating that one in three informal businesses had never received a loan exceeding ₦100,000. Just six per cent reported securing loans of over ₦1 million.
It added that male-owned businesses were twice as likely as female-owned enterprises to obtain loans above ₦1 million.
Moniepoint said it has been developing financial products specifically tailored for informal traders and small-scale entrepreneurs.
“We build solutions that support informal businesses, many of whom have no formal banking history. Through our platform, they can make payments, collect revenue, and even register their businesses to gain access to wider opportunities,” the company said.
