The Fragile State of Small Businesses in Nigeria

A recent report by Moniepoint Microfinance Bank has highlighted the vulnerability of small businesses in Nigeria. According to the report, 42% of small businesses in Nigeria cannot survive for a month without income. This staggering statistic underscores the fragile financial position of these businesses, which employ a significant proportion of Nigerians.

Small businesses play a vital role in Nigeria’s economy, accounting for over 80% of employment and driving most economic activity. For millions of Nigerians excluded from formal job structures, these businesses are crucial for survival and poverty alleviation.

The Informal Economy Report 2025 aims to provide evidence-based insights to guide policymakers, regulators, and financial institutions in designing interventions that strengthen and formalize informal enterprises. By supporting small businesses, we can promote economic growth, reduce poverty, and create a more sustainable future for Nigeria.

Providing access to financial services and support can help small businesses survive and thrive.
Training and capacity-building programs can equip small business owners with the skills they need to succeed.
Policymakers can create an enabling environment for small businesses to operate, by implementing policies that support their growth and development.

By working together, we can build a more sustainable and prosperous future for Nigeria’s small businesses and the millions of people they employ.