42% of SMEs can’t last a month without income — Moniepoint

Moniepoint Microfinance Bank has revealed that 42 per cent of Nigeria’s small businesses cannot survive for a month without income, according to findings from the second edition of its Informal Economy Report.

In a statement on Thursday, the bank said the report highlighted the fragile financial position of small businesses that employ a large share of Nigerians.

The report, scheduled for release on Friday, received support from the Ministry of Industry, Trade and Investment and the Small and Medium Enterprises Development Agency of Nigeria.

“The Informal Economy Report is a robust and important study that examines the informal market and provides fresh insights into its realities.”

We believe its key outputs will serve ecosystem players and government well in policy direction and execution,” said Managing Director of Moniepoint Microfinance Bank, Mr. Babatunde Olofin.

Nigeria’s informal economy accounts for over 80 per cent of employment and drives most economic activity. For millions excluded from formal job structures, it remains vital for survival and poverty alleviation.

Moniepoint said the report aims to provide evidence-based insights to guide policymakers, regulators, and financial institutions in designing interventions that strengthen and formalise informal enterprises.

The Informal Economy Report 2025 follows the success of the inaugural edition, which earned commendation from the Federal Ministry of Industry, Trade and Investment, the Corporate Affairs Commission, SMEDAN, and leading business associations for providing credible data and actionable recommendations.