‘58% of informal workforce under 34, contributes half of Nigeria’s GDP’

FG affirms, commits to supporting SMEs

The Informal Sector Economic Report launched to improve the growth of Small and Medium Enterprises (SMEs) in Nigeria through inclusion shows that over 58 per cent of Nigeria’s informal workforce is made up of young people below the age of 34.
 
The report also revealed that the Southwest had the largest volume of businesses in the informal economy, including Nigeria’s commercial capital, Lagos.
   
Speaking at the launch in Abuja, the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, said the government would support small businesses to expand.
 
The minister expressed confidence that the report would enhance SME growth and inclusion, affirming that the informal sector contributes significantly to the country’s Gross Domestic Product (GDP).
 
She said: “Put together, businesses in the informal market contribute over half of Nigeria’s GDP. This is evident in their revenues, with the bulk of them (72.3 per cent) hitting monthly revenues of more than N1 million. But their actual profit deviates from these high figures.
 
“Individually, most of them make less than N250,000 monthly. On the higher end of the spectrum, only about 1.3 per cent of businesses in Nigeria’s informal economy earn above N2.5 million monthly.”
 
According to the report, Retail and General Trade is the leading industry within the informal economy, making up 24 per cent of all informal businesses.
 
It said this category, along with Food and Drinks, Fashion and Beauty, and Agriculture collectively account for more than (58.6 per cent) of all informal businesses in Nigeria.
 
The event was organised by Moniepoint Microfinance Bank (MfB), in conjunction with the Ministry of Industry, Trade and Investment and the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN). 
 
The minister noted that the report would help the government better understand the informal sector’s needs and propose solutions that would enhance growth and inclusion in the country.
 
She said: “We will see how we can take every recommendation and move the reports forward. We will support you in doing much better. We will rely on this report to better understand the informal sector and know its needs as it aligns with the Renewed Hope Agenda of financial inclusion in the country.”
 
According to the report, over 58 per cent of Nigeria’s informal workforce is below 34 years old. The largest group, making up 43 per cent, is between 25 and 34. 
 
It added, “The second largest group of young people, 35 to 44-year-olds, represent 28.9 per cent of the sector in Nigeria. This youthful energy offers a tremendous opportunity for socio-economic transformation through innovation, entrepreneurship, job and wealth creation.”

In his address, representative of Vice President Kashim Shettima, his Special Assistant on Financial Inclusion, Nurudeen Zauro, expressed the government’s commitment to supporting efforts to realise President Bola Tinubu’s Renewed Hope Agenda.
 
Speaking earlier, the Managing Director of Moniepoint MfB, Babatunde Olofin, said the bank created an ecosystem where everyone experiences financial freedom that catalyses them to a sustainable future they would be proud of.
 
Olofin explained that with technology, the financial organisation empowers over five million businesses and offers all kinds of payment platforms and banking services.

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