By Farida Abdulwahab Oyedele 
The Minister of Industry, Trade, and Investment, Jumoke Oduwole, announced on Friday in Abuja that Micro, Small, and Medium Enterprises (MSMEs) contribute approximately 50% to Nigeria’s GDP and employ over 84% of its workforce.
Speaking at the launch of Moniepoint’s 2025 Edition of the Nigerian Informal Economy Report, Oduwole said Nigeria is home to over 39 million MSMEs, accounting for about 96% of all businesses.
She described the informal sector as “the heart of Nigeria’s story of resilience, creativity and enterprise,” crediting small business owners, artisans, and digital entrepreneurs for keeping trade and services alive in the country.
Oduwole lauded Moniepoint for highlighting emerging trends in the informal economy, stating that such insights are crucial for evidence-based policymaking.
She highlighted the Nigerian government’s efforts to create an enabling environment for MSMEs to thrive, including improving access to finance, simplifying registration and compliance processes, and equipping entrepreneurs with the necessary tools to scale.
The minister also highlighted trade-related incentives under the African Continental Free Trade Area, designed to boost market access for Nigerian businesses.
These include gazetted tax concessions for trading goods and the launch of the Adegboye Export Corridor with Uganda Air, which offers discounted cargo rates to reduce air freight costs.
The report highlights the resilience and fragility of Nigeria’s informal sector, with key findings including 65% of informal businesses recorded revenue growth in the past year, but only 47% reported higher profit due to rising costs.
Cash remains the dominant mode of payment, while about half of business owners prefer to pay suppliers through bank transfers.
Moniepoint identified that limited access to finance, weak business structures, low digital adoption, and poor infrastructure are the key challenges retarding growth.
The report emphasizes the need for improved financial literacy and wider access to affordable digital tools to improve productivity.
Moniepoint urged policymakers and financial institutions to support entrepreneurs with targeted interventions that can guarantee their long-term stability and contributions to the Nigerian economy.