Informal sector, heartbeat of Nigeria’s economy – VP Shettima



Informal sector, heartbeat of Nigeria’s economy – VP Shettima

…Informal business cost rises by 80% – Report
…SMEDAN begins free registration for 250,000 informal businesses

By Gabriel Ewepu, Abuja

Vice President Kashim Shettima has reaffirmed the pivotal role of Nigeria’s informal sector, describing it as the “heartbeat of the economy.”

He made the statement in Abuja during the presentation of the Informal Economy Report 2025, powered by Moniepoint Microfinance Bank in partnership with the Federal Ministry of Industry, Trade and Investment and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

Represented by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, the Vice President said the Tinubu-led administration places high priority on the informal sector, which has remained central to Nigeria’s economic resilience.

“The informal economy lies at the heart of Nigeria’s story of resilience, creativity, and enterprise — from market traders to artisans, service providers, and young digital entrepreneurs. Millions of Nigerians power commerce daily in ways that are unseen yet indispensable to our economy,” Shettima said.

He commended Moniepoint for its decade-long contribution to financial inclusion, supporting millions of informal businesses across Africa. The report revealed that women dominate the informal sector and remain the most resilient operators, while youth participation continues to grow rapidly, requiring targeted support.

According to the report, informal business costs have risen by 80% over the past year due to inflation and operational challenges. However, the sector continues to generate significant employment and drive productivity.

Shettima highlighted that Nigeria is home to over 39 million Micro, Small and Medium Enterprises (MSMEs), accounting for about 96% of all businesses, contributing 50% to GDP, and employing over 84% of the workforce.

“This report gives an important window into the challenges and opportunities within the sector. It provides a stronger foundation for inclusive, evidence-based policymaking,” he said.

The Managing Director of Moniepoint Microfinance Bank, Babatunde Olofin, described the report as “a mirror of Nigeria’s economic reality,” adding that it will guide policymakers and financial stakeholders toward greater inclusion.

In his goodwill message, the Special Adviser to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, praised Moniepoint for empowering millions of small businesses through affordable financing.

Also speaking, the Director-General of SMEDAN, Charles Odii, disclosed that small business ownership has grown to 39.6 million nationwide. He added that businesses earning below ₦15 million annually are now exempted from company income tax.

Odii announced that SMEDAN, in collaboration with the Corporate Affairs Commission (CAC), has begun free registration for 250,000 informal businesses to encourage formalization and access to government support.

“We are formalizing small businesses at no cost. The goal is to give them identity, access to finance, and inclusion in the formal economy,” he said.

The event ended with renewed calls for collaboration among government, financial institutions, and entrepreneurs to strengthen Nigeria’s informal economy — the true engine of growth and national stability.

The post Informal sector, heartbeat of Nigeria’s economy – VP Shettima appeared first on Vanguard News.

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