In Nigeria today, the informal sector is not just a part of the economy — it is the economy for millions. From the bustling markets of Lagos to the street corners of Kano, this vast web of small-scale traders, artisans, and service providers powers the nation in ways often overlooked by official reports and government plans.
The informal economy in Nigeria is huge. According to the National Bureau of Statistics, it contributes nearly 65% of Nigeria’s GDP and employs over 80% of the workforce. Yet, it operates mostly out of sight, with limited access to formal financial services or legal protections. Despite this, it thrives — offering livelihoods, entrepreneurial opportunities, and flexibility that the formal sector struggles to match.
What makes the informal sector truly remarkable is its resilience. When the pandemic hit, many formal businesses folded, but informal traders adapted quickly. They changed their goods, services, and modes of trade to survive. Mobile money agents, street food vendors, tailors, and local transporters kept the wheels turning. This sector is the beating heart of everyday Nigerian life, providing goods and services affordable to the majority.
However, the informal sector faces significant challenges. Many operators lack access to credit and business support, which limits their growth. The absence of social safety nets leaves them vulnerable to economic shocks. Worse still, government policies often overlook or even criminalise informal businesses, pushing many further into the shadows.
For Nigeria to truly develop, policymakers must recognise and support this “real economy.” Integrating informal businesses into the formal framework through training, financial inclusion, and legal protections will unlock enormous potential. The informal sector is not a problem to be fixed but a powerful engine to be fuelled.
The story of Nigeria’s informal sector is one of grit, innovation, and survival. It deserves more than mere statistics — it demands respect and action. Because at the end of the day, it is this sector that keeps Nigeria moving forward, one market stall, one small workshop, and one entrepreneurial spirit at a time.
