By Erewunmi search

A new report by Moniepoint Inc., in partnership with the International Finance Corporation (IFC), has revealed that 41 percent of women-owned informal businesses in Nigeria earn less than ₦10,000 in daily profit.

The report, titled “Informal Economy Report 2025,” highlights the financial struggles facing small-scale entrepreneurs—especially women—who form a large part of Nigeria’s informal sector.

According to the findings, while 34 percent of men-owned informal businesses also earn below ₦10,000 daily, the proportion of women struggling with low profitability is significantly higher.

“The data shows that many women in the informal sector face structural and financial barriers that limit their earning potential,” the report noted.

“High business costs, limited access to credit, and inflation continue to erode profit margins.”

The report also found that 79 percent of informal business owners have experienced a rise in operating costs in the past year, largely due to inflation and unstable market conditions.

Despite these challenges, Moniepoint observed that several micro-businesses reported growth in revenue, but most of that income is being consumed by increased expenses—leaving little room for profit.

Nigeria’s informal economy remains one of the largest in Africa, employing millions and contributing significantly to national productivity. However, experts say the report underscores the urgent need for financial inclusion policies, business support programs, and access to affordable credit—especially for women entrepreneurs.

The Moniepoint Informal Economy Report 2025 aims to provide data-driven insights into the realities of small and micro-businesses operating outside Nigeria’s formal economy.