Moniepoint, a Nigerian Fintech company that provides an all-in-one payments, banking, and operations platform for businesses and their customers, in its latest report titled “The Informal Economy Report 2024”, highlighted key insights on Nigeria’s informal Economy. Moniepoint reveals that the informal economy plays a crucial role in Nigeria’s daily life, yet much of it remains underexplored or misunderstood. To understand the current fabric of the Nigerian informal economy, the fintech delved into the sector by speaking with hundreds of business owners and analyzing data from over 2 million businesses across Nigeria.
One notable key insight on the report is that most businesses in Nigeria’s informal economy still prefer cash payment. The consensus that cash is king due to its ease of use in low-trust environments, is true for small businesses in the country, as the data reveals that despite the rise of digital payments, 1 in 2 businesses in Nigeria said they prefer to receive cash over digital payments. The preference for cash was connected to safety and ease of doing business.
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For businesses that needed to use cash to pay for the goods and services they sold, Cash was their preferred means of receiving paym.