The Informal Economy Report 2024 has revealed how businesses in the informal sector contribute over half to Nigeria’s Gross Domestic Product (GDP) with the bulk of them (72.3 per cent) in tune of over N1,000,000 monthly. This was revealed at weekend in Abuja during the launch of Moniepoint Informal Economy Report 2024 in a collaboration with Small and Medium Enterprises Development Agency (SMEDAN) .
The informal businesses includes street vendors, artisans, and service providers. According to the report, individually, most of them make less than N250,000 monthly and on the higher end of the spectrum, only about 1.3 per cent of the businesses in Nigeria’s informal economy earn above N2.
5 million monthly. According to the report, Retail and General Trade is the leading industry within the informal economy, making up 24 per cent of all informal businesses. It said this category, along with Food and Drinks, Fashion and Beauty, and Agriculture, collectively accounts for over half (58.
6 per cent) of all informal businesses in Nigeria. “While the bulk of informal businesses (72.3 per cent) generate over one million naira in monthly revenue, individual profits paint a different picture.
“Inspite of this, a staggering 90 per cent contribute to the national GDP, reinforcing their significance to the Nigerian economy “, it stated. The report also revealed that a significant portion (68.2 per cent) of their income goes towards feeding and family expenses.
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