The Informal Economy Report 2024 has shown that only 1.3 per cent of Nigerian informal businesses reach over N2.5 million profit on a monthly basis.
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By Philip Shimnom Clement The Informal Economy Report 2024 has shown that only 1.3 per cent of Nigerian informal businesses reach over N2.5 million profit on a monthly basis.
The report, which was compiled by financial technology provider, Moniepoint, revealed that the network of unregistered businesses, which contributed over half of the country’s GDP with teeming street vendors, artisans and service providers, appeared prosperous based on revenue figures. The report, which was launched over the weekend in Abuja, also showed that businesses in the informal market contributed over half of Nigeria’s GDP as 72.3 per cent of informal businesses surpassed the N1m mark in monthly revenue.
“Put together, businesses in the informal market contribute over half of Nigeria’s GDP. This is evident in their revenues with the bulk of them (72.3 per cent) hitting monthly revenues of over N1,000,000 monthly.
But their actual profit deviates from these high figures. Individually, most of them make less than N250,000 monthly. On the higher end of the spectrum, only about 1.
3 per cent of businesses in Nigeria’s informal economy earn above N2.5m monthly,” it said. The report also revealed that a significant portion (68.
2 per cent) of their income went towards feeding and family expenses. This was followed by reinvestment in the busine.