42% Of Informal Workers Lack 1 Month Savings – Report

A new study by Moniepoint Microfinance Bank has revealed that 42 per cent of informal sector operators do not have enough savings to survive beyond a month without income.
The finding, in a statement in Lagos by the bank, highlighted the financial vulnerability of millions of small business owners and self-employed Nigerians who make up a large part of the nation’s workforce.
The yet-to-be-released report, supported by the Federal Ministry of Industry, Trade and Investment and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), forms part of the second edition of the nation’s Informal Economy Report.
The study will be officially launched on Friday, October 17, at the Abuja Continental Hotel, where industry leaders, government officials, regulators, lawmakers, academics, and civil society representatives are expected to gather to discuss its findings.
Mr Babatunde Olofin, Managing Director of Moniepoint Microfinance Bank, said the report aims to offer evidence-based insights that could guide policymakers, regulators, and financial institutions in developing practical interventions for the informal economy.
“The Informal Economy Report is a robust and important study that examines the informal market more closely and curates fresh insights into its realities.
“We believe its key outputs will serve ecosystem players and government well in policy direction and execution,” Olofin said.
Olofin described the informal economy as the backbone of Nigeria’s livelihood, accounting for over 80 per cent of employment and contributing significantly to the country’s Gross Domestic Product (GDP).
He explained that for millions of Nigerians excluded from formal employment, informal businesses serve as a lifeline against poverty, providing daily income and sustenance despite structural challenges.
According to him, Moniepoint’s ongoing research into the sector seeks to identify practical ways to help informal business owners access credit, improve financial literacy, and transition gradually into the formal economy.
The 2025 edition of the report will also explore key policy areas such as digital inclusion, micro-savings mechanisms, and affordable credit access for informal workers, crucial levers for achieving financial resilience.
Olofin said the event would bring together stakeholders from across Nigeria’s business and development community to exchange ideas on how to create a more inclusive and sustainable economic framework.
“Our ultimate goal is to ensure that no small business or informal worker is left behind in Nigeria’s growth story.
“With the right data and collaboration, we can design better systems that truly empower them,” he added.
The event will feature keynote addresses, panel discussions, and presentations of the study’s findings, with discussions focused on strategies to improve the welfare and productivity of informal sector participants.
The 2025 Informal Economy Report follows the success of its inaugural edition, which was widely commended by stakeholders for providing credible data, actionable insights, and practical policy recommendations to strengthen the informal sector.