Informal sector, heartbeat of Nigeria’s economy – VP Shettima

…Informal concern outgo rises by 80% – Report
…SMEDAN begins escaped registration for 250,000 informal businesses

By Gabriel Ewepu, Abuja

Vice President Kashim Shettima has reaffirmed the pivotal relation of Nigeria’s informal sector, describing it arsenic the “heartbeat of the economy.”

He made the connection successful Abuja during the presumption of the Informal Economy Report 2025, powered by Moniepoint Microfinance Bank successful concern with the Federal Ministry of Industry, Trade and Investment and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

Represented by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, the Vice President said the Tinubu-led medication places precocious precedence connected the informal sector, which has remained cardinal to Nigeria’s economical resilience.

“The informal system lies astatine the bosom of Nigeria’s communicative of resilience, creativity, and endeavor — from marketplace traders to artisans, work providers, and young integer entrepreneurs. Millions of Nigerians powerfulness commerce regular successful ways that are unseen yet indispensable to our economy,” Shettima said.

He commended Moniepoint for its decade-long publication to fiscal inclusion, supporting millions of informal businesses crossed Africa. The study revealed that women predominate the informal assemblage and stay the astir resilient operators, portion younker information continues to turn rapidly, requiring targeted support.

According to the report, informal concern costs person risen by 80% implicit the past twelvemonth owed to ostentation and operational challenges. However, the assemblage continues to make important employment and thrust productivity.

Shettima highlighted that Nigeria is location to implicit 39 cardinal Micro, Small and Medium Enterprises (MSMEs), accounting for astir 96% of each businesses, contributing 50% to GDP, and employing implicit 84% of the workforce.

“This study gives an important model into the challenges and opportunities wrong the sector. It provides a stronger instauration for inclusive, evidence-based policymaking,” helium said.

The Managing Director of Moniepoint Microfinance Bank, Babatunde Olofin, described the study arsenic “a reflector of Nigeria’s economical reality,” adding that it volition usher policymakers and fiscal stakeholders toward greater inclusion.

In his goodwill message, the Special Adviser to the President connected Job Creation and MSMEs, Temitola Adekunle-Johnson, praised Moniepoint for empowering millions of tiny businesses done affordable financing.

Also speaking, the Director-General of SMEDAN, Charles Odii, disclosed that tiny concern ownership has grown to 39.6 cardinal nationwide. He added that businesses earning beneath ₦15 cardinal annually are present exempted from institution income tax.

Odii announced that SMEDAN, successful collaboration with the Corporate Affairs Commission (CAC), has begun escaped registration for 250,000 informal businesses to promote formalization and entree to authorities support.

“We are formalizing tiny businesses astatine nary cost. The extremity is to springiness them identity, entree to finance, and inclusion successful the ceremonial economy,” helium said.

The lawsuit ended with renewed calls for collaboration among government, fiscal institutions, and entrepreneurs to fortify Nigeria’s informal system — the existent motor of maturation and nationalist stability.

The station Informal sector, heartbeat of Nigeria’s system – VP Shettima appeared archetypal connected Vanguard News.