Moniepoint’s 2025 Informal Economy Report reveals what most Nigerians already live, small businesses are earning more but gaining less.

Sixty-five percent of Nigeria’s informal businesses across the country reported an increase in revenue over the past year, but only 47% saw a growth in profit. At the same time, 79% said the cost of doing business had increased, driven mainly by higher supplier prices, transport expenses, and the relentless depreciation of the naira.

This contradiction, of higher earnings but shrinking returns, captures the state of the Nigerian economy today.

Growth Without Profits

The country’s informal economy looks alive. The markets are filled with activities, goods are moving daily, artisans are finding work, and service providers are busy, but look deeper, they are all exhausted. 

The report stresses how traders, among others, watch their margins evaporate, unable to keep pace with inflation. “The cost of doing business has increased for 80% of informal businesses in that same period. A goal for us in this report was to establish context like this: helping key stakeholders see and understand the effects of every decision made on informal businesses, and giving them a voice where they’ve previously gone largely unheard,” said Tosin Eniolorunda, founder and group CEO, Moniepoint Inc.

Unsurprisingly, 44% of Nigeria’s informal businesses make less than ₦20,000 daily in revenue, and most make profit of only ₦10,000 to ₦20,000 a day. Business owners skip meals to restock, workers forgo pay to keep their jobs.

And for women-owned businesses, 41% of women earn below ₦10,000 daily, compared to 34% of men. It tells us that Nigeria’s informal economy, while inclusive in appearance, still aligns with the inequalities of the formal one.

Survival Mode Economics

We see an economy built on individuals, isolated, unstructured and overstretched, highly fragmented. Eighty-five percent of informal businesses are sole proprietorships, usually run by one person who handles everything from supply to sales to bookkeeping. Only 40% employ labour, and when they do, it’s typically one to three workers. It’s not that they don’t want to expand, it’s just that they can’t afford to.

Record keeping is also informal. Seventy-five percent of business owners say they track their income and expenses, but 38% disclose they do so mentally, without written or digital records. Most lack a clear view of their cash flow, making them invisible to lenders and policymakers.

That lack of structure limits access to credit, planning, and long-term growth.

Credit access is also deteriorating as 51% of informal business owners have never taken a loan and have no intention to do so, compared to 30% in the last report.

Fear of debt, high interest rates, and lack of collateral keep them shut out of the financial system. Among those who borrow, only 6% have ever secured loans above ₦1 million, with digital lenders and microfinance banks emerging as their most common sources.

The result is a self-sustaining cycle of informality; low records, low credit, low growth.

Inflation and the Cost of Resilience

Inflation has become the most punishing cost of doing business in Nigeria. It’s the invisible tax that eats into every sale, every restock and every saving. 

Dr Nurudeen Abubakar Zauro, technical adviser to the President on Economic and Financial Inclusion, explained:

“With the removal of fuel subsidies and devaluation of the Naira by the monetary authorities, inflation rate increased from 22.41% in May 2023 to a climax of 34.8% by December 2024 according to the data from the National Bureau of Statistics (NBS). In July 2025, inflation rate declined drastically to 21.88%.”

For informal businesses, that drop brings a little comfort. Inflation may have eased statistically, but prices are still suffocating. The report found that while 74% of business owners save money, 69% save less than ₦50,000 monthly, and 42% say their savings cannot last a month if their business income stops.

Even the much-celebrated digital transition has not fully arrived. While many businesses use transfers to restock, most still prefer to receive payments in cash, and only 16% say digital transactions account for more than half of their total revenue. The infrastructure may be modern, but consumer behaviour is still very traditional and survival rarely leaves room for experimentation.

Policy and Structural Limitations

For an economy that contributes around 65% of the nation’s GDP and supports over 80% of jobs, the informal sector is strangely underserved by policy. It sustains Nigeria, but without protection. 

Dr Chinyere Almona, director-general of the Lagos Chamber of Commerce and Industry, noted:

“The most pressing challenge, therefore, is misaligned policy frameworks that inadequately balance revenue generation with sectoral resilience, inadvertently driving many players further into informality. What is needed is not merely regulation, but coherent regulatory empathy, a framework that recognises informality as a springboard for innovation, employment, and resilience, rather than a nuisance to be managed.”

Despite recent policy initiatives such as the Nigeria Consumer Credit Corporation (CrediCorp), the Nigeria Tax Administration Act (NTAA), and small business registration campaigns, the report disclosed that formalisation is still out of reach for most small business owners, expensive, bureaucratic and unrewarding. 

“Although many informal businesses are unfamiliar with the process of registering their business, the assumption is that it is costly and complex. These assumptions make them unlikely to attempt the process,” said Zauro.

It’s not a lack of will, but a lack of trust. 

From Resilience to Reform

If there’s one thread that ties Moniepoint’s findings together, it’s that resilience is not enough. The informal sector needs access, not a round of applause.

In her commentary, Dr. Almona called for a shift in thinking. “Policies must pivot from punitive compliance models to incentive-driven, inclusion-focused strategies to effectively support growth and formalisation.”

That means simplifying registration, improving access to finance, expanding digital infrastructure, and providing targeted support for women entrepreneurs; all areas where private sector players like Moniepoint, SMEDAN, and IFC are already collaborating and this must continue in order to bridge the trust gap between the street and the system. 

Moniepoint’s report measures Nigeria’s informal economy, exposing its weaknesses and the fatigue of millions of businesses. Nigerians are counting coins under candlelight, calculating what can wait till tomorrow. Informal businesses are the backbone of the economy, but they’re carrying too much weight without support.

Until policymakers, financiers, and regulators begin to design for their reality, not their assumptions, Nigeria’s growth will stay uneven. The country’s entrepreneurs are doing their part. It’s time the system met them halfway.

Earlier this year, on June 17, 2025, the Nigerian Consumer Credit Corporation (CrediCorp) unveiled a policy that links every citizen’s National Identification Number (NIN) to their credit profile.

The idea is simple but powerful: create a centralized system that boosts transparency and allows lenders to make more informed decisions. On paper, it looks like a major win for financial inclusion.

But beneath the surface, there’s a deeper story, one that touches the lives of millions of Nigerians struggling at the margins.

According to a new report by Enhancing Financial Innovation and Access (EFInA), the “NIN-for-Credit” policy could unintentionally lock out the very people it hopes to empower, especially those in rural areas, low-income groups, and the vast informal sector.

The report, titled “NIN and Credit Reporting: Implications for the Poor and Vulnerable Segments in Nigeria,” sheds light on the stark identity gap in the country.

While 76% of wealthier Nigerians have a NIN, only 47% of the poorest adults have been able to obtain one. That’s not just a statistic; it’s a reality that could determine whether someone gets a loan to grow their small business or is left behind, yet again.

Let’s not forget: more than 40 million informal enterprises and 65% of all jobs exist in the informal sector, from traders and artisans to farmers and market women.

Many rely on traditional savings methods like esusu, adashe, cooperatives, and informal lending circles. These networks help keep their businesses afloat, feed their families, and pay school fees.

But under this new system, their financial behaviours may be invisible, simply because they don’t show up in formal databases.

EFInA’s report acknowledges the promise in the policy. If done right, linking NINs to credit could unlock opportunities for millions who’ve never had access to formal financial systems. It could offer them fairer credit scoring, more transparency, and better access to support systems.

But here’s the catch: if the system doesn’t recognize the realities of the informal economy, or support those without NINs, it could widen the financial divide, not bridge it.

The report calls for urgent action to Boost NIN enrollment in poor and underserved communities; avoid penalizing those with no credit history or NIN; Integrate informal credit behaviour into scoring systems, and investing in education and digital literacy so people understand their rights and how to navigate the new system

Because at the heart of it all, financial inclusion isn’t just about numbers or databases, it’s about people. People like Mama Kemi, who runs a thriving akara stand but can’t access a loan because her years of savings through a local cooperative don’t “count.” Or Yusuf the tailor, who keeps meticulous records in his jotter but doesn’t have a NIN.

If Nigeria truly wants to build an inclusive financial future, EFInA’s message is clear: we must leave no one behind. Not the poor. Not the unbanked. Not the unseen.

For years, accessing credit in Nigeria has been like navigating a maze—one filled with uncertainty, hidden obstacles, and a lack of accountability.

Many citizens, despite their honest intentions, have struggled to build credible financial histories, while lenders have hesitated to extend loans due to poor visibility into borrowers’ repayment behaviors.

That era is coming to an end. A sweeping reform, spearheaded by the Nigerian Consumer Credit Corporation (CREDICORP), is set to link every citizen’s credit score to their National Identification Number (NIN), ushering in a financial revolution unlike anything Nigeria has seen before.

The Turning Point: From Loan Evasion to Financial Discipline

Meet Daniel—a young entrepreneur in Lagos whose business dream was crushed due to his lack of credit history. He applied for multiple loans, but every institution turned him away, skeptical of lending to someone without financial records.

In contrast, Sarah—a digital designer—secured a micro-loan easily. Her past repayment discipline was recorded, and her NIN-linked credit score made her a trusted borrower.

Daniel’s struggle reflects the reality of millions of Nigerians—where credit access depends more on reputation than structured financial records. But the new system promises to change the game.

What This Reform Means for Every Nigerian

No More Hiding from Debt – Whether you borrow from a bank, fintech, or microfinance institution, your repayment record will now be traceable and impact future transactions.
Tangible Consequences for Defaulters – Loan evasion could affect passport renewals, driver’s licenses, and even housing approvals.
Reward for Financial Discipline – Nigerians who maintain responsible borrowing habits will benefit from better credit terms, lower interest rates, and increased financial opportunities.

Consumer Credit as a Tool for National Growth

This isn’t just about loan repayments—it’s about national prosperity. President Bola Tinubu’s Renewed Hope Agenda aligns with CREDICORP’s vision to:
Enhance living conditions through structured credit access.
Curb corruption, making financial integrity the standard.
Boost local industries by linking consumer credit to the purchase of Nigerian-made goods.

YouthCred: The Future of Financial Inclusion

For Nigeria’s youth, the landscape is shifting. The YouthCred program is set to empower National Youth Service Corps (NYSC) members and young Nigerians, granting them access to structured credit support. This marks the beginning of a generation equipped with financial literacy, responsibility, and access to economic tools.

The Road Ahead: A Call for Private Sector Participation

With Nigeria’s credit gap standing at ₦183 trillion, government efforts alone cannot bridge the divide. Financial institutions must step up, embracing the new credit-NIN framework to foster better lending practices and greater economic transparency.

As Uzoma Nwagba, MD of CREDICORP, who disclosed this reform in Abuja recently, puts it this way:
“We are creating a system where your access to economic opportunities is directly tied to your financial behaviour. The days of loan evasion are coming to an end, and financial discipline will be rewarded.”

Final Thoughts: A New Financial Era for Nigeria

This reform isn’t just about numbers and policies—it’s about reshaping the way Nigerians interact with credit.

From individual borrowers to corporate lenders, the future holds a more transparent, structured, and disciplined financial ecosystem.

As Nigeria steps boldly into this new era, one truth stands firm: your NIN is no longer just an ID—it’s the key to your financial destiny.

[Featured Image Credit]

Today, CREDICORP, in collaboration with Autochek, initiated a nationwide rollout of its second auto financing programme, delivering cars to a new wave of beneficiaries at a Handover Event in Abuja.

This marks a major step in expanding access to vehicle ownership. Owning a car is more than just a convenience—it’s a gateway to economic opportunity, independence, and higher quality of life.

Recall that CREDICORP has been providing highly discounted credit for brand-new locally-assembled vehicles of all types, through its Project S.C.A.L.E. (Securing Consumer Access for Local Enterprises) initiative. This will continue and remain highly discounted to support local industry.

However, the reality is that most Nigerians can only afford to purchase used cars. Recognizing this, CREDICORP has expanded its credit access to pre-owned cars through this partnership with Autochek, ensuring that more Nigerians can own cars with credit tailored to their financial realities.

The uptake of CREDICORP’s pre-owned vehicle financing initiative has been overwhelming since the offer opened on March 1, 2025.

So far, thousands of applications have been received from across Nigeria; the first 205 applicants successful through credit checks by the participating financial institutions are receiving their vehicles.

Today marks a significant milestone in CREDICORP’s commitment to expanding access to consumer credit for vehicle ownership. The wave of beneficiaries continues.

For many of the new car owners, this program is more than just a means of transportation—it’s a life-changing opportunity.

Amaka Okafor, a schoolteacher in Abuja, had relied on public transport for years, often struggling with long commute times and unreliable service.

“This car is more than just a vehicle to me—it’s freedom. I no longer have to worry about getting to school late or standing for hours waiting for a bus. I can now focus on my work and spend more time with my family,” she said, her voice filled with emotion.

Many other beneficiaries at the event echoed similar sentiments, emphasizing how access to credit is making mobility a reality for everyday Nigerians.

As part of President Bola Ahmed Tinubu’s Renewed Hope Agenda, the Nigerian Consumer Credit Corporation (CREDICORP) was established in April 2024 to drive economic inclusion and expand access to consumer credit for Nigerians.

CREDICORP achieves its mandate through three key pillars: first, infrastructure (by strengthening Nigeria’s consumer credit infrastructure, ensuring that every economically active citizen has a comprehensive credit score).

Second, capital (by providing wholesale funding and credit guarantees to financial institutions committed to expanding consumer credit access).

Lastly, by driving a cultural re-orientation—educating the public on responsible consumer credit and equipping institutions with more effective consumer credit underwriting strategies.

All this is to expand access to consumer credit to 50% of Nigeria’s working population by 2030.

With more than 10,000 vehicles set to be financed in the coming months, CREDICORP is not just enabling car ownership—it is unlocking better lives for Nigerians across the country.

How to apply

• Visit autochek or credicorp 

These loans can be used to finance a variety of needs, including paying school fees, rent, maintenance costs, medical bills, car purchase & repairs, asset purchase, and more.

The program is available to civil servants and private-sector employees whose salaries are paid through Ecobank.

New customers can also benefit upon presentation of employer undertaking to pay subsequent salaries through Ecobank.

Starting this January, the initiative provides flexible repayment options and a streamlined loan application process.

CrediCorp, a Development Finance Institution (DFI) established by the Federal Government, is focused on enhancing access to consumer credit for Nigeria’s workforce. Under the partnership, CrediCorp will provide funds to Ecobank, for on-lending to qualified customers.

The arrangement covers personal loans, as well as asset financing for items like solar systems, home appliances, phones, laptops etc. and vehicle conversions to compressed natural gas (CNG).

Adeola Ogunyemi, head of Consumer Banking at Ecobank Nigeria, expressed excitement about the collaboration, emphasizing that it would provide salary earners, both in the public and private sectors, with better access to financial products.

She said,

“This collaboration is an excellent opportunity to serve our customers, and we believe it will improve the quality of life for many Nigerians. Eligible customers can use the loans to purchase electronics, solar systems, or CNG vehicle conversions, as well as for other essential expenses like school fees, rent, upkeep, medical bills, and car maintenance. We encourage working-class Nigerians to open an account with Ecobank to benefit from this initiative.”

The loans come with affordable interest rates, a two-year term, and a repayment plan that ensures equal monthly installments, including principal and interest, do not change throughout the life of the facility, regardless of the economic situation of the country.

Ecobank Nigeria is part of the Ecobank Group, a leading pan-African banking organization.

The bank provides a full range of financial services to individuals, businesses, and institutions through its network of over 240 branches and 35,000 Xpress Point agencies across Nigeria.

This is in partnership with Fewchore Finance, one of its participating financial institutions (PFI), which aims to benefit 20,000 armed forces personnel in its first phase.

This fund – kicking off with the Armed Forces Remembrance Day – advances President Bola Ahmed Tinubu’s vision to extend consumer credit access to over 50% of working Nigerians by 2030 and demonstrates a specific commitment to improving the welfare of Nigerian soldiers who protect and serve the nation.

Via affordable consumer credit, members of the Armed Forces can now acquire life-enhancing household assets and meet immediate financial challenges – and at even better terms for locally manufactured goods.

The program aims to ease their financial burden, boost morale, and enhance the well-being of their families, most of whom they leave for the battlegrounds.

President Tinubu has long championed the welfare of uniformed personnel, and this initiative reflects his commitment to creating meaningful support systems.

“This program shows Mr. President’s commitment to supporting those who protect and serve our nation,” said Uzoma Nwagba, managing director/CEO of CREDICORP. “By making credit accessible to armed forces personnel, we not only honour their service but also advance the President’s goal of using consumer credit for much better lives.”

Sunkanmi Balogun, managing director/CEO of Fewchore Finance, added,

“We are proud to support the courageous men and women of the armed forces. At Fewchore Finance, we have a long-standing relationship with the Armes Forces and remain committed to creating solutions that address real needs.”

The initiative, starting with a first phase targeting 20,000 beneficiaries, will involve all branches of the armed forces. Phased implementation will ensure equitable access, coordinated with the respective Accounts and Budget departments of the forces. Launching this program on Armed Forces Remembrance Day carries deep symbolic meaning, showcasing the nation’s gratitude and dedication to the brave men and women who protect its peace and security.