Challenges and Resilience in Nigeria's Informal Economy

Tade Wasiu is a fashion designer known for his work with fine fabrics, specializing in dashikis, Kaftans, Babanrigas, and female Buba designs. His journey began in Ilogbo, a ghetto in Lagos, before moving to Surulere.

Despite spending over four years in the business, he struggles with government support and faces challenges typical of small businesses, such as funding and high electricity costs. The informal economy in Nigeria, which includes many artisans like Wasiu, is significant, with over 60 percent of the population under 30 years old.

A Moniepoint Informal Economy Report 2025 indicates that 38 percent of informal businesses earn less than N10,000 daily, and 44 percent generate less than N20,000. Additionally, 42 percent of businesses have savings that would last less than one month without income.

Despite these challenges, 74 percent of informal business operators save regularly, primarily for business expansion and emergencies.