Moniepoint: 58% of Nigeria’s informal workforce below 34 years

A recent report by Moniepoint has shed light on the critical role of Nigeria's informal economy, which constitutes 89.4 per cent of the estimated 40 million Micro, Small, and Medium Enterprises in the country. Babatunde Olofin, the Managing Director of Moniepoint Microfinance Bank, discussed the report on a CNBC Africa interview, emphasizing that unemployment is a significant driver prompting Nigerians to delve into informal businesses. The report further revealed that 58 per cent of these businesses are managed by individuals below the age of 34, indicating a potential for socio-economic transformation. As the interview unfolded, Olofin delved into the intricacies of Nigeria's informal economy, emphasizing its contribution to employment generation, income provision, and poverty alleviation. He highlighted the sector's adaptability to changing market conditions and underscored its significant contribution to the nation's GDP. Olofin also touched on the evolution of digital payments in Nigeria and Moniepoint's role in expanding financial inclusion through its widespread agent network. The discussion further delved into the future of the informal economy, particularly in terms of payment infrastructure, AI adoption, and connectivity. Olofin highlighted the need for cohesive efforts among infrastructure providers to enhance payment systems in the country. The conversation also touched on government policies, specifically addressing tax issues and the importance of educating small business owners on their tax obligations. Olofin emphasized the need for clear policies to curb multiple taxation and unauthorized tax collection practices. In conclusion, Olofin stressed the significance of government support and continued education for small businesses to thrive in Nigeria's informal economy.