Nigerian Government Applauds Moniepoint’s Contributions To Growth Of The Informal Economy

Nigeria’s Vice President, Kashim Shettima, has reiterated the government’s unwavering commitment to increasing economic and financial inclusion in accordance with President Bola Tinubu’s Renewed Hope Agenda.
He stated that financial inclusion is a critical component, and that the government is working hard to ensure that the most vulnerable members of society have safety nets, as evidenced by the ASO accord signed earlier this year.

He made these remarks over the weekend in Abuja while speaking as the keynote speaker at the launch of the 2024 Nigeria Informal Economy Report, powered by Moniepoint in collaboration with the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and the Federal Ministry of Industry, Trade, and Investment.

The Nigeria’s Informal Economy Report provides new perspectives for individuals and organisations interested in understanding the dynamics of Nigeria’s informal economy and creating a more inclusive and sustainable economic landscape. The report contains several key insights, including:

Over 57.7% of Nigeria’s business owners are under the age of 34, making them a critical driving force in the informal economy.

In Nigeria’s informal economy, most businesses earn less than ₦250,000 per month, with only 1.3% earning more than N2.5 million. Retail and General Trade is the leading industry in the informal economy, accounting for 24% of all informal businesses.

Sen Shettima, represented by Dr. Nurudeen Abubakar Zauro, Technical Adviser to the President on Economic and Financial Inclusion, recognised and appreciated the role of informal players, particularly Moniepoint.

“We can all recall that during the Covid-19 lockdown and recent currency changes, there were many challenges, and we saw agencies like this band together to save the country at that time.

“This is due to the flexible initiatives they introduced into the space, particularly last-mile delivery, which provided a platform for people to successfully transact. SMEDAN’s innovative streak has also been impressive, he said.

Babatunde Olofin, Managing Director of Moniepoint Microfinance Bank, praised informal business operators for their high level of flexibility and innovation in adapting quickly to changing market conditions.

He emphasised the economic significance of the informal economy, stating that it contributes significantly to Nigeria’s GDP and can be effectively mobilised to unleash Nigeria’s full economic potential and provide much-needed assistance to our society’s most vulnerable households.

Dr. Doris Uzoka-Anite, Minister of Industry, Trade and Investment, who officially launched the report, reaffirmed the Federal Government’s commitment to assisting small business operators in the informal sector of the economy.

She emphasised that the informal sector, which is often overlooked, would now benefit from government interventions and incentives.

She stated, “We are very grateful to Moniepoint for conducting this report. It provides the foundation for targeted intervention as part of the government’s approach to supporting the informal economy.

This segment is important to the Nigerian economy; we can now bring them up to par with the incentives provided by the government to the broader economy.

Also delivering a goodwill message, the Chairman of the House Committee on Small and Medium Enterprises (SMEs), Hon. Mansur Manu Soro, stated that the House was taking deliberate steps to prioritise women working in the informal sector and eliminate gender disparities in earnings.

He expressed the National Assembly’s commitment to fully reviewing and internalising the report, while praising Moniepoint for its positive impact in promoting financial inclusion.

“I would like to congratulate Moniepoint on achieving such high national penetration in the banking industry in such a short period of time. The Moniepoint story demonstrates how technology can propel a business to unprecedented heights in a short period of time. Reports like this one, which we will be releasing today, continue to be an important planning tool for both the government and the private sector, and we in the House of Representatives will incorporate it into legislation.”

Tosin Eniolorunda, Chief Executive Officer of Moniepoint Inc., explained the report’s rationale in his foreword: “In just a few years, over 2 million businesses, many in the informal economy, have chosen Moniepoint as their essential growth partner.

This report was inspired by our commitment to this sector. By quantifying the informal economy’s impacts and nuances, we can better shape policies and programmes that empower and support the entrepreneurs who drive it forward. Their success is inextricably linked to Nigeria’s ongoing expansion and development.”

In a keynote speech, Charles Odii, Director General/CEO SMEDAN, stated that small businesses are the engine of the Nigerian economy, with the majority of Nigeria’s approximately 40 million small businesses operating in the informal sector.

He stated that these businesses, which are born out of necessity and entrepreneurial zeal, exemplify the well-known Nigerian ‘hustling,’ and that the agency is working to formalise these businesses and bring them into the formal sector in order to increase access to critical resources such as finance.

“Ensuring their survival and catalysing their growth is critical for poverty elimination, rural industrialization, and livelihood enhancement, all of which are SMEDAN’s three core mandates.

Their formalisation will help to develop brand value and financial history, which demonstrates creditworthiness and attracts investment.”

Furthermore, Odii articulated SMEDAN’s agenda for accelerating small business growth and prosperity, which is encapsulated in the acronym ‘GROW’: Guidance, Resources, Opportunities, and Workforce Support.

According to him, the agency focuses on seven priority sectors: agriculture (EAT Nigeria), manufacturing (PRODUCE Nigeria), tourism (VISIT Nigeria), fashion (WEAR Nigeria), creative industries (WATCH AND LISTEN Nigeria), education (TEACH Nigeria), and services.

This agenda focuses on increasing local production capacity, improving market access both domestically and internationally, and creating an enabling environment for over 40 million small businesses, which collectively employ more than 60 million people.

The event included a panel session moderated by Didi Uwemakpan, Vice President, Corporate Affairs, Moniepoint Inc, on the theme “Building an inclusive and sustainable informal economy for Nigeria: Hopes and Impediments.” The panellists, who included Dr. Tope Fasua, Special Adviser to the President on Economic Affairs; Dr. Paul Oluikpe, Head of Financial Inclusion Delivery Unit, Central Bank of Nigeria; DG, SMEDAN; Inimfon Etuk, Founder, She Forum Africa; and MD, Moniepoint Microfinance Bank, were unanimous in their call for continued collaboration and concerted efforts to support and elevate Nigeria’s vibrant informal economy towards sustainable growth and development.

Among the dignitaries who attended the event were Engr Jennifer Adighije, Senior Special Assistant to the President on Entrepreneurship in Innovation and the Digital Economy; Barr. Dele Kelvin Oye, National President, Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA); Mr. Chudi Ugwuada-Ezirigwe, MD/CEO, Abuja Enterprise Agency; and Hussaini Ishaq Magaji, SAN, Registrar General/CEO, Corporate Affairs Commission.