Nigerian Women Dominate Informal Businesses, Yet Face Financial Disparity
The bustling Mile 12 market in Lagos, Nigeria, provides a vivid snapshot of the informal economy, where countless women entrepreneurs work tirelessly. These women, like the early-morning tomato seller, are vital to the nation’s economic engine. However, despite their significant presence, they often struggle with unstable operational costs and limited access to essential financial services, impacting their earnings.
The Earnings Gap in Nigeria’s Informal Sector
Data from the 2025 Informal Economy Report by Moniepoint paints a clear picture of this disparity. While women own a substantial 35% of businesses within Nigeria’s informal sector, they face a pronounced earnings gap. The report reveals that 41% of women-owned businesses generate daily profits below ₦10,000, significantly higher than the 34% of male-owned businesses in the same bracket. The contrast is even more striking at the higher end of the profit scale. Only 10% of women-owned businesses earn over ₦50,000 daily, compared to 16% of male-owned businesses. This reality translates to narrow profit margins for many female traders, limiting their ability to reinvest in their businesses or pursue expansion opportunities. This issue highlights the urgent need for targeted financial inclusion initiatives and support systems designed to empower women entrepreneurs in Nigeria.
Keywords
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