Vice President Kashim Shettima has reaffirmed the pivotal role of micro, small, and medium-sized enterprises (MSMEs) in Nigeria’s economy, describing them as the “heartbeat” of the nation. Speaking at the launch of the 2025 Informal Economy Report in Abuja, Shettima highlighted that MSMEs constitute over 96% of Nigerian businesses, contribute about 50% to the nation’s GDP, and employ more than 84% of the workforce.

The report, produced in partnership with Moniepoint Microfinance Bank, the Federal Ministry of Industry, Trade and Investment, and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), reveals that 65% of informal sector businesses reported revenue growth in the past year. However, rising operational costs meant only 47% saw higher profits, and 38% earned less than N10,000 daily. Additionally, 42% of operators lack sufficient savings to survive a month without income, underscoring the sector’s vulnerability.

The Tinubu-Kashim administration remains committed to supporting MSMEs through initiatives such as the N75 billion MSME intervention fund and the establishment of MSME Clinics across the country. These efforts aim to enhance access to finance, improve business structures, and promote digital literacy among entrepreneurs. The government continues to prioritize the informal sector as a key driver of inclusive economic growth and resilience.