Informal work means jobs that are not registered with the government. These jobs do not have official contracts or benefits. In Nigeria, most people work in informal jobs. This includes women who sell goods at markets, cook food for others, or farm small pieces of land. We will talk about female entrepreneurship in Nigeria.
As an old saying goes, “A woman who feeds herself feeds the nation.” This wisdom rings true when we look at how women drive Nigeria’s economy through their hard work in small businesses.
How Many Nigerians Work in Informal Jobs?
As of early 2026, about 92.7% to 93% of Nigerian workers have informal jobs. This means that out of every 100 workers, about 93 people work in the informal sector. The informal sector is the backbone of employment in Nigeria.
Most women in Nigeria work in informal jobs. In fact, 96 out of every 100 employed women work in the informal sector. These jobs are often unsafe and pay very little money.
How Many Women Own Businesses in Nigeria?
Women now lead about 72% of micro-enterprises in Nigeria. Micro-enterprises are very small businesses. This is a big change from before. Women make up 35% to 70% of business owners in the informal economy.
Many women run businesses in petty trading, agriculture, and service work. Petty trading means selling small items like food, clothes, or household goods. About 40% of women work in petty trading. Another 7.3% work in agriculture.
A 2025 research study by Moniepoint showed something important. The study found that women are taking charge of more businesses than ever before. But these businesses face many problems that stop them from growing.
How Much Money Do Women-Owned Businesses Make?
Many women-owned businesses do not make much money. Approximately 41% of women-owned informal businesses generate less than 10,000 Naira per day in profit. In US dollars, this is about $12 per day. This is very little money to support a family.
Men-owned businesses make slightly more money. Only 34% of men-owned businesses earn less than this amount. This shows that women face harder challenges in making their businesses successful.
Why Do Women-Owned Businesses Earn Less Money?
There are several reasons why women-owned businesses struggle to make good profits. These reasons create a cycle that is hard to break.
Limited Access to Money
Women entrepreneurs face a $42 billion credit gap. This means women need $42 billion in loans to grow their businesses, but they cannot get this money from banks. Women often use their own savings to start businesses. This limits how big their businesses can grow.
About 41% of women in Nigeria are financially excluded. This means they cannot use banks or get loans easily. Without money from banks, women cannot buy more goods to sell or expand their businesses.
Lack of Land Ownership
Less than 10% of women own land in Nigeria. Land is important for farming and for having a place to run a business. When women do not own land, they must rent spaces or work from small areas. This makes it harder to grow their businesses.
Unpaid Care Work
Women spend many hours each day taking care of children, cooking, and cleaning. This is called unpaid care work. When women spend time on these tasks, they have less time to focus on their businesses. This stops their businesses from growing bigger.
Rising Business Costs
In 2026, 79% of small business owners say that costs are extremely high. Fuel prices have gone up. The cost of goods has increased because of inflation. Inflation means that money does not buy as much as it used to. These high costs make it harder for women to make profit from their businesses.
How Does Digital Payment Affect Women’s Businesses?
Digital payment tools are new ways to send and receive money using phones or computers. These tools can help businesses grow faster. But only one in four informal traders uses digital payment tools. This means 75% of informal traders still use only cash.
Research shows that when women adopt digital payments, their businesses can reach more customers. Digital tools also make it easier to keep track of money. However, many women do not know how to use these tools or do not have smartphones.
For more information about how technology affects women in business, you can explore resources at genderpedia.ng/shop.
How Long Do Women-Owned Businesses Survive?
Sadly, most women-owned informal businesses do not last long. Only about 25% of women-owned informal businesses survive beyond 5 years. This means that only 1 out of every 4 businesses makes it past the five-year mark.
Businesses fail for many reasons. Some women cannot get enough customers. Others cannot compete with bigger businesses. Many women do not have enough money to keep their businesses running when times are hard.
I once met a woman named Amina who sold vegetables at a local market in Lagos. She worked hard every day from sunrise to sunset. But when her child got sick, she had to close her business for three weeks. She lost all her customers to other sellers. By the time she returned, she could not rebuild her business. This is the reality for many women entrepreneurs in Nigeria.
How Much Do Women-Owned Businesses Contribute to Nigeria’s Economy?
Even though women face many challenges, their businesses are very important to Nigeria. Women-owned businesses contribute about 37% of Nigeria’s Gross Domestic Product (GDP). GDP measures how much money a country makes from all its businesses and work.
This means that more than one-third of Nigeria’s economic activity comes from businesses run by women. If women had better support and resources, they could contribute even more to the economy.
What Sectors Do Women Work In Most?
Female entrepreneurship expresses itself in different ways in Nigeria. The main sectors where women concentrate their efforts are:
Petty trading is the biggest sector for women. This includes selling food items, clothes, beauty products, and household goods at markets or from small shops. Agriculture comes next, where women farm crops or raise animals. Retail and service work make up other important sectors where women operate businesses.
What is the Government Doing to Help?
The Nigerian government and financial institutions are showing more interest in helping informal businesses. They want to help these businesses transition into the formal economy. The formal economy includes businesses that are registered and follow government rules.
In urban areas especially, there are new programs to help small business owners. These programs teach business skills and help women access loans. However, these programs do not reach all women yet. Many women in rural areas still do not get help.
How Does Financial Exclusion Affect Women Entrepreneurs?
Financial exclusion means not being able to use banks, get loans, or access financial services. When 41% of women are financially excluded, it creates serious problems for their businesses.
Without bank accounts, women cannot save money safely. If you remove access to loans, they cannot buy inventory in bulk to get better prices. Without credit cards or business loans, they cannot invest in better equipment or larger spaces.
Financial exclusion keeps women trapped in small businesses that barely make enough money to survive. Breaking this cycle requires banks and financial institutions to create services that work for women.
Gender researchers studying this issue can find detailed analysis and data at genderpedia.ng/shop.
How Does Inflation Impact Women-Owned Businesses?
Inflation is when prices go up over time. In 2026, Nigeria is experiencing high inflation. This affects women-owned businesses in serious ways.
When the cost of goods increases, women must pay more to buy items to sell. But customers may not be able to pay higher prices. This squeezes profit margins. Many women cannot raise their prices because their customers are also struggling with inflation.
Fuel price increases make transportation more expensive. Women who travel to buy goods or sell products must pay more for transport. This reduces their profit even more.
What Can Help Women Entrepreneurs Succeed?
Several things could help women-owned businesses survive and grow:
Better access to loans and credit would allow women to invest in their businesses. If banks created special programs for women entrepreneurs, more businesses could grow beyond the survival stage.
Land ownership rights for women would give them stable places to run businesses. When women own land, they can use it as collateral to get loans. They can also build permanent structures for their businesses.
Reducing unpaid care work through childcare services would free up women’s time. If women had safe places for their children during work hours, they could focus more on growing their businesses.
Training programs on digital tools would help women use technology to reach more customers. When women learn to use digital payments and online marketing, their businesses can grow faster.
Government support through favorable policies could make it easier for women to formalize their businesses. Lower registration fees and simpler processes would encourage more women to register their businesses officially.
Why Does This Matter for Gender Research?
Understanding stats on informal work and female entrepreneurship is crucial for gender researchers. These numbers show the real challenges that women face in economic participation.
When researchers know that 96 out of 100 employed women work in vulnerable, informal jobs, they can design better interventions. When they understand that 41% of women-owned businesses earn less than $12 daily, they can advocate for better policies.
The $42 billion credit gap is not just a number. It represents millions of women who have good business ideas but cannot access the money to make those ideas successful. Each statistic tells a story of struggle, resilience, and untapped potential.
For gender researchers looking to understand these dynamics more deeply, comprehensive resources are available at genderpedia.ng/shop.
The Path Forward
Nigeria’s informal sector will continue to be important for many years. Women will continue to lead most micro-enterprises. The question is whether these women will get the support they need to thrive.
Addressing the challenges that women entrepreneurs face requires coordinated effort. Banks must create accessible financial products. The government must simplify business registration. Communities must value women’s economic contributions. Families must share unpaid care work more equally.
When women succeed in business, everyone benefits. Children get better education. Families have more food and security. Communities grow stronger. The entire nation prospers.
The old saying reminds us that “A woman who feeds herself feeds the nation.” Nigeria’s future depends on empowering the 72% of micro-enterprises led by women. Their success is Nigeria’s success.
Conclusion
The statistics on informal work and female entrepreneurship reveal both challenges and opportunities. While 92.7% of Nigerians work in the informal sector and 41% of women-owned businesses earn less than $12 daily, women continue to drive 37% of Nigeria’s GDP. Understanding these numbers helps researchers, policymakers, and advocates create better solutions. For more research, data, and resources on gender and economic empowerment, visit genderpedia.ng/shop to access comprehensive materials that support evidence-based interventions.
