Vice President Kashim Shettima has reaffirmed that Nigeria’s informal sector remains the heartbeat of the nation’s economy, stressing that no meaningful economic growth can be achieved without strengthening this vital segment.
He made the statement while addressing participants at the 4th African Union MSME Forum held in Abuja, where he highlighted the importance of integrating informal businesses into the country’s formal trade system.
According to Shettima, the informal sector accounts for about 84 percent of Nigeria’s total workforce and contributes nearly 48 percent to the nation’s Gross Domestic Product (GDP). He noted that the sector’s resilience continues to sustain millions of households and small businesses despite economic challenges. “Our informal economy is not a weakness; it is a source of strength that showcases the creativity and perseverance of the Nigerian people,” he said.
The Vice President stressed that President Bola Tinubu’s administration remains committed to creating an enabling environment for small and medium enterprises to thrive. He stated that efforts are ongoing to provide easier access to credit facilities, reduce multiple taxation, and improve infrastructure to support local businesses. “We must ensure our informal workers and traders are integrated into the broader economic framework, where they can access opportunities and protection,” he added.
Shettima further urged policymakers across Africa to prioritise the informal sector as a driver of sustainable development and regional trade. He said Nigeria’s collaboration with the African Continental Free Trade Area (AfCFTA) would open new opportunities for micro and small-scale entrepreneurs, promoting cross-border commerce and reducing poverty across the continent.
He also commended Nigerian entrepreneurs for their contribution to national growth, noting that their hard work and innovation continue to shape the economy. “Our traders, artisans, and small business owners are the real heroes of economic stability. Their productivity fuels the nation’s progress,” Shettima remarked.
The Vice President concluded by assuring that the Federal Government would continue to support policies that protect small businesses and boost job creation. He called on development partners and financial institutions to join in empowering the informal sector for inclusive economic growth.
