The informal sector includes businesses under the categories - Fashion, Crop production, mobile money, food and catering, handwork, artisans, and agro-processing. According to the the sector contributes to 50% of household income in Nigeria, 90% of all jobs, 80% of employment in the agricultural sector and is a source of jobs for 90% of females. Nigerians from the informal sector were sampled from three locations in the northern part of the country - Abuja, Kaduna and Kano states, while the southern states sampled included Lagos, Oyo and Ogun states.
According to a , over 80% of all employment in Africa and 85% in Sub-Saharan Africa is informal. Poverty remains one of the most significant trends driving the expansion of informal enterprises and workers. According to the National Bureau of Statistics, (NBS) , and about 43.
7 million women are living in extreme poverty. The influence of the informal sector in Nigeria's employment figures was felt as the unemployment rate dropped to 4% in 2023. as reported by the NBS.
During the period, there was a concomitant 76% rise in employment. Four major sectors from the report emerged as the top industries with the highest contribution to employed labour in Nigeria and they include: Agriculture remains the backbone of Nigeria's economy, providing employment opportunities for over 36% of the labour force and supporting 70% of Nigerian households. Despite its significance, the agricultural sector is largely dominated by smallholder farmers,.