In Nigeria where there is a high rate of unemployment, the informal sector plays a crucial role in ensuring that the people remain financially afloat.
In the informal sector, diversification can improve economic resilience by lowering reliance on a small number of industries.
The informal sector can withstand economic shocks more effectively when it includes a range of businesses, including manufacturing, services, agriculture, and technology.
Additionally, having numerous industries within the informal sector can boost innovation and skill development. Exposure to other industries fosters the interchange of ideas and best practices, resulting in the creation of new products, services, and business models.
This invention has the potential to increase the sector’s productivity and competitiveness. According to the Informal Economy report by Moniepoint, businesses that provide basic amenities thrive the most within Nigeria’s informal sector.
“Retail and General Trade was the leading category in Nigeria’s informal economy, containing 24% of all businesses. In addition to Food & Drinks, Fashion and Beauty, and Agriculture, this category accounts for 58.6% of all businesses in Nigeria’s informal market,” the report reads.
“By transaction value in Naira, Retail & General trade, alongside Food & Drinks, accounted for over half of Nigeria’s informal economy at 53.6%. Businesses you’d typically find in this category include neighborhood shops, restaurants, supermarkets, and others that sell daily necessities,” it adds.
With that said, here are the industries within Nigeria’s informal economy that contribute the most to the sector, according to the Informal Economy report.
Top 10 most important industries in Nigeria’s informal economy
Rank
Industry
% of informal market
1.
Retail and General
38.4%
2.
Food and Drinks
15.2%
3.
Oil and Gas
9.6%
4.
IT/Electronics
6.9%
5.
Construction
5.6%
6.
Agriculture
4.6%
7.
Beauty and Personal
3.9%
8.
Fashion
3.3%
9.
Health care
2.2%
10.
Education
1.6%
PS: Other sectors not listed here combine to generate 8.9% of Nigeria’s informal economy.
Source link : https://africa.businessinsider.com/local/markets/top-10-most-important-industries-in-nigerias-informal-economy/z232ex0
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Publish date : 2024-07-26 15:00:29
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