Rising costs leave 38% of Nigeria’s SMEs earning under ₦10,000 profit daily

38% of Nigeria’s SMEs make less than ₦10,000 ($6.78) in daily profit, according to Moniepoint’s 2025 Informal Economy Report, suggesting that small businesses—critical engine of the country’s economy—remain stuck in survival mode rather than scaling toward growth.

38% of Nigeria’s SMEs make less than ₦10,000 ($6.78) in daily profit, according to Moniepoint’s 2025 Informal Economy Report, suggesting that small businesses—critical engine of the country’s economy—remain stuck in survival mode rather than scaling toward growth.

The study, which leveraged Moniepoint’s data of 5 million businesses and physically surveyed small business owners across the country, found that most informal businesses generate daily revenues between ₦20,000 ($13.56) and ₦50,000 ($33.89). 38% earn profits below ₦10,000 ($6.78) daily, while 70% make less than ₦50,000($33.89).

Median profit ranges from ₦10,000 ($6.78) to ₦20,000 ($13.56).

Micro, Small, and Medium-sized Enterprises (MSMEs) form the backbone of Nigeria’s economy, contributing around 65% of GDP and providing more than 80% of all jobs. But rising operational costs continue to make them unprofitable.

Moniepoint’s report revealed that 44% of businesses in the informal economy earn below ₦20,000 ($13.56) daily.

Women-owned Nigerian SMEs fare worse. 41% of women entrepreneurs earn below ₦10,000 ($6.78) daily, compared to 34% of men. On the other hand, 16% of men-owned businesses earn above ₦50,000 ($33.89) compared to 10% of women-owned businesses.

While 65% of informal businesses reported revenue growth over the past year, only 47% saw an increase in profit. Nearly eight in ten (79%) said their cost of doing business had gone up, driven by higher supplier prices, transport costs, and a weaker naira.

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