FG lauds Moniepoint’s contributions to growth of informal economy

By Chinwendu Obienyi

Vice President, Mr Kashim Shettima, applauded Moniepoint, a digital financial services platform, for its contributions to the growth of the informal sector, saying they were consistent with the administration’s resolve to enhance economic growth and financial inclusion.

Speaking at the launch of the 2024 Nigeria Informal Economy Report, powered by Moniepoint in collaboration with the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and the Federal Ministry of Industry, Trade, and Investment, Shettima, who was represented by the Technical Adviser to the President on Economic and Financial Inclusion, Dr. Nurudeen Abubakar Zauro, said: “During the COVID-19 lockdown and recent currency fluctuations, we faced numerous challenges. Agencies like Moniepoint came together with flexible initiatives, such as last-mile delivery, enabling people to successfully transact. SMEDAN’s innovative efforts have also been commendable,” Shettima stated.

Babatunde Olofin, Managing Director of Moniepoint Microfinance Bank, highlighted the resilience and innovation of informal business operators in adapting to changing market conditions. He emphasized the significant contribution of the informal economy to Nigeria’s GDP and its potential to unlock the nation’s full economic capabilities, providing essential support to the most vulnerable households.

Dr. Doris Uzoka-Anite, Minister of Industry, Trade, and Investment, who officially launched the report, reiterated the Federal Government’s commitment to supporting small business operators in the informal sector. She emphasized that this often-overlooked sector would begin to receive targeted government interventions and incentives. “We are truly grateful to Moniepoint for conducting this report. It provides a foundation for us to offer targeted interventions, as part of the government’s approach to supporting the informal economy. This segment plays a crucial role in the Nigerian economy, and we can now extend incentives provided to the broader economy to them,” Uzoka-Anite remarked.

Mansur Manu Soro, Chairman of the House Committee on Small and Medium Enterprises (SMEs), highlighted the House’s deliberate steps to prioritize women in the informal sector and address gender disparities in earnings. He assured that the National Assembly would give the report thorough attention, review it, and integrate its findings into legislative processes. “I congratulate Moniepoint for achieving national penetration in the banking industry within a short period. The story of Moniepoint demonstrates how technology can propel a business to unprecedented heights quickly. Reports like this are critical tools for government and private sector planning, and we in the House of Reps will be internalizing it legislatively,” Soro stated.

The launch of the 2024 Nigeria Informal Economy Report represents a significant milestone in recognizing and supporting the informal sector, which plays a vital role in the nation’s economy but often operates below the radar. Moniepoint’s efforts in conducting this report and promoting financial inclusion have been acknowledged and appreciated at the highest government levels, paving the way for targeted interventions that will help unlock the full potential of Nigeria’s informal economy.

The report underscores the importance of the informal sector in driving economic growth and stability, providing detailed analysis of the sector’s contributions and challenges, and offering actionable insights for policymakers. The government’s commitment to integrating these insights into policy and practice marks a progressive step toward inclusive economic development.

Furthermore, the report highlights the need for continuous support and innovation in the informal sector. By leveraging technology and fostering a supportive regulatory environment, stakeholders can enhance the sector’s productivity and resilience, aligning with broader economic goals to ensure that growth benefits are widely shared and that the most vulnerable populations receive adequate support.

Moniepoint’s role in this initiative exemplifies the positive impact of public-private partnerships in addressing complex economic issues. As Nigeria moves forward, such collaborations will be crucial in building a robust and inclusive economy that leverages the strengths of all its sectors. The government’s recognition and support of these efforts signal a commitment to fostering an environment where innovation and inclusivity drive national prosperity.