Nigeria Consumer Business

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Where households reported running nonfarm enterprises in Nigeria

The 2023/24 household survey found that 77.2% of North West households had operated a nonfarm enterprise in the previous year. The North Central figure was 44.4%. Retail was the most common activity nationally, and only 13.1% of enterprises were reported as registered.

Sources checked

NBS Wave 5, 2023/24Households reporting a nonfarm enterprise
  • North West77.2%
  • North East59.5%
  • South West59.5%
  • South East55.4%
  • South South51.5%
  • North Central44.4%

The chart uses households in each zone as the denominator. The national rate was 59.2%.

Source 1

The North West was 32.8 percentage points above North Central

The share was 77.2% in the North West and 44.4% in North Central. North East and South West both came to 59.5%, close to the national estimate of 59.2%. South East was at 55.4% and South South at 51.5%. Source 1

Household savings were the most common startup funding source

The survey summary describes about seven in ten households using household savings for startup capital. It also reports 32.2% obtaining startup capital through relatives and friends. These responses describe sources households turned to. They cannot be treated as shares of the total naira invested. Source 1

Registration and borrowing were limited in the enterprise responses

The report gives a national registration rate of 13.1% for household nonfarm enterprises and says 9.0% requested credit in the previous 12 months. A request measures an attempt to borrow. It gives no approval rate and does not show how much any enterprise received. Source 1

Electricity and transport were the leading reported constraints

The report puts electricity at 20.3% and transport at 19.7% among constraints on operating and growing nonfarm enterprises. The regional chart uses households, while these figures come from enterprise responses. The underlying survey includes household activities that may not appear in formal company registers. Source 1

Sources

Open the data and source notes