By Yinka Kolawole
A recent survey has revealed that 54 percent of businesses in Nigeria remained unregistered in 2025 indicating a modest rebound in business formalization after years of decline.
The report on the 2025 State of Entrepreneurship Survey conducted by FATE Foundation shows that 46 per cent of Nigerian entrepreneurs operated formally registered businesses in 2025, up from 42 per cent in 2024. 
Despite the improvement, the report noted that a larger proportion – 54 per cent – still run unregistered enterprises, underscoring the deep roots of informality across the country’s entrepreneurial ecosystem.
“In 2025, 46% of Nigerian entrepreneurs reported their businesses being formally registered, up from 42% in 2024. Despite this slight improvement, the data reveal that more than half (54%) of enterprises still operate informally,” report stated. 
Analysis of the survey shows a five-year trend of persistent volatility in formalisation. The share of unregistered busi
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