In the heart of Nigeria’s bustling streets, where small shops and market stalls dominate the economic landscape, an emerging wave of innovation is beginning to reshape the country’s informal retail sector. These informal retailers—popularly known as “mom-and-pop shops”—are the lifeblood of local communities, yet for decades they have remained underserved by formal financial systems and digital infrastructure.
One entrepreneur, seeing opportunity where others saw fragmentation, has launched a mission to bridge this gap—bringing technology, structure, and scalability to Nigeria’s informal retail space.
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A Vast but Fragmented Market
Nigeria’s informal retail sector accounts for more than 90% of retail activity in the country, according to a report by the World Bank. With an estimated population of over 220 million people and a growing urban middle class, consumer spending is rising—yet most transactions still occur through traditional, informal channels.
These include kiosks, roadside vendors, market stalls, and neighborhood stores that operate with little access to inventory systems, data analytics, or supply chain optimization. Despite their limitations, these retailers play a central role in delivering everyday goods such as food, toiletries, and household items to millions of Nigerians.
Seeing the Opportunity
For 31-year-old tech entrepreneur Ademola Akinyemi, the informal sector presented more than a challenge—it was a chance to create impact at scale. In 2023, he founded TradeBridge, a digital platform aimed at helping informal retailers access better pricing, restocking solutions, and small-scale financing.
“I grew up in Lagos and saw firsthand how hard shop owners work to keep their businesses running,” Akinyemi said. “But they lack access to basic tools like credit, inventory tracking, or even consistent supply. I realized that with the right technology, we could turn these fragmented shops into a powerful retail network.”
Leveraging Mobile and Data Technology
TradeBridge operates through a mobile app designed specifically for shopkeepers with limited digital literacy. The platform allows them to order goods at wholesale prices, track inventory, and receive low-interest credit based on their purchasing behavior—all from a basic smartphone.
Over time, the app collects transaction data that helps both the platform and its users make smarter business decisions. Suppliers benefit from access to real-time demand insights, while retailers gain visibility into which products sell best and when.
What sets TradeBridge apart from other B2B platforms is its community-based approach. The company recruits “last-mile agents” who visit stores, help owners onboard, and provide training—a critical step in building trust in areas where tech adoption is slow.
Tackling Systemic Challenges
Despite early success, the road to transforming Nigeria’s informal retail landscape is not without hurdles. Infrastructure deficits such as poor road networks and power outages continue to hamper logistics and storage. Many informal retailers also operate without business licenses or bank accounts, complicating efforts to scale digital solutions.
However, partnerships with local cooperatives, fintechs, and logistics companies have helped TradeBridge build a more resilient ecosystem. The startup is also working with microfinance institutions to offer savings and insurance products tailored for informal workers.
“There’s no silver bullet,” Akinyemi notes. “But if we can combine innovation with cultural understanding and grassroots trust, we can unlock massive value not just for businesses, but for the economy as a whole.”
The Bigger Picture
Efforts like TradeBridge are part of a broader movement across Africa, where startups are increasingly focused on digitizing the informal sector—from agriculture to transportation to retail. In Kenya, companies like Twiga Foods are using similar models to streamline food distribution. In Ghana, Shopa is helping small retailers digitize inventory and payments.
Nigeria’s sheer market size and urban density make it a prime testing ground for these innovations. If successful, models like TradeBridge could serve as blueprints for other emerging economies across the continent.
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