Abstract
The informal economy constitutes a significant component of economic activity in developing countries, particularly in Sub-Saharan Africa, where it plays a vital role in employment generation and income diversification. In Nigeria, informal entrepreneurship serves as both a survival strategy and a pathway for innovation within constrained institutional environments. This study examines entrepreneurial opportunities and challenges within Nigeria’s informal economy, drawing on field-based evidence from the Lagos International Trade Fair. Adopting a qualitative case study approach, data were collected through participant observation and semi-structured interviews with informal entrepreneurs across diverse sectors. The findings reveal that informal entrepreneurs leverage opportunities such as low entry barriers, access to dense consumer markets, adaptive product innovation, and strong social capital networks. However, these opportunities coexist with persistent structural constraints, including limited access to finance, infrastructural deficiencies, and regulatory uncertainty. The study further demonstrates that informal entrepreneurship extends beyond necessity-driven activity, encompassing opportunity-oriented behaviour and incremental innovation. By focusing on a hybrid commercial environment where formal and informal systems intersect, the research provides micro-level insights into entrepreneurial practices often overlooked in macro-level analyses. The study concludes by advocating for context-specific policy interventions aimed at enhancing financial inclusion, improving infrastructure, promoting digital adoption, and supporting inclusive entrepreneurship.