Economic Community of West African States (ECOWAS) Parliament has raised concern over the dominance of the informal sector in West Africa.

It warned that nearly 90 per cent of economic activities and at least 60 per cent of the region’s workforce remain outside the formal economy, a situation lawmakers said was undermining economic growth, job creation and regional competitiveness.

The parliament yesterday called for far-reaching policy reforms to formalise and strengthen Micro, Small and Medium Enterprises (MSMEs), describing the sector as central to achieving economic transformation, reducing poverty and addressing insecurity across the sub-region.

The warning came at the opening of a Joint Committee meeting of the ECOWAS Parliament in Cotonou, Republic of Benin, where lawmakers, policy experts, private-sector operators, and development partners began deliberations on strategies to integrate millions of informal businesses into the formal economy.

Delivering the opening remarks on behalf of the Joint Committee on Industry and Private Sector, Macroeconomic Policy and Economic Research, Administration, Finance and Budget, and Public Accounts, Co-Chairperson, Alhagie Darbo, said the statistics reflected both the entrepreneurial resilience of West Africans and the failure of existing policies to support business growth.

According to him, while MSMEs remain the backbone of local economies by creating jobs, driving innovation, promoting entrepreneurship, empowering women and youths and facilitating cross-border trade, the overwhelming majority continue to operate informally, preventing them from accessing finance, technology, markets, business support services and legal protection.

‎‎ECOWAS Parliament made the observation just as Nigeria’s Minister of Foreign Affairs, Bianca Odumegwu-Ojukwu, held a bilateral meeting with the Chairperson of the African Union Commission, H.E. Mahmoud Ali Youssouf, yesterday.

The meeting is ahead of the Forty-Ninth (49th) Ordinary Session of the Executive Council of the African Union (AU
‎ According to her statement on X, the discussion covered Nigeria’s role within the African Union, the appointment of Nigerians to the AU system, regional political developments, and Africa’s socio-economic future.
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She noted that Youssouf commended Nigeria’s longstanding leadership role within both the AU & ECOWAS, in the fight against terrorism and its pivotal role in promoting regional peace, stability & integration.
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According to her, Youssouf observed that Africa has not invested sufficiently in artificial intelligence and commended the Dangote Group’s investments across the continent as an example of African-led industrial development advancing regional integration, strengthening industrialisation & self-reliance in strategic sectors, & creating employment opportunities across the continent.