The expression “informal economy” encompasses a huge diversity of situations and phenomena in the country. However, working in the informal economy is often characterized by small or undefined workplaces, unsafe and unhealthy working conditions, unregulated, low levels of skills and productivity, low or irregular incomes, long working hours, and lack of access to information, markets, finance, training, and technology. The activities that occur outside the legal framework are considered informal. The informal economy can be seen either as the nature of the enterprise operation or the nature of employment relationship that exists in the business. That said, millions of Nigerians especially those that reside in the economic hub of the country, Lagos State –live, work, trade and produce in this informal economy and also engage the vulnerable citizens. From context observation, the informal sector in Nigeria is bigger than the formal sector in terms of employment and output year on year. In some cases, the informal economy is referred to as a shadow economy if associated with illegality and illicit activities such as internet scams, black markets, crime, production, and smuggling of illegal drugs, and money laundering, or as the case may be. For the informal economy, one thing is sure, informality provides critical economic opportunities for the poor and the vulnerable.