Entrepreneurship is increasingly recognised as a critical driver of economic growth in developing countries, particularly within the informal sector where many businesses operate without formal regulations. The analysis is based on a review of existing literature and secondary data from government reports and industry surveys, providing an overview of the sector’s characteristics and trends. Entrepreneurship in Lagos’s informal sector faces significant challenges such as limited access to finance and regulatory hurdles, yet it also presents substantial opportunities for expansion and transformation. Policy makers should focus on improving financial inclusion and providing more supportive regulations to foster entrepreneurship within this dynamic sector. Informal Sector, Entrepreneurship Dynamics, Lagos, Nigeria