Entrepreneurship in Lagos' informal sector is a burgeoning area of interest due to its significant economic role and cultural significance. We employed qualitative research methods including semi-structured interviews with 30 informal sector entrepreneurs in Lagos, Nigeria. Entrepreneurs reported a strong demand for their products/services, particularly in local markets, which represented an opportunity. However, they also encountered significant regulatory hurdles and lack of access to formal financing as major challenges. The findings highlight the complex interplay between opportunities and constraints faced by informal sector entrepreneurs in Lagos, Nigeria. Policy recommendations include streamlining regulations and enhancing support for informal sector businesses.