Entrepreneurship in Nigeria's informal sector is a critical component of its economy, with Lagos serving as a significant hub for such activities. An ethnographic approach was employed, involving participant observation and semi-structured interviews with entrepreneurs operating in various informal sectors across Lagos. Data collection occurred over a period of six months. Entrepreneurs reported encountering frequent regulatory hurdles, including inconsistent enforcement of business licences and taxation policies, which significantly impacted their ability to scale operations. Despite these challenges, the study identifies several opportunities for entrepreneurs in terms of niche market development and leveraging digital platforms for improved visibility and customer reach. Regulatory bodies should streamline licensing procedures and provide more transparent guidance to support informal sector growth. Additionally, there is a need for increased investment in digital infrastructure to enhance accessibility.