Entrepreneurship in Lagos' informal sector is a critical area of study due to its significant economic impact on Nigeria's growth trajectory. Theoretical development will be employed through a literature review and conceptual analysis to identify key themes and frameworks relevant to entrepreneurship in Lagos' informal sector. This theoretical framework identifies the complex interplay of opportunities and challenges that entrepreneurs face within the informal sector of Lagos, Nigeria. Further empirical research is suggested to validate these insights and inform policy development aimed at enhancing entrepreneurship in the Lagos informal sector.