Impact of Rural-Urban Migration on Growth of Urban Informal Sectors in Alimosho Local Government Area Lagos State, Nigeria

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Impact of Rural-Urban Migration on Growth of Urban Informal Sectors in Alimosho Local Government Area Lagos State, Nigeria

1Adeneye, O.A.; 2Saheed, Z.S. &3Ibrahim, G.U.

1&2Department of Economics, Faculty of Arts and Social Sciences, Nigerian Defence Academy Kaduna

3Department of Economics, Faculty Social Sciences, Kaduna State University Kaduna

Corresponding author: Saheed, Z.S.

Email: zakss_1@yahoo.co.ukk,

ABSTRACT

This study examines the impact of rural-urban migration on growth of urban informal sector in Alimosho local government area, Lagos state, Nigeria. Data were collected through informal interview and structured questionnaire administered to a sample of 400 household of which 348 questionnaire were correctly filled and returned. To analyze the data collected from the respondents, the data was coded and rated on 5 point likert scale and multiple regression analysis was used in testing the hypothesis. The result shows that rural-urban migration has positive and statistically significant impact on growth of urban informal sector. In additions, AGGCD and HEY stated in the model as control variables equally have positive and statistically significant impact on the growth of urban informal sector (GURIS). Similarly, the result shows that educational status of the rural-urban migrants has positive but statistically insignificant impact on growth of urban informal sector. Based on the findings, the study therefore recommends that Lagos state government should formulate policy that will direct and encourage the inflow of rural-urban migrants toward informal sector by providing necessary infrastructure, tax rebate and incentive inform of accessibility to soft loan with low interest rate for the migrants who resolve to work in the informal sector of the economy. Furthermore, policy that will encourage investors and entrepreneurships in the informal sector should be implemented. This includes; reduction in company tax holding, low interest rate to investors and entrepreneurships, easy of doing business, infrastructural development among others that will directly or indirectly create conducive business environment for informal sector to thrive. Keywords: Rural-urban migration, Inflationary pressure, urban unemployment.