Towards Economic Sustainability of Nigerian Cities: The Informal Sector Question
1Ola, A. B. & 2Adewale, Y. Y.
1’ 2Department of Urban and Regional Planning,
Federal Polytechnic, Offa, Kwara State, Nigeria
E-mail: olabayo22@yahoo.com
ABSTRACT
This paper examined the contributions of informal sector to socio-economic development of Nigerian urban centres with a view to craving the indulgence of policy makers for appropriate policy framework to facilitate sustainable development of the sector and Nigerian cities. Among the significance of the sector identified in the paper are: employment and income generation; income redistribution; prompt financing of informal enterprises; as well as contribution to the country’s Gross Domestic Product (GDP). The paper also identifies some of the challenges of informal sector development, among which are: lack of appropriate financing mechanisms; poor infrastructure development; harassment by overzealous government agents; cumbersome registration procedures; and stiff competition from formal (especially foreign) firms. The paper therefore suggests the formulation of a clear-cut policy to facilitate: a less-cumbersome formalization of informal enterprises; increased access to finance; and training and re-training of the operators in the sector.
Keywords: Informal sector; Development; Employment; Income; Gross National Product
