The informal sector in Nigeria: An alternative path to economic growth

Le secteur informel au Nigéria: une voie alternative pour la croissance économique

Joseph Olugbenga Omoloba and Rodolphe Bardot
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Joseph Olugbenga Omoloba: LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM]
Rodolphe Bardot: CCIP IDF - Chambre de commerce et d’industrie - Paris-Île de France

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Abstract: The informal sector does not only make a significant contribution to the Gross Domestic Product (GDP) of many African countries, but a major potential source of entrepreneurship, especially for those who do not have access to markets and productive resources to join the formal sector. The objective of this article is to make reflection on the informal sector as an important factor for economic development in a country like Nigeria. To fill the research gap, we developed a theoretical framework that focuses on a decision matrix regarding the level of informality. This study took samples from the population of entrepreneurs and business owners operating informally in different market areas in Lagos. A random sampling method was used to classify informal entrepreneurs into micro, small and medium enterprises. We collected a total of 120 questionnaires from entrepreneurs who have participated in or have been operating in the informal sector since 2013. The benefits of working in this industry, including the relative freedom it offers entrepreneurs to run their businesses are obvious. In addition, the sector is an essential supplier of goods and services for low-income social groups. The results of this study suggest that the productivity of the informal sector should be improved by proposing supportive policies.

Keywords: informal sector; theory; growth; economic development; job creation; secteur informel; théorie; croissance; développement économique; création d’emplois (search for similar items in EconPapers)
Date: 2023-12-13
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Published in Management & Sciences Sociales, 2023, 35, pp.43-57. ⟨10.3917/mss.035.0043⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04638046

DOI: 10.3917/mss.035.0043

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