READ MORE Coronavirus: Food insecurity fallout from Nigeria’s lockdown. In the fourth story of our series on the impact of COVID-19 on Nigeria's economy, we look at why the country's neglected gas reserves need to form part of the energy reforms. and Financial Commentary – WE 13th July 2018, 15. The sector grew by 0.8% in 2017. The country’s Minister of Finance Ken Ofori-Atta argued the 21-day lockdown of Ghana’s biggest cities had become financially unbearable for most of the population, a concern that gave the government little choice but to lift the restriction. Taking into consideration the current state of these businesses, many financial service providers have adopted moratoriums and reduced/no interest rates for small businesses. The study found the informal economy significantly expanding in Nigeria. Single Digit Inflation Rate Now Unlikely - FSDH, 2. Like many other developing countries, the sector is considered crucial to job creation as it accounts for about 90 percent of jobs in the country. As a result of these initiatives, we have been able to gain a better understanding of what these micro- and small businesses in the informal sector truly need: firstly, access; secondly, skills; and thirdly, tailored service delivery and channels of access. This sector may be invisible, irregular, parallel, non-structured, backyard, underground, subterranean, unobserved or residual. Quarter on Quarter growth of the sector was recorded at –13.31%. The sector is vast and encompasses a host of activities, ranging from agriculture and food production to mining, trade, transportation, accommodation, and even recreation services, amongst many others. The campaign for a vaccine against the cororonavirus to be recognised as a global public good – patent-free, produced at scale and internationally available  – is making headway. 1 Six cities. Activities such as transport services generally have marginal electricity demand. An inclusive policy is one recognising and involving informal waste workers in solid waste management while also yielding improvements in their lives and waste management performance. With an estimated population of 1.3billion, 5.26% of Indians live in extreme poverty. By downloading this PDF you agree to subscribe to The Africa Report Daily newsletter, Coronavirus: Nigeria’s varied responses to controlling COVID-19, Coronavirus: Food insecurity fallout from Nigeria’s lockdown, Social infrastructure investment, a development priority in Africa, enhanced innovation and increased private sector participation, Coronavirus: South Africa to rev economy by easing lockdown, create business linkages between the formal and informal sector, Coronavirus is triggering deep digital change in African fintech, Coronavirus: South Africa’s unions fight for essential workers’ safety, Post-coronavirus: More sorrow for Africa’s new oil and gas producers, Coronavirus: Namibia praised for containing the virus, Call to graduates during coronavirus: ‘Don’t forget how you stayed connected’, Nigeria VS Coronavirus: Gas could be saving grace over crashing oil, Coronavirus: ‘People’s vaccine’ campaigners claim victory at WHO summit, Coronavirus: Reforms by Angola’s Lourenço helped mitigate effects of COVID-19, Ghana: Debt repayments greater than health or education spending. According to the Nigeria Bureau of Statistics, small and medium scale enterprises (SMEs) in Nigeria have contributed about 48% of the national GDP in the last five years. Such activities include photography, catering, hairdressing, motorcycle services, tailoring, fashion designing, carpentry, painting, etc. Informal activities are usually not captured in the process of computing GDP numbers. Still, despite this harsh reality, Salewa and her family are in a better position than the millions of individual construction workers, tradesmen and women, restaurant service workers, street vendors, market salespeople, and the millions of low-income Nigerians whose livelihoods have disappeared. Identifying the benefits that business expansion could create, she acquired a small loan early this year, and invested in a second stall at another market; it wasn’t long before she began to see returns on her investment. Women and the Informal Sector in Nigeria: Implications For Development The fuzzy boundaries and intertwined nature of informal and formal sectors in Nigeria has varied impact on the economy. With regards to informal economic activities, the government plans to empower 100,000 artisans across the country. Like many other developing countries, the sector is considered crucial to job creation as it accounts for about 90 percent of jobs in the country. This was an improvement from the rate of poverty in 2018 (which was at nearly 50%, an estimated 86.9m people), and yet, as the informal sector remains incapacitated, the ripple effect will eventually lead more people to regress into abject poverty, undoing much of the progress that may have been made in recent years. The informal sector in Nigeria currently accounts for 35 percent of Gross Domestic Product (GDP) or $178.5 billion. Nigeria has a burgeoning gig economy as well as a large informal sector, which contributes 65 percent of its economic output. The informal economy involves economic activities undertaken by individuals and organizations, which are not subject to full government regulations. However, a short term focus on maximizing gas availability would be a good start. The implementation of social protection programs to support workers, particularly those in the informal sector is crucial. The government could create and sponsor well-equipped platforms that bring individuals who intend to learn skills and corresponding experts together. #NGOutlook2018: Nigeria’s Sustained Economic Recovery in H2, 2018, Hinges on Conditions in the Oil M, 9. Nigeria’s GDP as at the end of 2015 was about N94.1 trillion out of which N38.7 trillion is from the informal and another N55.3 trillion formal. In Lagos state alone, the informal economy employs about 5.5 million people – about three-quarters of the state’s 7.5 million labour force. The informal sector, in which more than 80 percent of Nigerians work, includes a wide range of occupations, from street traders, taxi drivers, tradesmen, and … It’s through a participatory approach that the Government finally succeeded in integrating the informal sector into its taxation system. Expected Drop in Headline Inflation Drops to 11.23% in June 2018; 0.37% Lower Than May 2018 Rate, 12. The informal sector constitutes over 40% of the Nigeria Economy and is estimated to grow more. This is as the Federal Government has been called upon to create enabling environment for private investors to grow the economy. In the meantime, the government could focus on securing an adequate supply of gas to power stations. Therefore, this study assessed the prevalence, patterns and factors associated with occupational injuries among e-waste workers in the informal sector in Nigeria. of people who look to the informal sector for economic survival. As we go into the real world, we have to recognize the contribution of their labour to our education and commit to improving their lives. The ongoing worldwide pandemic has enlightened people on the need to be financially stable and successful, especially in a 3rd world country like Nigeria. READ MORE Coronavirus: South Africa to rev economy by easing lockdown. Private sector, businesses in Nigeria should tap into AfCFTA treaty ― Osinbajo On November 27, 2020 12:00 am In News by Temisan Amoye Kindly Share This Story: The informal economy is described as the sum total of economic activity that happens outside state regulation, which is neither taxed nor represented in a country's GDP. The purpose of this paper is to evaluate the role of informal sector towards Job creation and poverty reduction in Nigeria. IS seems difficult to tax because of administrative problems, human capital and personnel shortage, lack of record keeping, nature of its economic activities and cost implications. This is commendable, albeit with a potential marginal impact as the amount only represents 0.05% of total population and 0.12% of the country’s labor force. The country officially overtook India which has 73million of its population living in poverty. The Nigerian economy added 187,226 new jobs in the third quarter of 2016 after adding 475,180 a year earlier. The National Bureau of Statistics has released its 2015 GDP report by formal and informal sector revealing that the informal sector’s share of the Nigerian economy is about 41.1%. However, this formal-informal overlap comes with risks, especially when it comes to consumables. of Payments but Vulnerable, 14. As the population of Lagos has steadily increased, so has demand for her products, and ultimately, her revenue. Nigeria: Informal Sector Growth Threatens Decent Work Agenda, Says ILO ... 85.8 per cent of employment is in the informal sector. A study released in 2016 revealed that the informal sector … This is what we have focused on through our Bank of Industry capacity building initiatives, and our microcredit schemes, which are designed to provide no-interest micro-loans to micro-enterprises to support their growth. Downloadable! Human Capital Remains Key to Unlocking Nigeria’s Economy, 20. Manufacturing PMI Stands at 56.8% in July 2018 from 57.0% in June 2018, 6. This could draw actual power output closer to its potential pending the time the country sees other significant investments that could raise capacity. READ MORE Social infrastructure investment, a development priority in Africa. The size of the informal sector in Nigeria is estimated at about 65% and consists of activities that range from agricultural production to mining and quarrying, small-scale building and construction and machine-shop manufacturing. 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