Listed Date June 25, 2014 02:01 AM Viewed:4646

Nigeria's informal Sector Accounts for 57% of GDP

 

Website URL http://businessdayonline.com/2014/06/nigerias-informal-sector-accounts-for-57-of-rebased-gdp-says-un/#.U6rG8UDZ7sU
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Listed Date: June 25, 2014 02:01 AM
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Contact Name  ONYINYE NWACHUKWU, BusinessDay Abuja 
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Nigeria’s informal sector accounts for as much as an estimated 57.9 percent of the nation’s rebased Gross Domestic Product (GDP), Daouda Toure, United Nations resident coordinator/representative of the United Nations Development Programme (UNDP) in Nigeria, disclosed on Tuesday.

This, perhaps, makes the country the largest destination for informal activities in Africa.

Toure disclosed this at the validation workshop on the report of the pilot study on ‘Informal Sector and Economic Development in Nigeria’ which found the six pilot states, Abia, Rivers, Bauchi, Kano, Niger and Lagos, hosting about 6 million informal sector operators, and employing up to 14.37 million people.

In a keynote remark, Toure said the study on ‘Informal Sector and Economic Development in Nigeria’ is important and timely because empirical understanding of the Nigerian informal sector including its size, structures, processes and practices is critical for economic planning, including employment creation and for poverty alleviation.

The study was conducted by the National Planning Commission, working with the Nigerian Institute of Social and Economic Research, National Bureau of Statistics and also in collaboration with the UNDP.

The first phase was conducted in six states while the second phase of the study is already ongoing in SEEFOR beneficial states of Edo, Delta, Rivers and Bayelsa. The last phase will be conducted nationwide.

Toure said the study identified lack of access to credit; poor technical know-how; inadequate training opportunities, infrastructure deficit, and incoherence of the formal and informal sectors, amongst many others, as factors which inhibit the growth of the informal sector in the country.

He noted that although the informal sector has been expanding rapidly in the 21st century, its specific role in the economic development of many countries is yet to be fully documented while relationships between it, economic growth, and poverty are not fully clear.
As such, governments at all levels are making efforts to design the right policies required for enhancing the performance of the informal sector; and strengthening its linkages to economic development, the UN envoy noted.

In his opening address at the workshop, Bashir Yuguda, supervising minister of the National Planning Commission, said the comprehensive study was the first on the informal sector of the nation’s economy in the last ten years.

Yuguda noted that the Nigeria’s informal sector is undoubtedly large, even though its magnitude relative to the GDP was yet to be fully determined.

He also observed that the potential of the sector in providing employment for the teeming population, reducing poverty and contributing to the nation’s GDP growth aspirations cannot be overemphasised.

He, however, raised the concern that despite these anticipated benefits, there are still knowledge gaps about the character and appropriate role of the informal sector in Nigeria.

He said it was in realisation of this that the study has not only assessed the contribution of the informal sector to the Nigeria’s economic development, but has also undertaken an in-depth appraisal of the characteristics of the sector, including issues of size, structure, processes and practices, while exploring the prospects for integrating it into formal economy.

Source: http://businessdayonline.com/2014/06/nigerias-informal-sector-accounts-for-57-of-rebased-gdp-says-un/#.U6rG8UDZ7sU

 
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