The most predominant type of informal finance in Nigeria is the Esusu. Under this policy, the Federal Ministry of Labour sought to address the gra duate unemployment problem through the NDE programme which provided participants with the opportunity to acquire entrepreneurial skills and secure loan capital to enable them establish and operate their own small scale enterprises. Moreover, through linkages with large-scale enterprises, informal sector enterprises have the production base of the economy. in Blockchain, Startups. African taxmen are in Nigeria strategizing on taxation of informal sector. Nigeria is an elephant among the Economic and West African States (ECOWAS) and a lion in Africa with our population of over 200 million people. Adebakin pointed out that the company had the capacity to export 100,000 cargo out of Nigeria regularly and hoped its partners across the world had the facilities to accommodate such huge amount of cargo. The informal sector thus, constitutes the final destination of an ever increasing number of job seekers. Informal economic activities in Nigeria encompass a wide range of small-scale, largely self … It is the backbone because most services that Nigerians require to keep things running come from the informal sector," the Nigerian-based analyst added. The Role of the Informal Sector in Nigeria's Economic Growth:The informal sector plays the following important roles in the growth and develop ment of the Nigerian economy: (i) Provides productive outlets for a large number of people who prefer or have to be self employed. All Rights Reserved. The government is aware of this, but decided to look the other way around in order to allow indigenous business to thrive.”. SMEs, therefore, no longer ben efit from preferential monetary policies. 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. Lagos- Mr. Segun Awolowo, the Chief Executive Officer of Nigeria Exports Promotion Council (NEPC) has said that Nigeria informal sector records at least N41 billion annually across the West African States. 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 … Akeem Ayofe Akinwale, The Informal Sector as a Catalyst for Employment Generation in Lagos State, Nigeria, African and Asian Studies, 10.1163/15692108-12341236, 11, 3, (315-344), (2012). The Federal Mortgage Bank of Nigeria (FMBN) said on Monday that the informal sector had the opportunity of accessing estate development loans through the National Housing Fund (NHF). The Nigerian Informal Sector (IS) is a major contributor to the Nigerian economy, accounting for a significant portion of employment and national GDP. Share. There has been a lot of focus on the fact that Nigeria's tax to GDP ratio of about 6.1% is quite low and appears to remain unchanged despite all the efforts of the tax authorities to improve collection. A tax exemption on interest income received on loans granted under the scheme was one of such incentives. The affected lockdown states include three of the most urbanised states in Nigeria, signifying that the impact of the lockdown would be skewed toward those who perform urban informal sector economic activities. 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. Nigeria’s informal economy accounts for 65% of GDP – IMF. So what is the informal sector? 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