Experts are agitated about the unpromising prospects the informal sector as the government fails to give it the needed attention.
The President of Association of Senior Civil Servants of Nigeria, Tommy Okon, told The PUNCH in an exclusive chat that the incoming government should focus on the informal economy as it constitutes a larger portion of the population.
He said, “To gain the support of this sector, the government should prioritise the development of necessary infrastructure to facilitate the growth and success of informal businesses.
“It is true that there have been efforts by the government to structure the informal sector, which is why clustering has been employed as a strategy.”
According to him, the informal sector contributes about 70 per cent to the Nigerian economy and comprises a significant portion of the workforce.
He explained that the lack of scrutiny and protection for employees in the sector was disturbing, as the laws require that employees should be monitored and protected.
In the same vein, the Technical Director of Drill Bits at Template Design Limited, Bala Zaka, stated that the informal sector was characterised by a lack of proper documentation and management, leaving workers vulnerable without adequate protection.
According to him, this results in lower productivity levels compared to other sectors, which has adverse impact on the sector.
He said, “If we expect to see high levels of productivity in the third or fourth quadrant, but it does not materialise, it will have negative consequences for Nigeria.
“When we eventually try to assign costs and monetise the output, it would affect the country’s overall output, utilisation, and capacity.”
He explained that the failure to achieve high levels of productivity in these quadrants will have a significant impact on Nigeria’s economy.
According to him, investment in human capital is vital for most nations, as it can have a significant impact on a country’s productivity, revenue generation, and capacity utilisation.
