DON: INFORMAL SECTOR CRUCIAL TO NIGERIA’S JOB GROWTH

A professor at the University of Lagos, Kenneth Amaeshi, has called for greater recognition and support for Nigeria’s informal sector, describing it as a major driver of employment and economic activity.

Amaeshi made the call while delivering the inaugural lecture of the FirstBank Samuel Asabia Professorial Chair in Business Ethics Public Lecture at the University of Lagos.

Speaking on the informal economy, he said small businesses and micro-enterprises provide livelihoods for far more Nigerians than large corporate organisations, despite receiving less attention from policymakers.

He noted that businesses operating in the informal economy play a significant role in job creation across both urban and rural communities.

Amaeshi, however, said efforts to formalise the sector should not rely on rigid taxation systems that could place additional pressure on small businesses.

He argued that many small business owners were willing to meet their tax obligations but wanted greater transparency and accountability in how public funds were used.

FirstBank Group Managing Director, Olusegun Alebiosu, said the informal sector contributes about 42.5 per cent to Nigeria’s Gross Domestic Product, according to data from the National Bureau of Statistics.

Alebiosu said the sector remains an important source of employment and income but continues to face challenges including limited access to finance, infrastructure, technical support and formal business structures.

The stakeholders called for policies that would help informal businesses grow while improving accountability and encouraging gradual formalisation.