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Informality, Inclusiveness and Economic Growth in Nigeria


  • Mohammed Yelwa
  • S.A.J. Obansa Awe
  • Emmanuel Omonoyi

    () (Department of economics, university of Abuja, FCT –Nigeria, PMB 117, Gwagwalada, FCT)


The concept of inclusive growth requires analysis of how employment opportunities arise and change with growth process. Economic growth can be accompanied by an increase in informal employment. Informality may support growth by reducing labor cost and improving competitiveness. However, a well-functioning and regulated informal economy will be a critical prerequisite to achieve sustainable growth. In addition, a widespread informality with regard to employment, enterprise, and productive activities is frequently perceived as a barrier to full participation in the economy and as a hindrance to long-run economic development and poverty alleviation. This is because the link between, informality, growth and inclusiveness is not fully understood. Inclusive growth has been defined as growth that takes place in a context in which economic opportunities-including employment opportunities expand, the poor’s access to these opportunities improves, and inequalities are reduced. This paper seeks to investigate the impact of informal sector activities, inclusiveness and economic growth in Nigeria. A survey method will be use to collect data from 150 informal sector operators in Gwagwalada area council-FCT. Data will be collected using structured questionnaire and analyzed with multivariate Panel Logit model statistic in order to identify the perception of socio-economic impact of Informal sectors on economic growth in Nigeria. The findings revealed that informal sector operators has a positive and significant impact on growth in Nigeria; while poverty-mentality, illiteracy, high inflation, low infrastructure, access to credit, social safety nets and information dissemination are the major problems encountered by these institutions. The paper recommends among other things the education of the rural poor to embark on viable projects, infrastructural development and favorable government policies so as to regulate the sector becomes relevant

Suggested Citation

  • Mohammed Yelwa & S.A.J. Obansa Awe & Emmanuel Omonoyi, 2015. "Informality, Inclusiveness and Economic Growth in Nigeria," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(10), pages 33-44, September.
  • Handle: RePEc:mgs:ijmsba:v:1:y:2015:i:10:p:33-44

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    References listed on IDEAS

    1. Nitin Bhatt, 2002. "Determinants of Repayment in Microcredit: Evidence from Programs in the United States," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 26(2), pages 360-376, June.
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    More about this item


    Economic growth; Economic development; poverty; inclusive growth; informality;

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General


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