Session 2: The Political Economy of the Informal Sector: Changing the narrative Discussion: The Role of the Informal Sector in Creating Work Opportunities for Youth Session 2 focused on the informal aspects of youth (un) employment and livelihoods. The informal sector often referred to, as the ‘hustle’ is a crucial sector in Africa. The session also explored how critical uncertainties such as climate change, rapid urbanisation, and technological innovation (among others) might affect how people in this sector connect, work, thrive, or struggle in future urban environments.
THINKPIECE Mr John Oluwadero – The Role of the Informal Sector in Creating Work Opportunities in Nigeria In Nigeria, 18.8% of the population is unemployed. Many challenges exist within the formal sector that has directly and indirectly led to the growth of the informal sector. These challenges include high taxes for small businesses, which discourage these
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businesses from ‘formalising’. According to Oluwadero government’s taxation strategy is counter-intuitive to growing small businesses. Many of the youth interviewed as part of this research were gaining livelihoods in the informal sector. Most of them are leveraging social media to market and grow their businesses. However, the informal sector itself is not without challenges: of the youth surveyed, some have issues of access to working capital; another major impediment is difficulty in accessing affordable working spaces. The research underscores how the informal sector in Nigeria is making a significant contribution to the economy, is working to alleviate social ills such as crime and reducing capital/brain drain to other countries.