Growing Populations

The traditional and informal sector was expected to disappear as the modern or formal sector grew and absorbed more labour in enhancing economic growth and development. But contrary to expectations, the informal sector and informal employment has continued to be a significant factor in our modern world gaining predominance (ILO, 2012; ILO, 2014). Many countries have not been able to develop a modern economy capable of providing adequate employment opportunities for their rapidly growing populations. With 53% of new employment generated in 2014, Nigeria’s informal sector, constituted by over 17 million businesses and enterprises, which led to the growth in total job creation within the period reflecting the significant contribution of that segment to the labour market and the overall economy (NBS, 2015). The informal sector remains a major source of employment, income generation and expansion of small and medium businesses in many countries of the world in which Nigeria is not an exemption. The informal sector consists of own account or small and medium enterprises with little or no formal organization or capital, and with casual employment.