Article Index

International Journal of Research and Development Studies

Volume 7, Number 2, 2016

ISSN: 2056 – 2121

THE INFORMAL SECTOR OF THE URBAN ECONOMY AND POVERTY ALLEVIATION: NECESSITY UPON THE STATE.

Allwell Ome-Egeonu

Department of Sociology

University of Port Harcourt, River State, Nigeria

E-mail: alome This email address is being protected from spambots. You need JavaScript enabled to view it.

 

ABSTRACT

This study examines the place of the information sector on the lives of Nigerians (Port Harcourt metropolis inclusive and consequently establishes the relationship between this sector and the poverty level in the state. This is due to the fact that the Post-Colonial Nigeria has witnessed progressive rise in the rate of unemployment. The rise in unemployment has been found to be either cyclical (that is high during periods of economic depression) or structural (that is, created by structural imbalance, for example schools turning out more graduates than the labour market can absorb)  Generally, this growing rate of unemployment which is a major feature of an ailing economy has been largely due to: (1) the urban population; the economic dependency level which has imposed various unfavorable and hard-biting economic measures on the teeming populace .Consequently, the informal sector has become important in absorbing some of the over available manpower. In fact, poverty has remained a major feature in the lives of most Nigerians, especially those in the informal sector. To achieve the objectives of this study, questionnaires, interviews and observational techniques were used as sources of data collection. Hypotheses were framed based on the objectives and z-test of mean was used to analyze the data. The study recommends, among others, that government should encourage stronger cooperative association amongst the informal sector and ensure that community leaders stand as surety for those applying for loans from them.

Keyword: Informal sector, Poverty, economy, unemployment, urban 

 

INTRODUCTION

The fact that there is urban poverty in Nigeria is not news. In response to this situation. The poor have tried to find ways of increasing their income and thereby improve their standard of living. In order to augment income, as many members of the family as possible (father, mother, children) engage in one form of trade activity or the other. In other words, in order to survive, the poor do everything possible to augment their income.

 

Mc Gee (2009) has identified the efforts made by the poor to improve income and resources: (1) As many members of the family as possible engage in one form of income generation or the other. These family members range from the children to the grandparents. In many of the poorer nations where self-employment thrives, family and kin labour inputs are necessary part of the work organization. Indeed it is immensely difficult to distinguish so-called domestic work from other activities as member of the family often combine the expenditure-saving activities such as cooking the family food with income generating activities such as training for cooked food stalls, (2) the poor are involved in different types of occupation; so far as a mill operator in the market (that is, for blending/grinding of condiments such as crayfish and tomatoes) could at the same time be a crayfish seller. (3) The poor and are forced to borrow money from diverse sources. Whether the purpose of borrowing is for business or for personal consumption, the poor are forced to borrow and accumulate capital from unofficial sources such as relatives, friends and local money lenders.

 

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