Informal sector crucial for job creation and economic growth, says University of Lagos professor
Professor Kenneth Amaeshi, a Chair in Business Ethics at the University of Lagos, has urged governments and policymakers to recognize the informal sector as the primary driver of job creation and economic growth in Nigeria. Speaking at the FirstBank Samuel Asabia Professorial Chair in Business Ethics Public Lecture, Professor Amaeshi highlighted that while large corporations receive significant attention, they contribute minimally to direct employment compared to the micro-enterprises in the informal economy. He noted that the informal sector is where most Nigerians earn their livelihood, emphasizing that despite the wealth generated by large businesses, their capacity for direct employment is lower than that of small businesses. Professor Amaeshi also stated that while formalizing the informal economy is beneficial for accessing finance and support, rigid taxation often creates friction. He explained that small business owners are not against contributing to national development but are concerned about the transparency and accountability of tax revenue utilization. Mr. Olusegun Alebiosu, Managing Director and Chief Executive Officer of FirstBank Group, mentioned that the informal sector contributes approximately 42.5 percent to Nigeria鈥檚 Gross Domestic Product, according to National Bureau of Statistics data, and is a primary source of livelihood for millions. He stressed the importance of promoting ethical conduct without burdening small enterprises. The Vice Chancellor of
