Open AccessInformal Sector and Nigerian Economic Prospects: The Covid–19 Experience
Author(s) -
K Nnabuife Ezimma,
Ifeanyi Emmanuel Okoli,
Anugwu Chika Clara
Publication year - 2020
Publication title -
european journal of business and management research
Language(s) - English
Resource type - Journals
ISSN - 2507-1076
DOI - 10.24018/ejbmr.2020.5.4.397
Subject(s) - informal sector , government (linguistics) , incentive , business , economic sector , economic growth , enforcement , covid-19 , developing country , economic policy , development economics , economics , market economy , economy , political science , medicine , linguistics , philosophy , disease , pathology , infectious disease (medical specialty) , law
The informal sector is essential for economic growth. It is a key provider of jobs and income in emerging economies. But the crisis caused by the pandemic has had a significant impact on these economies. Therefore, this study investigates the impact of Covid-19 on the economic prospects of the informal sector of Nigeria and also proposes various strategies to support the sector. The study highlights some of the challenges facing the informal sector of Nigeria, such as institutional inadequacies, unsafe working conditions, poor enforcement and the non-participation of informal entrepreneurs in decision-making. The impact of Covid-19 is felt in different ways, which means that all the elements of total demand will be reduced. The study recommends that the government implement effective and cost-effective tax incentive packages to minimize the impact of corona virus pandemics on the informal sector. The government should also step down from paying taxes in critical areas in response to the crisis to support the informal sector and other businesses.