Journal of Physical Science and Environmental Studies

Research Paper|Published April, 202|Vol. 12(1):1-5.

https://doi.org/10.36630/jpses_26010

 

Examining the Role of Informal Sectors in Urban Economies in Aba Urban, Abia State, Nigeria

 

Chidinma Jane Nwobi

 

Department of Urban and Regional Planning, Abia State University, Uturu, Nigeria.

 

ABSTRACT

The informal sector is a vibrant component of urban economies in emerging countries, providing income for city residents. In Nigeria, it plays a major role in poverty reduction,  job creation, and revenue generation. This study focuses on Aba Urban, in Abia State, southeastern Nigeria, and examines the role and contributions of the informal sector to local economic development. Key areas of interest include employment creation, income distribution, poverty reduction, and urban growth. Aba Urban is a commercial hub in Abia State with a thriving informal sector. This sector involves activities such as trading, fabrication, and service provision. These activities offer jobs for many households, helping to alleviate poverty and advance the economy. The study surveyed 180 informal sector operators and conducted stakeholder interviews using a mixed-methods approach. Purposive sampling was used to include a diverse range of informal sector operators in Aba Urban. Descriptive statistics were analyzed from survey data, while thematic analysis was used for stakeholder interviews. The study reveals that women predominantly participate in the informal sector, with limited access to education and finance identified as major barriers. Financial access, in particular,  is a significant obstacle, especially for women (83.3%). Infrastructure and regulatory challenges, however, are not strongly gender-specific. It also found that the informal sector accounts for about 65% of employment through trading and small-scale industries. Therefore, the government and financial institutions should provide financial support and incentives to help informal sector operators access credit and expand their businesses. Additionally, investment in infrastructure, such as markets and transportation, is necessary to support informal sector activities.

Key Words: Informal sector, urban economy, job creation, poverty reduction, revenue generation.

 

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