Sociodemographic factors associated with informal sector activities in selected urban areas of Nigeria

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Abstract

The study examined the relationship between informal economic activities, geopolitical regions/ecological zones and other sociodemographic variables in Jos, Owerri, Port Harcourt and Sokoto in Nigeria. Data were collected from 7605 informal business operators in four urban areas by using a simple data collection form. The analysis was carried out with descriptive statistics, chi-squared test statistics, correlation statistics and multinomial logistic regression models. The results showed significant differences in the different regions in terms of engagement in informal activities, including the age of respondents (chi = 784.38; p < 0.000), gender (chi = 1400; p < 0.000), education (chi = 1700; p < 0.000), marital status (chi = 663; p < 0.000) and economic activity (chi = 1400; p < 0.000). Finally, the logistic models indicated that the region of residence and sociodemographic characteristics significantly predicted the likelihood of engaging in different informal activities. The study recommends taking the demographic, regional and ecological profiles of the informal sector operators into consideration in the formulation of new government policies and programs for the growth of the informal sector and the well-being of people engaged in it. Further, it recommends the sensitization of the various informal sector subgroups by governmental agencies, non-governmental organizations and international actors according to the types of informal activities in which each has a comparative advantage. Apart from the direct benefits of the investigation to the people in the four Nigerian cities, the study is expected to be of value to other urban areas in the country and their counterparts in developing countries.

Keywords

informal activities / geopolitical regions / demographic / economic / Nigeria

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