Academic literature on the topic 'Informal sector (Economics) – Nigeria – Enugu'

This study examines the neoliberal thesis which contends that trade openness could support the economic recuperation and development of the peripheral states. Particularly, it reviews the current trade regimes in Nigeria with a view to understanding how they impacted the livelihood of informal economy operators in Enugu state. The study argues that the dismantling of Nigeria’s territorial borders through various trade policies of government negates the development of the informal economy in Enugu state by stifling the growth of small and medium enterprises (SMES) and leading to a general decline in the income and wellbeing of small scale business operators. It notes that trade openness is a ploy by the western capitalist states to perpetuate their dominance in the international political economy to the detriment of peripheral states, whose productive forces are still at a rudimentary stage. The theoretical foundation of the study was situated within the prismatic compass of Dependency theory while triangulation of data, involving review of official documents and other relevant literature as well as the use of questionnaire was deployed in this study. From the findings, the study recommends that Nigeria should reappraise its trade policies to stimulate the development of the informal sector and enhance the wellbeing of the indigenous entrepreneurs.

One of the persistent environmental issues today is high noise levels in residential areas especially in the developing countries. There are several unorganized informal sector activities such as recreational, road traffic, household and religious activities, operation of power generating sets, incompatible uses in space among others that are the sources of noise pollution in residential areas. A number of empirical studies have been carried out on the impact of noise on residential property values. However, one finds it very difficult to ascertain whether noise pollution affects residential property value in Enugu Urban. The aim of this study is to ascertain whether noise pollution has significant influence on residential rental values in the study area. The study has discovered that residential properties affected by noise pollution have lower rental value compared to those unaffected by 3.1% of its rental value. The study has provided some insight to guide property buyers or users, investors, property managers, and valuers as regards property transactions. The study has suggested that property value spatial index of noise pollution in the study area can be built and use as a guide for urban management strategy to achieve sustainable development.

The study analyzed the economics of pineapple production in Awgu Local Government Area (LGA) of Enugu State, Nigeria. Data for the study were collected from 50 respondents from Amoli and Ihe communities of the LGA through a simple random sampling technique. The communities were purposively selected because they contain higher concentration of pineapple farmers. Primary data were collected using interview schedule administered to the respondents. Data were realized with descriptive statistics, enterprise budgeting techniques and multiple regression analysis. The study revealed that (36%) of the farmers had farming experience of 1 to 10 years’ experience in pineapple production, indicating that new farmers entered the crop’s production sector within the last decade. The enterprise proved profitable with farmers’ net return on investment value of 1.7. Farm size, cost of input, level of education and household size significantly determined net farm income. It was further revealed that poor access road and high transportation cost were the main constraints of the pineapple producers. The study concluded that profitable production opportunities exist on the crop. The study recommends that extension agencies should encourage more new farmers to exploit pineapple production potentials while encouraging its existing farmers to scale up production through farm size increment, reinvestment of their gains and production knowledge increase.

The aim of this paper is to evaluate critically four competing theories that variously explain informal sector entrepreneurship as a traditional activity that has not yet been incorporated into the modern system (modernization theory), a form of production integral to contemporary capitalism conducted by marginalized population groups as a survival strategy (structuralist theory), a voluntarily chosen endeavor and popular reaction to excessive regulation by the state (neo[Formula: see text]liberal theory) or a voluntarily chosen practice conducted for social, redistributive, political resistance or identity reasons (post-structuralist theory). Reporting the results of face[Formula: see text]to[Formula: see text]face interviews with 215 informal entrepreneurs in Zamfara, a tropical region in Nigeria, the finding is that no one theory is universally valid. Instead, each theory is valid in relation to different groups of entrepreneur and only by combining all of them can a finer-grained and more nuanced explanation of the complex and heterogeneous character of informal sector entrepreneurship be achieved.

Problem of inadequate housing faced by poor people around the world has been a matter of concern to governments in various countries especially in the developing world whereby significant portion of the population is mostly characterized by poverty. In such countries, the housing problem is not only that of quantity but also of the poor quality of available housing units. Private sector development in the Nigerian housing sector has been a standstill for more than a decade. With few exceptions, the private sector transactions that have taken place have been informal and on the fringe of legality. At the opposite of the spectrum, public sector activity is plagued with many problems. Instead of operating as a social policy, it operates more like a regressive lottery or patronage system. The results have been the simultaneous construction of some of the most luxurious subsidized housing in Africa, and general deterioration in housing conditions of most Nigerians, particularly the housing conditions of the poor. The recorded history of formal intervention into the housing sector in Nigeria dated back to the colonial administration, after the unfortunate outbreak of the bubonic plaque of 1928 in Lagos. This necessitated the establishment of the Lagos Executive Development Board (LEDB). This signifies the ushering of Nigerian public housing programmes intervention; which was during colonial era. The policies are modest with the ultimate aim of addressing the housing problem at a National scale. The policy focus then, was on the provision of expatriate quarters and some selected indigenous staff in Rail ways, Marine, Police and Armed forces. The construction of senior civil servant quarters in the capital city of Lagos and regional headquarters like Kaduna, Ibadan and Enugu are some of the practical efforts made at the same time some form of rent subsidy and housing loans.

The study examined the economics of pig enterprise in Udi Local Government Area of Enugu State, Nigeria. Despite the economic leverage and nutritional advantages of pig, its production still remains the least when compared to other livestock sub-sector. The study specifically described the socioeconomics characteristics of pig farmers, examined the factors influencing revenue from pig production, estimated the costs and returns in pig production and examined the problems faced by pig farmers in the area. Purposive and random sampling techniques were used in the selection of 60 farmers for the study. Primary data were collected from the selected farmers with the aid of structured questionnaire. Data were analysed using descriptive statistics, net income and multiple regression models. Results showed that majority of the respondents (85%) were male, married (81.7%), literate (100%) with mean age and household size of 48 years and five persons, respectively. Majority (88.3%) of the respondents sourced their capital from personal savings and 95% of them had crossed breeds of pigs. The determinants of net income from pig production were education (−0.271), cost of feed (0.687) and cost of labour (0.329). The profitability and the viability of piggery enterprise in the study area were shown by the gross margin, net farm income and the return on investment of ₦824,395.30 ($2,269.56), N747,797.42 ($2,058.69) and 0.84 (84%), respectively. Huge capital required for the investment, inadequate extension education, high cost of feed, diseases and parasite infestation, poor farm management, high cost of veterinary services, insufficient credit facilities and subsidies, and infant mortality and cannibalism were the major constraints faced by the farmers in the piggery enterprise. The study recommends that the government and other relevant agencies should provide subsidies and make credit facilities available and accessible to pig farmers in the study area. Key words: pig production, enterprise, gross margin, profitability, Nigeria

This study explored how picking waste materials has aided sustenance in the livelihood of scavengers, an informal sector in Nsukka urban area of Enugu State, Nigeria. It aimed at identifying the demographic and socioeconomic characteristics of scavengers as well as the type and uses of collected waste materials. Survey research design was adopted in this study. A total of 411 scavengers (45.7%) were sampled out of the available 900 scavengers in the four administrative units of Nsukka Urban area as follows; Ihe/Owerre (165), Obukpa (82), Nru (82) and Mpkunano (82). The data were collected using the instrument of questionnaire, oral interview, and field observation. Data obtained were analyzed using percentage and rank methods, graphs (especially bar and pie graphs), and KrusKal-Wallis statistical techniques. The socioeconomic features of the respondents identified were; gender (males, 88.8% and females 11.2%); age (5-25years (19.4%), 26-45years (47.2%), and above 46 years (33.4%)); education (non-formal education (13.4%), FSLC (46.6%), GCE/SSCE (36.4%), OND (2.0%), HND (1.0%) and B Sc/B.A. (0.6%)); and Marital status (single (64.4%),and married (6.6%), widowed (17.8%) and divorced (11.2%)). The results obtained reveal that useful materials collected in the area originate in descending order from metals (54.6%), glass (23.8%), Plastics (10.4%), foods (6.2%), and papers (5.0%). These materials are found to be useful in two major areas of sales as source of income (78.2%), and for domestic purposes (21.8%). The ranges of income derived from scavenging in the area vary from below N2, 000.00 to above N20, 000.00 per month with N10, 001.00 - N20, 000.00 (39.2%) dominating other income levels. From these results, it is recommended that scavenging business should be encouraged by government and industrialist through the establishment of industrial activities that recycle and use recycled materials as input materials in the study area.

Thesis (PhD)--Stellenbosch University, 2013.
ENGLISH ABSTRACT: The 21st Century is witnessing the concurrence of neoliberal globalisation and widespread informalisation. To this extent, the informal sector or economy is perceived as a permanent ‘feature of modern capitalist development’ (Chen 2007: 2). Its expansion, particularly in developing countries, has far reaching implications for employment generation, occupational or livelihood diversification, urban form dynamics, urban planning, as well as the general economic outcome. The historical evolutionary truth of the informal origin of most businesses coupled with the reality of informal-formal sector continuum gives credence to the critical imperative of multi-path development regime that does not consider the informal sector as a dead end. Consequently, the research explored the policy implications of the spatial and structural relationships between the informal and formal business sectors in urban Nigeria. The study region is viewed from the prism of Enugu, the major administrative centre in the southeast region of the country. Here, spatial-structural causalities at the city level are conjectured as surrogates of the globalisation-induced transformations occurring in the country from 1990 to 2010 (Andranovich & Riposa 1993). The research sought to: one, examine the extent relationships between the distribution structures of two economic segments in the city; and two, explore the changes in inter-sectoral linkages and the urban business landscape mediated by the global-local economic changes. To guide the study, two research hypotheses were formulated, viz.: (1) to prove whether or not some significant spatial/structural relationships exist between the distribution of informal and formal business units in the study area; and (2) to verify if the observed changes in the spatial and structural relationships between the two segments are accounted for by the same sets of physical, economic, and socio-cultural variables. The study made use of primary and secondary data, which were collected via mixed research methods. The proportional stratified sampling was used where necessary. The primary data were collected through casual observation/recognisance, photographic and questionnaire surveys, and semi-structured personal interviews; while the secondary data were sourced from literature review, maps and databanks of local governments and Federal Inland Revenue Service (FIRS). The data analytical procedure involved data reduction and hypotheses testing. The former technique consists of sectoral aggregation (the segmentation by coherent attribute-sectors) and spatial aggregation (translation from quantitative into spatial dimensions) (Wang & Vom Hofe 2007), while the latter required the use of Spatial Statistics Analysis toolsets of the ArGIS software and the Principal Component Analysis (PCA) of the SPSS package. The Spatial Statistics Analysis (the Spatial Autocorrelation or Moran’s I index) and PCA results permitted the rejection of the two null hypotheses respectively. The Moran’s I index is 0.16 with a Z score of 159.78 at a significant level of .01 and critical value of 2.58, revealing a highly clustered spatial association (or dependence) between the informal and formal business distribution in the study area. Based on the eigenvalues of 10 selected variables, the PCA extracted three major determinants of the observed spatial-structural causalities, namely: socio-economic and cultural traits or business ethos, client base and market control, and physical environment/business transaction mode. The findings challenges the received model of Nigeria retail hierarchy, and among the key recommendations for guaranteeing stronger informal-formal sector linkages that are generative of sustainable endogenous development are: (i) the reinstatement of the import substitution programme; (ii) implementation of the innovative Cluster Concept of Industrial Development Strategy (CCIDS) of 2007; and (iii) adoption of urban planning standards that are pro-informal sector.
AFRIKAANSE OPSOMMING: In die 21ste eeubeleefonsgelyktydigneoliberaleglobalisasie en wydverspreideinformalisasie. Samelopendhiermee word die informelesektorvandieekonomiegesien as ’n “permanentekenmerk van die kapitalistieseontwikkeling.” (Chen 2007: 2). Die uitbreidingdaarvan, veral in ontwikkelendelande, het verreikendeimplikasies vir die skepping van werksgeleenthede, die diversifikasie van loopbaan- en broodwinnings-moontlikhede, stedelikevorms, stedelikebeplanning, asookalgemeneekonomieseuitkomstes. Die historieseevolusionêrewaarheidoor die oorsprong van die meestebesighede, tesame met die realiteit van die informelesektorkontinuum, verleengeloofwaardigheidaandie kritiesebelangrikheid van die multi-pad ontwikkelingraamwerkwaarbinne die informelesektorniegesien word as ’n doodloopstraatnie. Gevolglik het die navorser die beleidsimplikasies van die ruimtelike- en struktureleverhoudingtussen die informele en die formele sake-sektors in stedelikeNigeriëondersoek. Die studiegebied word besigtigvanuit die prisma van Enugu, die hoof administratiewesentrum van die suidelikestreek van Nigerië. Hier word ruimetelik-struktureleoorsaaklikhedegebruik as maatstawwe vir die transformasieswatdeurglobalisasieveroorsaak is, en wattussen 1990 en 2010 in die land plaasgvind het (Andranovich&Riposa 1993). Daar is in die navorsinggepoog om eerstens die omvang van verwantskappetussen die verspreidingstrukture van die twee ekonomiesesegmente van die stad vas te stel, en tweedens, om die veranderings in inter-sektorieseskakels en die stedelike sake landskapwatdeur die globaale-plaaslikeekonomieseveranderingsbemiddel is, te bestudeer. Twee navorsinghipoteses is geformaliseer, naamlik (1) om te bewys of daarbetekenisvolleruimtelike/struktureleverwantskappebestaantussen die verspreiding van informele en formeleeenhede in die studie- gebied, en (2) om te bevestig of die veranderings in die ruimtelike en struktureleverwantskappetussen die twee besigheidsegmentetoegeskryfkan word aandieselfdestelfisiese, ekonomiese en sosio-kultureleveranderlikes. In die studie is daargebruikgemaak van primêre en sekondêre data watdeurmiddel van gemengdenavorsingmetodesversamel is. Die proporsioneelgestratifiseerdesteekproefmetode is, waarnodig, gebruik. Die primêre data is deurterloopseobservasie, fotografiese- en vraelysopnames, en semi-gestruktureerde persoonlike onderhoudeversamel, terwyl die sekondêre data verkry is uit ’n oorsig van die letterkunde, landkaarte, en die databanke van plaaslikeowerhede en die binnelandsebelastingsdiens. (FIRS). Die data ontledingsproses het data reduksie en hipotesetoetsingingesluit. Dievorigetegniekbestaanuitsektorieseaggregasie (segmentasiedeursamehandeattribuutsektore) en ruimtelikeaggregasie (oorgesitvanafkwantitatiewenaruimtelikedimensies) (Wang & VomHofe 2007). Vir die laasgenoemde was dit nodig om Spatial Statistics Analysis gereedskapstel van die ArGISsagteware en die Principal Component Analysis (PCA) van die SPSS paket te gebruik. The Spatial Statistics Analysis (die Spatial Autocorrelation of Moran se I indeks) en die PCA resultatehet die verwerping van die twee nulhipotesesmoontlikgemaak. Moran se I indeks is 0.16 met ’n Z telling van 159.78 teen ’n betekenisvollevlak van .01 en ’n kritiesewaarde van 2.58, wat ’n hoogsgetrosderuimetlikeassosiasieaantoon, of dat die verspreiding van die informele en formelebesighede in die studiegebiednabymekaargeleë en afhanklik is van mekaar. Gegrond op die eigenwaardes van die 10 gekoseveranderlikes, is daardeur die PCA bepaalwat die drie hoof ruimtelik-strukturelekousaliteite is. Dit is sosio-ekonomiese en kulturelekenmerke, kliente basis en markbeheer, en fisieseomgewing/sake transaksie modus. Die bevindingeverskil van die ontvangdemodel van die Nigeriesehierargie. Om sterkerinformele-formeleskakelswatvolhoubareendogeneontwikkelingwaarborg, te genereer, word die volgendeaanbevelingsgemaak: (i) die invoerplaasvervangings-program moetingestel word, (ii) die Cluster Concept of Industrial Development Strategy (CCIDS) van 2007 moet implementer word; en (iii) stedelikebeplanningstandaardewat pro-informelesektor is, moet aanvaar word.

This study describes and analyzes the impact of Structural Adjustment Programmes (SAPs) on the Jos women in the informal sector, as well as the strategies women adopt to ensure the survival of their businesses and families. Studies that have investigated the impact of SAP on women in the informal sector tend to take a rather disparate approach. Against this background, the present study develops a coherent conceptual framework for understanding the impact of SAPs on women in the sector. From an interview survey conducted with one hundred and fifty (150) Jos women in the informal urban sector, the study elicited data on the activities of the women and the ways SAPs affect their access to productive and reproductive resources, as well as on the responses of the women to SAPs-engendered socio-economic hardships. The data reveal that the Jos women engage in numerous income-generating activities, mostly in small-scale, low-income circulatory and service activities which are largely marginalized and bereft of institutionalized resources. In addition to their productive and income-generating activities, the Jos women perform the bulk of the reproductive and domestic work necessary for the support of the family. As well, the women perform some extra-household work for the welfare of the community and environment. The study shows that the Jos women are adversely affected by SAPs. Structural Adjustment Programmes are further limiting their access to business commodities, credit, stalls, information and training, food, healthcare, education and transportation facilities. Consequently, women are finding it difficult to maintain their businesses and families. Amidst the adverse effects of SAPs, the women are resiliently and innovatively responding to SAPs through numerous business and familial survival strategies. In addition to the responses of the Jos women, the Nigerian State, is attempting to reduce poverty among women through its various women-centered programmes. The study attributes the adverse and limiting effects of SAPs on the Jos women's access to resources to a number of forces. These include (a) the Nigerian limited and discriminatory opportunity structures which predispose women to the largely marginalized informal activities, (b) the small-scale and low-income nature of women's informal activities, (c) the unequal and exploitative relationship between the informal and formal sectors in which women provide consumer goods at low-cost for the regeneration of capitalist labour, (d) the circulatory and service nature of women's informal activities, (e) the gender- and class-biased structures inherent in SAPs, as well as in SAPs' implementing mechanisms and institutions and (f) women's altruistic and selfless attitudes. The study observes that the responses of both the Jos women and the Nigerian State to SAPs-engendered hardships are, at best, palliative or even cosmetic. The responses do not address the strategic needs of women. Hence the study makes a case for a transformatory strategy through the empowerment of women.

This thesis examines the development of the micro-insurance sector in less developed countries, using the theoretical approach of new institutional economics. The main research questions are whether it is the insufficient compatibility between formal and informal institutions that hinders the development of micro-insurance below what had been widely predicted by the academic community? And what has to be done institutionally to make this industry an active contributor to economic growth? To investigate these questions, three distinct empirical studies, of which one is based on field work data generated for the thesis specifically, were carried out using a Probit model, a system of Generalized Method of Movements model, and a Vector Error Correction model. The hypotheses tests suggest that (i) the relevant informal institutions have a significant influence on the decision of individuals to enrol into micro-insurance product in Nigeria; (ii) by controlling for institutional quality, a positive development of the institution of micro-insurance contributes to reducing the size of the informal economy in Nigeria and other less developed countries); and (iii) that micro-insurance has both short and long term positive impacts on the economic growth in Nigeria.:Table of contents Versicherungen 2 Table of contents 3 List of tables 8 List of figures 9 list of Appendices 11 List of Abbreviations 12 Acknowledgement 15 Abstract 17 Chapter 1 19 1. Overview of the study 19 1.1 Introduction 19 1.2 Aims and objectives 23 1.3 Structure of the Thesis 23 1.4 reference 26 Chapter 2 29 2. Theories and concepts of (micro) insurance 29 2.1 The poor and risk 29 2.2 The theoretical framework of insurance 36 2.3 The meaning of micro-insurance 40 2.4 The two faces of micro-insurance 42 2.5 Micro-insurance and traditional insurance 44 2.6 Demand and supply of micro-insurance 48 2.7 Micro-insurance supply chain 53 2.8 Reference 59 Chapter 3 65 3. New institutional economy 65 3.1 Introduction 65 3.2 Institution 65 3.3 Institution and organization 67 3.4 Neoclassical Approach 68 3.5 Institutional economic approach 70 3.6 New institutional economics 72 3.6.1 Property right 73 3.6.2 Transaction costs 76 3.6.3 Agency theory 78 3.7 New institutional economics and insurance 79 3.8 Conclusion 84 3.9 Reference 86 Chapter 4 90 4. Methodology 90 4.1 Introduction 90 4.3 Mixed-research strategy 92 4.3.1 Qualitative research 92 4.3.2 Quantitative research 93 4.4 The research method 95 4.4.1 Data collection 96 4.4.2 The sampling framework 96 4.4.3 Sample size and sampling technique 97 4.4.4 Questionnaire design 98 4.5 Instrument validity and reliability 98 4.5.1 Pre-testing of the instruments 100 4.6 Analytical approaches 100 4.7 Reference 102 Chapter 5 105 5. Nigeria and the development of micro-insurance industry 105 5.1 Introduction 105 5.2 Broad country context 106 5.3 Insurance Sector 109 5.4 Segments of the Nigerian insurance industry 110 5.4.1 Non-life insurance 112 5.5 Regulatory Landscape 115 5.5.1 Market development and restructuring initiative (MDRI): 117 5.6 Nigerian Insurance industry vs Global peers 118 5.7 Problems of the insurance industry in Nigeria 120 5.8 Micro-insurance in Nigeria 123 5.9 Reason to be optimistic 125 5.10 Distribution Channel of Micro-Insurance 127 5.11 Conclusion 129 5.12 Reference 130 Chapter 6 133 6. The effect of Societal norms on the likelihood of individuals to enrol in different forms of Micro-insurance products 133 6.1 Introduction 133 6.2 Institution, Values and Norms 134 6.3 Methods and variables 137 6.3.1 Dependent Variable: Micro-insurance enrolment 137 6.3.2 Independent variables 138 6.4 Justification for control variables 144 6.4.1 Formal institutional variables 144 6.4.2. Personal Characteristics 145 6.5 Model estimation 149 6.6 Result, analysis and discussion of findings 151 6.6.1 Presentation of the result 151 6.6.2 Analysis of the impact of values and norms 152 6.6.3 Analysis of the impact of formal institutions 156 6.6.4 Analysis of the impact of personal characteristics 158 6.7 Robustness of the Result 161 6.8 Conclusion 162 6.9 Reference 164 6.10 Appendix 171 Chapter 7 179 7. The Role of Institutions in the relationship between micro-insurance development and Size of the Informal economy in Sub-Saharan Africa 179 7.1 Introduction 179 7.2 A theoretical review of Informal economy 183 7.3 Theoretical and conceptual review 186 7.4 Data 186 7.5 Descriptive statistics 194 7.6 Model specification and estimation strategy 197 7.7 Empirical Results 200 7.8 Estimation and interpretation of system GMM 202 7.9 Robustness Checks 205 7.10 Conclusion 207 7.11 Reference 208 7.12 Appendix 213 Chapter 8 221 8. How does micro-insurance impact the economic growth of Nigeria? 221 8.1 Introduction 221 8.2 The conceptual and theoretical framework 224 8.3 Literature review 225 8.4 Theoretical model and empirical analysis 228 8.5 Empirical result and findings 229 8.5.1 Descriptive statistics 229 8.5.2 Stationarity test 230 8.5.3 Co-integration test 233 8.5.4 Vector error correction model (VECM) 235 8.6 Diagnostic test on VEC Model (robustness of the model) 237 8.7 Conclusion and recommendation 238 8.8 Reference 241 8.9 Appendix 246 Chapter 9 250 9. The conclusion and policy recommendations 250 9.1 Introduction 250 9.2 Summary of the study 250 9.3 Research conclusions and implications 252 9.4 Contributions of the research 254 9.5 Research limitations 256 9.6 Direction for future research 257 9.7 reference 259