80.4% of Nigerian Employment in Informal Sector – World Bank
The World Bank has stated that 80.4 per cent of Nigeria’s employments are in the informal sector.
The bank said the predominance of informal employment would likely lead to a slow recovery from COVID-19 in developing economies.
It stated these in a new report titled ‘Long shadow of informality, challenges and policies’.
The report said the informal economy accounted for one-third of the national GDP in an advanced economy and more than two-thirds of employment in developing and emerging economies.
The World Bank Group study found that a strikingly large percentage of workers and firms operated outside the line of sight of governments in emerging markets and developing economies (EMDEs) – a challenge that is likely to hold back the recovery in these economies unless governments adopted a comprehensive set of policies to address the drawbacks of the informal sector.
The report stated that 80.4 per cent of Nigeria employments were in the informal sector, 10 per cent in the formal sector and 9.6 per cent in households. A total of 78.8 per cent of men were in the informal sector; 12.9 per cent of men were in the formal sector and 8.3 per cent in households.
The report said 82.1 per cent of women in Nigeria were in the informal sector; 6.9 per cent in the formal sector while 11 per cent were in households.
The informal sector includes casual day labourers, domestic workers, industrial outworkers, undeclared workers, and part-time or temporary workers without secure contracts, worker benefits or social protection.
