Government Assistance for Informal Sector Enterprises in Nigeria: A Case Study of Tire Repair Services in Illorin, Kwara State

Abstract

The informal sector has remained crucial to the Nigerian economy over the years in terms of employment and income generation for the teeming urban semi-skilled and unskilled labour. Over the years in Nigeria, there has been growing concern about the problems and expectations of the informal sector in spite of the support services floated by the government. This study therefore examines the level of government support received by tire repair operators; their problems and expectations. The study involved the use of primary data collected through a structured questionnaire, which was personally administered. It found that government support in terms of finance and training was limited to 'take off' and had little or no provision for already existing operators, who required some support for expansion and modernization. The study also found that the major problems militating against tire repair service are fuel scarcity, spare part problem, lack of access to credit and multiple taxes. Based on the findings above, there is the need to refocus government informal sector support instruments through improved funding. The government should also address the energy problem and eliminate multiple taxes which are inimical to the growth and development of the informal sector.

Factors and remedies for productivity and efficiency among small‐scale informal enterprises: A theoretical perspective

“…Structuralists generally subscribe to the view that the major drawbacks for informal firms are identified within the larger socio-economic structure, such as poor infrastructural development, lack of government support, and external economies (Ghose 2017;Taymaz 2009;Tobin 1994). In Potter and Watts' (2014) opinion, this can be helped through a clustering of informal enterprises, which attracts government's investment in external economies (Arosanyin et al 2009;Ghose 2017), and the pooling of resources by cluster members (Porter 2000;Pessoa 2010Pessoa , 2011 to build shared infrastructure enjoyed for the cluster's members. They, however, pose a pertinent question regarding whether clustering of informal enterprises can be a basis for a governance structure, which regulates the informal enterprises through associations and network relations.…”

“…In Potter and Watts’ (2014) opinion, this can be helped through a clustering of informal enterprises, which attracts government's investment in external economies (Arosanyin et al. 2009; Ghose 2017), and the pooling of resources by cluster members (Porter 2000; Pessoa 2010, 2011) to build shared infrastructure enjoyed for the cluster's members. They, however, pose a pertinent question regarding whether clustering of informal enterprises can be a basis for a governance structure, which regulates the informal enterprises through associations and network relations.…”

Taxing the informal sector through presumptive taxes in Zimbabwe: An avenue for a broadened tax base, stifling of the informal sector activities or both

“…There is a great potential to grow the contribution of the informal sector to revenue mobilisation and economic growth if necessary institutional support is availed to them to foster their productive capacity (Bruhn and Loeprick, 2014;Bruhn and McKenzie, 2014). An enhanced tax base can only become a reality when governments start supporting the productive capabilities of IS activities through innovative formalisation activities that also address the growth constraints faced by the sector (Arosanyin et al, 2009;Gerxhani, 2004). It is argued that Governments of developing countries only want to tax this sector and not invest first in it in order to boost its productivity and profitability and then tax later.…”

Cluster initiative management: A potential for African women entrepreneurs in the informal sector

“…Market information can be viewed as a prerequisite for achieving the Sustainable Development Goals (Eyben et al., 2008; Golla et al., 2011). What is needed to assist women in CIM, is support from government through credit policies and strategies, management assistance and technical training strategies in fulfilling sustainable development targets, suggests Arosanyin et al. (2009: 68).…”