Workable policies for Nigerian economy’s informal structure – Part 2

Public Private Partnerships (PPPs): Encourage a collaboration of educational institutions, non-governmental organisations (NGOs) and private sector enterprises to deliver programmes. Combine the strengths of the different stakeholders for maximum impact.

Lifelong learning: Incentivise facilities to have in house opportunity for adults to attend workshops, seminars and take on-line courses and be given certification and accreditation. For those who want to further their knowledge, incentives should be given to the employer.

Social Protection Programmes
Health insurance: Promote affordable health insurance schemes, starting with the informal sector. Establish partnerships with the private insurers and the community health organisations.

Pension Plans: Set up pension programmes for the informal workforce. Design flexible contribution schemes so that informal workers can save for retirement.
Unemployment benefit schemes: establish unemployment schemes to support informal workers in times of economic downturn; make the schemes as broad-based as possible.

Market access initiatives
Organising local markets, trade fairs and exhibitions. Order informal businesses to display their goods and services at local markets, trade fairs and expos. Connect businesses and build networks with potential purchasers and collaborators.

E-commerce platforms: Build e-commerce platforms that work for informal sector entrepreneurs. Train them in digital marketing, sales online and logistics, among other ways, to present sellable goods on online platforms.

Export promotion: Support informal economy businesses to access export markets via export support, market intelligence and trade facilitation services.

Legal support services
Legal aid centres: Set up legal aid centres in neighbourhoods and at workplaces, staffed by qualified lawyers, to ensure access to affordable legal services for legal questions regarding workplace conditions or contract disputes. The legal aid centres could offer workers and businesses services such as drafting contracts, mediation or arbitration of disputes, avenues for grievances relating to regulatory compliance, etc.

Advocacy groups: Establish advocacy groups that can represent the interests of the informal sector in policy making and negotiations. Formalise workers’ interests and voice.

Public legal education: Launch public legal education campaigns to educate citizens about their legal rights and obligations, including employment laws, regulatory standards for businesses and consumers, and the responsibilities of the government.

Comprehensive data collection
Conduct regular surveys and studies: Regularly survey and study the informal sector – compile data on employment, income, business operations and challenges, among others. Policymaking: Use this information for policymaking.

Data sharing platforms: Set up data-sharing platforms, where researchers, policymakers and stakeholders can access information on the informal sector. Utilise open-data platforms to maximise transparency.

Impact assessment: Create mechanisms to measure the impact of policy interventions towards the informal sector. Continuously monitor and evaluate programmes and make in-flight coursecorrections where data analytics indicate.

Public awareness and engagement
Raise awareness: Augment public awareness campaigns through the media, outreach campaigns and educational programmes that highlight the informal sector and its contribution to the economy and the structural challenges it faces.

Community encouragement: encourage community initiatives to assist informal businesses; for example, local trade fairs and community markets can be organised as a platform for informal entrepreneurs to display their assortment of merchandise.

Multi-stakeholder collaboration
Federal, state and local: Partner across different levels of government because the informal sector tends to be unevenly distributed across geography, and local informal economies have differing needs. Coordinated informal sector policies promote intergovernmental cooperation.

Engage the private sector: Involve the private sector in supporting the informal sector through CSR initiatives, including mentoring programmes and investment in community development projects.

NGOs and IOs: Co-opt the expertise and resources of non-governmental organisations and international bodies to carry out capacity-building measures, technical assistance and knowledge exchange.

Conclusion
The informal sector is ubiquitous in Nigeria. It constitutes nearly 60 per cent of the economy. It provides over 60 per cent of the nation’s employment. It also generates more than 80 percent of the quintessentially life-essential services such as housing, transport, water, power, food, clothing and personal care, among others.

The potential of the informal sector is enormous but is being choked by many bottlenecks. Crafting proper, workable and sustainable policies towards supporting the sector and giving it remains crucial to moving Nigeria’s economy onto the path of sustainable growth and higher standards of living.

The way ahead: If implemented, these recommendations will foster an enabling environment for informal businesses to thrive and boost economic growth and living standards. To harness the informal sector’s potential, policymakers should place it front and centre of national development strategies, including in their policies, programmes and projects.

They can begin by strengthening mechanisms that foster economic growth and improve the well-being of their poor citizens. They should complement this effort by shifting towards more equitable and sustainable development policies and strategies.

The informal sector is the backbone of Nigeria’s economy; therefore, its development will not only move the economic structure of the country but also enhance the pursuit of economic development and improve the life of millions of Nigerians as well.
Concluded.
Dr Oluwadele is an Author, Chartered Accountant and Public Policy Scholar based in Canada. He can be reached via: [email protected]