While the Nigerian informal sector is more nuanced than imagined, as highlighted by its taxation, there are still some elements of the sector that are as expected.
One such element is the predominant age demographic of this sector. An informal sector for any country typically results from the country’s inability to bolster its formal sector. People who cannot find regular employment or orthodox jobs, eventually get creative, proffering solutions where they encounter problems, and this innovation is frequently associated with youth.
In Nigeria where there is a high rate of unemployment, the informal sector plays a crucial role in ensuring that the country remains economically active, and no age group more so, takes advantage of this sector than the youth demographic.
While unemployment is the most prevalent reason for starting an informal business, it is important to note that other factors contribute to the growth of the informal sector including job dissatisfaction, a passion for business, and the inheritance of an informal outfit.
Needless to say, the youths encompass a young population looking for a way to get ahead in life, and as such they make up a significant portion of the country’s workforce be it in the formal or informal sector.
The Informal Economy report by Moniepoint highlights this point, stating that in “Sub-Saharan Africa, a significant portion (85%) of employment is informal and generally young. Our data shows that almost 58% of Nigeria’s informal workforce is below 34 years old. The largest group, making up 43%, is between 25 and 34. The second largest group of young people, 35 to 44-year-olds, represent 28.9% of the sector in Nigeria.”
The report also adds: “This youthful energy offers a tremendous opportunity for socio-economic transformation through innovation, entrepreneurship, job and wealth creation.”
With that said, here are the top 5 age demographics that makeup Nigeria’s informal sector according to Moniepoint’s report.
Top 5 age demographics that make up Nigeria’s informal sector
Rank
Age group
% of informal sector
1.
18-24
14.4%
2.
25-34
43.1%
3.
35-44
28.9%
4.
45-54
10.1%
5.
55-64
2.8%
Also, those under the retirement age (65 and above) constitute 0.7% of the informal sector.
Source link : https://africa.businessinsider.com/local/markets/top-5-age-demographics-that-make-up-nigerias-informal-sector/0dxw15x
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Publish date : 2024-07-10 17:00:39
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