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.

KEY WORDS: Informal sector; Government Assistance; Micro-Enterprise, Business Development; Multiple Taxing.