However, the study failed to incorporate some critical variables that drive informality in Nigeria, resulting in the estimation of skewed trends for Nigeria. In October 2015, the Federal Ministry of Labour and Productivity reported that the informal sector in Nigeria contributes about 60 percent of the country’s Gross Domestic Product (GDP) and employs about 90 percent of the nation’s workforce. Specifically, the objective of the study is to examine the size, development, and causes of the informal sector of the Nigerian economy. The volume of this sub-component of the informal economy can be now estimated in terms of jobs: the question is then to know what value added can be imputed to these jobs. Workers in the informal sector earn less income, have unstable income, and do not have access to basic protections and services (3). It is comparable in size to Venezuela, and is about twice the size of the U.S. state of California. Aug 9, 2017 Business News Report. In support of the statistical data on the size of informal economy in 110 developing, transition and OECD countries in the world, Nigeria is listed as occupying the 8th position with 57.9% informal sector population, Cameroon listed as number 58 with 32.8%, while South Africa is listed as number 66 with 28.4% informal sector Results suggest that informal economy in Sub-Saharan Africa remains among the largest in the world, although this share has been very gradually declining. ... size of informal se ctor. Sub-Saharan Africa, Please address any questions about this title to publications@imf.org. These Distinguin, Rugemintwari, and Tacneng (2016) showed that it is almost impossible for an economy to achieve long term growth if the bulk of its economic activities are performed outside the regulatory purview (monetary and fiscal policies) and taxation regime. Measuring informality: a statistical manual on the informal sector and informal employment; Women and men in the informal economy: a statistical picture (3rd edition) This publication provides for the 1st time comparable estimates on the size of the informal economy & a statistical profile of informality in all its diversity at the global and regional levels. The Informal Sector in Nigeria: From Neglect to Recognition. The federal government and other stakeholders must roll out measures to provide temporary support to the informal sector. It says the informal sector contributed between 25% and 65% of GDP with Mauritius and South Africa at the low-end under 25% and Tanzania (over 50%) and Nigeria (over 60%) at the other end. Within the region, however, there is significant variation in the size of informal economies. It said Within sub Sahara Africa, there is significant variation in the size of informal economies. THE EFFECT OF FISCAL POLICY ON THE SIZE OF THE INFORMAL SECTOR IN NIGERIA Nigeria’s informal sector is also the employer of the largest number of citizens. It said Within sub Sahara Africa, there is significant variation in the size of informal economies. This report is confirmation that the nation’s informal sector remain a critical part of the economy thus showing the enormity of … The sheer size of the sector makes it practically difficult to ascertain the actual membership and activities of the sector. Informal sector Section 3 discusses the MIMIC Model estimation procedure and justification for the variables included, while section 4 discusses the result of the findings. This study, therefore, seeks to address these two issues and verify the findings of Hassan and Schneider for Nigeria. The informal sector in Nigeria covers a wide range of activities. 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