The Informal Sector As a Catalyst for Employment Generation in Lagos State, Nigeria

AFRICAN AND ASIAN STUDIES African and Asian Studies 11 (2012) 315-344 brill.com/aas

The Informal Sector as a Catalyst for Employment Generation in Lagos State, Nigeria

Akeem Ayofe Akinwale* Department of Industrial Relations and Personnel Management, Faculty of Business Administration, University of Lagos Akoka, Yaba, Lagos State, Nigeria Email: [email protected]

Abstract Unemployment remains high in Nigeria due to disintegration between the formal and informal sectors, among other factors. While the unemployed largely focus on the formal sector in search of jobs, there is inadequate interest in the informal sector. Yet, this sector provides livelihoods for the majority of the population. This paper examines the informal sector as a catalyst for generat- ing employment in Lagos State, Nigeria, using the Social Capital Theory and a descriptive survey research design. Data were collected from 480 apprentices, 40 masters, 20 journeymen, and 120 members of various communities through a structured questionnaire, Key Informant Interviews and Focus Group Discussions, respectively. The findings showed that 64.8 percent of the respondents reported parental sponsorship of vocations in the informal sector, 14.2 percent of the respondents were self-sponsored, and the remainders (18.5 percent and 2.5 percent) were report- edly sponsored by their relatives and masters. Awareness of opportunities for self employment in the informal sector was demonstrated by 71 percent of the respondents. However, 66.3 percent of the respondents thought that schooling could be better than vocations in the informal sector. Mothers’ occupation significantly associated with individuals’ choice of vocation in the informal sector (χ2 = 33.71; P < 0.05). There was no significant difference in the proposed plans for self employment among the respondents in furniture and tailoring workshops (χ2 = 1.44; P > 0.05). Planning for self employment was significantly influenced by several factors including gender, age, mothers’ occupation, career plan, and satisfaction within the informal sector (t = 19.247, P < 0.01). The informal sector is vital for survival of youth in Lagos State, Nigeria. This sector should be supported for poverty eradication and entrepreneurial development.

Keywords Development, economy, informality, self-employment, social capital

* Many thanks to the reviewers of the paper for their invaluable comments. Special thanks to Professor Tukumbi Lumumba-Kasongo for his encouragement.

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Introduction The informal sector provides alternative avenues for employment opportunities compared to the formal sector, particularly the state owned enterprises (SOEs) and the organised private sector (OPS). It has been reported that the majority of the global population ekes out their livings from the informal sector (Chukuezi, 2010; Horn, 2010; ILO, 2010; Porta and Shleifa, 2008; Meagher, 2007; Kohnert, 2006). The growth of the informal sector is due to several factors including low level of education, declining employment opportunities in the formal sector and lack of relevant skills (Horn, 2010; Meagher, 2007; Portes and Hoffman, 2003). In spite of the fact that many studies have been conducted on the informal sector in developing countries, Temkin (2009:141) observed that “so little is known about the informal workers individual perceptions, values, attitudes, and opinions.” Walsh (2010) linked the relatively inadequate knowledge about the informal sector to the fact that it is hidden from official scrutiny. Chukuezi (2010) recently called for further studies on the informal sector in recognizing the need for continued support for the sector. Previous research by Arimah (2001: 119) indicated that “any study that seeks to analyse the informal sector must depend on primary sources of data, since activities in this sector are hardly entered into official records.” Thus, this paper examines the high incidence of unemployment in Nigeria and the potential of the informal sector as a critical resource for employment generation. I specifically focus on the following questions: Why do people identify with or disentangle from the informal sector? What are the prospects and challenges associated with employment generation in the informal sector? Can the informal sector be used to eradicate unemployment in Nigeria, and if so, how? An investigation into the above questions is grounded in social capital theory and survey research, involving structured interviews and focus group discussions with selected study participants from furniture and tailoring workshops in Lagos State, Nigeria. Economic downturns and inadequate opportunities for upward social mobility have been driving people’s participation in the Nigeria’s informal sector since the 1980s. Also, some privileged individuals, including those from formal sector and middle-class commercial backgrounds, have resorted to the informal sector to prevent economic predicaments (Chukuezi, 2010; Meagher, 2007). Unemployment, however, remains high in Nigeria despite the relevance of the informal sector in employment generation. The 2006 survey by the Federal Ministry of Education showed that over 60 percent of the Nigerian youth were unemployed (Babalola, 2007). This can be

Downloaded from Brill.com10/04/2021 08:40:23AM via free access A. A. Akinwale / African and Asian Studies 11 (2012) 315-344 317 attributed to the fact that entrepreneurs in the informal sector have not been adequately recognised and received support in Nigeria despite their actual and potential capacity for employment generation. There is indication that lack of recognition and optimum utilisation of the informal sector potentials can con- tribute to raise the level of unemployment and poverty. It has been shown that most Nigerians prefer employment in the formal sector, hence the popularity of white collar jobs (Akinbogun and Ogunduyile, 2009). Unemployment remains high in Nigeria, despite implementations of several national entrepreneurial programmes, including the National Directorate of Employment (NDE) and the National Economic Empowerment and Develop- ment Strategies (NEEDS). Although the NDE and the NEEDS were designed to promote socio-economic development, their operations have not matched the rising demands for employment opportunities in Nigeria (Chukuezi, 2010; Kolawole and Adepoju, 2007). Repeatedly, widespread unemployment, abject poverty and lack of social security have attracted concerns in Nigeria (NISER, 2003). This situation has become worrisome since the advent of accelerated globalisation and the adop- tion of neoliberal reforms, especially the Structural Adjustment Programme (SAP), followed by privatisation and deregulation of the State Owned Enter- prises (SOEs) in Nigeria. Against the above backdrop, this paper examines the informal sector as a catalyst for employment generation in Lagos State, Nigeria. As shown in different sections, the paper dwells on several issues associated with employment and the informal sector with reference to situations in Nigeria and elsewhere. The next section presents an overview of the Nigerian economy in an attempt to build a foundation for an analysis of the informal sector. This is followed by the discourse on employment generation in Nigeria and the concept of the informal sector. Theoretical framework and methodology are also discussed to enrich the paper. Then, the final sections of the paper focus on descriptive pre- sentation and analysis of the findings.

An Overview of the Nigerian Economy With an area of 923,768 square kilometers, Nigeria officially emerged as a contemporary state in 1914, sharing boundaries with four countries (Benin, Camer- oon, Chad and Niger). It emerged from the amalgamation of southern and northern protectorates, comprising diverse groups with various economic activities such as agriculture, pastoralism, fishing, trading, crafts, and medi- cine. Nigeria’s population rose to over 140 million in 2006 (Falola and Genova,

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2009). The Nigerian traditional economy has been modified from hitherto reliance on agriculture and import substitution industrialisation to over dependence on crude oil since the 1970s (Chukuezi, 2010). The Nigerian government used the revenue derived from exports of agricultural products to finance its import-substitution industrialisation policy, which led to establishing many light industries such as food processing, textiles and fabrication of metal and plastic wares (Foucard, 2003). The contribution of agriculture to the Gross Domestic Product (GDP) fell from 60 percent in the 1960s to 31 percent in the early 1980s, due to official neglect and new policy choices. The main thrust of the Nigerian national development plans in the 1970s was on education, transport, water supply and urban infrastructure on the one hand and rapid industrialisation on the other. Thus, real economic activities have increased in non-agricultural sectors since the 1970s, thereby weakening the Nigeria’s traditional economy (Olani- yan, 2009). This provides a basis for relegating the informal sector in Nigeria, especially in the light of imposing a modern capitalist structure, which has pro- moted unemployment with increasing dependence on wage earning to meet human needs. This situation was not an original condition in Nigeria, considering an illustration provided by Akinwale (2009: 276) as follows:

Within the context of effective kinship structure, cases of poverty, unemployment and crime were relatively low. However, with the advent of Westernisation, traditional structures that kept people together were weakened.

The above illustration has yielded harrowing experience for a number of Nige- rians in their struggle for survival. Several Nigerians were evicted from Ghana in 1969 as a result its downturns (Campbell, 2007). The evicted Nigerians and some Ghanaians arrived in Nigeria during the 1970s when the demand for skilled workers exceeded the supply, due to an oil boom and economic pros- perity. That period was followed by economic recession and accumulating debts in the 1980s (Foucard, 2003). Consequently, the extent of foreign interests in the control of the Nigerian economy became unprecedented, especially with visibility of multinational corporations (MNCs) in various sectors including oil industry, construction, manufacturing, telecommunication and conglomerates. With the visibility of the MNCs and the organised private sector (OPS), the demarcation of the formal and informal sectors became heightened. Globalisation has accentuated such division, through officially adopting neoliberal reforms, including SAP as well as privatizing and deregulating SOEs, thereby expanding the scope of economic activities outside the informal sector in Nigeria. This situation has

Downloaded from Brill.com10/04/2021 08:40:23AM via free access A. A. Akinwale / African and Asian Studies 11 (2012) 315-344 319 worsened the crises in the Nigerian formal and informal economy. While the traditional economic system has been neglected by the state, the modern economic system is replete with crises, principally due to political instability and corruption. The Nigerian economy was largely controlled by the British Colonial Gov- ernment for over 60 years before the country attained political independence in 1960. After this, Nigeria experienced 30 years of military rule and 21 years of civilian administration in its 52 years of independence (1960-2012) without ability to efficiently manage its economic success. For instance, Guseh and Oritsejafor (2007: 140) argued that:

The attainment of political independence does not seem to have transformed the state because the indigenous elites that replaced the colonial administrators have failed to implement policies to move the country forward politically and economically [. . .] Many people became interested in the state, not because it was useful for the general- ity of the society but because it could be exploited for personal and material gains.

In light of the foregoing, Nigeria has experienced mixed economic perfor- mance, ranging from an unprecedented boom until the early 1970s to economic crisis since the 1980s. The oil sector has been contributing over 95 percent to export revenues since the 1990s, although Nigeria has remained underdevel- oped (Guseh and Oritsejafor, 2007). Unfortunately, Nigeria is still ranked among the world’s 30 least developed countries, despite its rich endowment with natural and human resources (UNDP, 2008). An estimated 70 percent of Nigerians lived below the poverty line in 2008, compared with 42.8 percent in 1992, 43.6 percent in 1985 and 27.2 percent in 1980 (The Central Intelligence Agency, 2008). The background of poor socio-economic development has been linked to the low status of Nigerian youth, who battle daily with socio-cultural barriers, discrimination, and economically unfriendly political and legal structures (Aina, 2007). It is noteworthy that the Nigerian economy has deteriorated and, as a result of this situation, a large proportion of the Nigerian population con- fronts unemployment, thereby indicating the need to focus on opportunities for employment generation in the informal sector of the Nigerian economy.

Employment Generation in Nigeria Employment generation is possible in Nigeria through the formal and informal sectors. The formal sector is subdivided into the public sector and the organised private sector (OPS), while the informal sector comprises different private

Downloaded from Brill.com10/04/2021 08:40:23AM via free access 320 A. A. Akinwale / African and Asian Studies 11 (2012) 315-344 organisations such as micro enterprises, small-scale enterprises (SSEs), and medium-scale enterprises (MSEs). While the public sector covers all para- statals; the OPS consists of multinational corporations, conglomerates and reg- istered small and medium scale enterprises (SMEs). Nevertheless, distinction between employment in the formal and informal sectors is blurry in Nigeria. Some organisations are perceived as formal by virtue of their registration, even if they employ few workers, whereas some organisations remain informal as long as they are not recognised by the government (Onugu, 2005). Studies have shown that the largest proportion of employment generation in Nigeria occurs in the informal sector (Chukuezi, 2010; Kayode-Ajayi, Adeniji and Adu, 2008). Nigeria’s experience is similar to situations in several countries. As shown by the ILO (2010), the 2009 informal employment comprised more than half of all employment in Latin America, more than 70 percent of all employment in sub-Saharan Africa and 65 percent of employment in Asia. Also, the contribution of the informal sector to gross domestic product (GDP) is around 30 percent for Asia and Latin America and more than 40 percent for sub-Saharan Africa (International Labour Organization, 2002). Conversely, the rate of unemployment has become higher in the Nigeria’s formal sector as indicated in the following passage:

With over eighty universities in Nigeria today and an average of one hundred and sixty thousand graduates each year, the country is now bedeviled with severe graduate unemployment, since there seems to be a mismatch between graduate training and the world of work. [. . .] these jobless graduates have become very desperate and willing to do anything including armed robbery in order to survive. (Kayode-Ajayi et al., 2008: 77)

Nigeria’s unemployment rate moved from 4.3 percent in 1985 to 5.3 percent in 1986 and 7 percent in 1987 before it jumped to 10.8 percent in 2003 (Kayode- Ajayi et al., 2008). The unemployment rate is usually higher in urban areas than in rural areas. Similarly, the rate of unemployment is more severe among persons with a relatively low level of education. Kayode-Ajayi et al. (2008) showed that workers with more than secondary education experienced significantly higher labor market success than those with secondary education or less. How- ever, graduates have been competing for jobs meant for applicants with secondary school certificates, given the severity of unemployment in Nigeria. The weakness of the Nigerian economy has adversely affected employment generation in the formal and informal sectors. Nigeria has not recovered from the collapse of its economic boom, which was recorded in the 1970s when the massive injection of money into the construction of urban utilities and infrastructure attracted a flow of migrants to Lagos and other major cities in Nigeria

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(Chukuezi, 2010). That period was followed by economic crises, which led to introduction of economic policies such as the Economic Stabilisation Act (ESA) in 1982, the Structural Adjustment Programme (SAP) in 1986, the National Directorate of Employment (NDE) in 1986 and the National Economic Empowerment and Development Strategy (NEEDS) in 2004. The above- mentioned policies yielded inadequate contributions to employment generation, as shown herewith:

After five years operation, the NDE reported that more than 1.5 million jobs have been created nation-wide. [. . .] the impact of NEEDS is yet to be felt, in combating unemployment problem and this further points to the need to seek help in the informal sector drastically to reduce unemployment. (Chukuezi, 2010: 135)

The projections that the NEEDS will result in creating seven million jobs, diversifying the economy, increasing industrial capacity utilisation, and improving agricultural productivity have not been fully achieved (Chukuezi, 2010). Also, attempts to promote employment generation through several development plans (1960-1985) have failed. The informal sector still dominates the industrial landscape in Nigeria, although a few big companies have emerged around industrial areas in the country. People are driven into the informal sector due to its potentials for employment generation. This situation requires further empirical investigation.

The Concept of the Informal Sector The informal sector has been described as all activities that public authorities do not recognise, protect or regulate (Hussmans, 2004). It includes the organisations owned and managed by an individual or a group. It has gained international recognition since the 1970s. This sector is visible in all countries but there is no universal consensus on its definition. Various definitions of the informal sector have been summarised, as follows:

Informal employment refers to many different types of workers and activities, ranging from marginal self-employed own-account workers, to well-off entrepreneurs who employ others without a contract or without paying taxes or social contributions, and from informal employees of informal or formal firms to contributing family workers. ( Jütting, Parlevliet and Xenogiani, 2008: 29)

The first known scholarly study on the informal sector was conducted in Kumasi, Ghana, by Keith Hart, who presented the study at an international conference in Sussex in 1971 (Chukuezi, 2010; Potts, 2008; Khotkina, 2007).

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Further interest in the study of the informal sector has been demonstrated since the 1970s, following the ILO’s study of the informal sector in Kenya. The study was described by Emmerij (2005: 92):

The bulk of employment in the informal sector is economically efficient and profitable, though small in scale and limited by simple technologies, sparse capital, and a lack of linkages to the modern, formal sector of the economy. Within the informal sector, we find a variety of carpenters, masons, tailors, and other tradesmen.

An earlier official description of informal sector as economic activities which are carried out outside the institutionalised economic structures was recorded in paragraph 27 of the ILO Employment Policy Recommendation 169 of 1984 (Daza, 2005). The current debates and policy pronouncements in South Africa have portrayed it as the “second economy” (Potts, 2008; Kraak, 2005). The United Nations system of national account recognized the informal sector in 1993. The need to promote the informal sector was emphasized and adopted in 2002 at the 90th Conference of the ILO, yielding a resolution on Decent Work and the Informal Economy (Khotkina, 2007). The concept of the informal sector was modified and christened “the informal economy” during the ILO Reso- lution in 2002 when it was described as all economic activities not covered or insufficiently covered by formal arrangements. A number of characteristics of the informal sector were recognized by scholars as follows: ease of entry, reliance on indigenous resources, family owner- ship of enterprises, small-scale operations, labor-intensive and adapted technology, skills acquisition outside the formal school system, low wages, lon- ger working hours, and unregulated competitive markets (Williams, 2009; Jütting, Parlevliet and Xenogiani, 2008; Emmerij, 2005). In the discourse on the informal sector, considerable attention was given to the need for social protection and poverty reduction (Chen, 2008). Interest in the informal economy has been renewed worldwide, indicating recognition of its contributions to development. Its persistence is driven by a number of factors including unemployment, poverty and migration. Khotkina (2007: 45) reported that “unemployment and impoverishment set in motion a massive transfer of population into the informal economy.” The poverty hypothesis was, however, debunked in light of the fact that:

The people who created the Soviet shadow economy were not poor; they had permanent jobs and possessed not only entrepreneurial talent but also the material and social resources to realize it. [. . .] The purposes of the Soviet shadow economy were connected unequivocally with enrichment, and not with survival. (Khotkina, 2007: 46)

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Chen (2008) observed lack of social security among half of the world population, especially the labour force in the informal sector. Lack of a safety net was specifically recognized among nine out of ten workers in least developed countries. It was concluded that:

Poverty reduction is not possible without addressing the root causes of the low level of incomes and the high level of risks faced by the working poor in the informal economy. [. . .]. What the working poor lack, more fundamentally, is labour rights (if they are wage workers), business rights (if they are self-employed) as well as social protection, property rights, and the right to organisation and representation. (Chen, 2008: 18)

Mesa-Lago (2008) mentioned that the labour force in the informal sector had been excluded from social insurance coverage. Beyond this situation, the informal sector is devoid of regular capacity building programmes such as new knowledge or fresh ideas, new methods, business management skills, innova- tive production skills, marketing skills and entrepreneurship skills (NISER, 2003). The ILO’s support for the informal sector was revalidated during the international workshop on “undeclared work, informal economy and labour administration” which was held in Turin on 4-6 May 2005. Jutting et al. (2008) concluded that sector policies that focus solely on the formal or informal part of the economy should be questioned and replaced with an integrated approach. Other scholars equally canvassed support for the informal sector linkages with the formal sector (Jütting, Parlevliet and Xenogiani, 2008; Emmerij, 2005; Arimah, 2001). In her study of the informal sector linkages with the formal sector in Nigeria, Meagher (2007) reported that Ilorin weavings cluster and Aba garments and shoes clusters occasionally received significant subcontracts from the formal sector. The three clusters improved their marketing strategies due to their dependence on distribution linkages with the formal sector. This confirms the relevance of social capital in the informal sector linkages with the formal sector. The importance of social capital was also confirmed in a recent study on Sweden’s informal sector, where politicians and entrepreneurs collaborated as described by Berggren and Silver (2009: 125):

An open channel of communication between politicians and entrepreneurs allows the former to gain legitimacy in the eyes of the latter. By widening the network, more actors are involved in local and regional development, thereby raising the level of com- petence and resources.

Unlike Sweden’s experience, an atmosphere of suspicion characterizes the interaction between politicians and the majority of entrepreneurs in Nigeria.

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This has affected the informal sector linkages with the formal sector in Nigeria. Previous studies by Arimah (2001) demonstrated that an exploitative relation- ship emerges in the formal sector backward linkages with the informal sector, since procurement of inputs, spares and producer goods are dictated by the formal sector.

Theoretical Framework of Social Capital This paper is situated within the ambit of the Social Capital Theory as it empha- sizes social networks, norms, resources and relationships that are valuable for economic success (Coleman, 1990). The Social Capital Theory explains a process of ensuring cooperation among individuals and groups in a society. Such cooperation requires the use of resources embedded in social relationships, especially obligation, solidarity, information and services (Small, 2010). The Social Capital Theory evolved from the ideas of different scholars such as How- ard Becker, Pierre Bourdieu, James Coleman and Robert Putnam, although the theory has traditionally been associated with James Coleman (Bassani, 2003; Fine, 2001; Lin, 2001). For James Coleman (1988). This theory asserts that social capital is intangible; it exists and can be created or destroyed in the process of social interaction at micro or macro levels. In his further description of the Social Capital Theory, Coleman (1988) applied a number of concepts such as trust, norms, information, reciprocity, expectations and obligations. It was argued that with high levels of trust in social capital, mutually beneficial expectations and obligations could be met by individuals or an organisation. As described by various studies, the fundamentals of Social Capital Theory include resources, interaction, shared values, mutual trust, informal networks, collaborations and reciprocity (Trimble and Kmec, 2011; MacDonald and Day, 2010; Putnam, 2002; Fine, 2001; Woolcock and Narayan, 2000). With Putnam’s (2002) concepts of bonding and bridging, the Social Capital Theory has been enriched. While bonding connotes cohesion among individuals and groups, bridging implies mutual agreements between groups. Bonding and bridging are relevant for the informal sector linkages with the formal sector. Ojukwu and Onifade (2010) assumed that utilization of different dimensions of social capital could promote progress among individuals and groups in Nige- ria. Their assumption aligns with Putnam’s (2000) assertion that lack of social capital – resources, trust, norms, associations, and networks – would hinder a community’s capacity to collectively take advantage of opportunities. Cole- man (1988) also mentioned that the productivity of individuals and groups would depend on social capital in terms of resources, trust, information, norms, expectations, and reciprocity.

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The above-mentioned fundamentals of the Social Capital Theory are essential for developing the informal sector in Nigeria, especially in terms of the informal sector linkages with the formal sector. The fact that both sectors cannot be completely separated confirms the relevance of social capital in each sector’s success. The formal sector’s interaction with the informal sector has been encouraged through outsourcing and subcontracting, thereby resulting in what Emmerij (2005) called informalisation of employment. In this case, a number of persons could be informally employed in the formal sector as part of a chain of unequal but functional relationships with the informal sector. In fact, a formal sector without an element of informality is rare in Nigeria, considering the benefits of connections and informal processes for individuals and organisations. The informal sector interaction’s with the formal sector is also inevitable in Nigeria, as raw materials for the informal sector are usually obtained from the formal sector. The flow of resources between the two sectors provides a basis for the majority’s survival in Nigeria, considering the fact that:

In these times of worldwide economic crises it is the informal sector that provides the best opportunities for income generation among poor households. The more skills and knowledge the groups have, the less they would need to depend on the government for their survival. ( Jiyane and Mostert, 2010: 60)

The informal sector potentials for employment generation require resources, trust, associations, and norms of reciprocity. The language of the Social Capital Theory is essential for eliminating challenges in the informal sector. The informal sector activities usually require the participation of paid employees and unpaid close social relations, such as kin, neighbors, friends, and acquain- tances, reflecting its foundation in networks of support. This context makes recruitment of workers an easy task in the informal sector. The theory principally focuses on networks of relationships, reciprocity, trust, and social norms. These are crucial for developing the informal sector, which is primarily driven by traditional values such as culture of hard work, cooperation, integrity, commitment and dignity. The essence of some traditional work values was captured in a study by Olurode (2007: 135):

Hard work is valued and encouraged, from childhood to death. In order to obtain tan- gible rewards, an individual must match his ori (sic) with his chosen field of work. The Yoruba believe in a gentle rise to wealth [. . .] the highest form of employment is self- employment. A combination of these factors has resulted in a well established and historically successful market-based system.

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As used by Olurode (2007), the concept of ori connotes predestination in the Yoruba beliefs, thereby showing interplay of culture and religion in the analysis of employment generation. Also, it is noteworthy that social capital has been used to promote the informal sector linkages with the formal sector in a number of developed countries including Germany, Japan and Sweden. Les- sons from these countries can be replicated in Nigeria to ensure sustainable development.

Methodology Secondary and primary data were used for this paper. The secondary data are drawn from relevant documents and published articles. The primary data were collected from 480 trainees, 40 masters, 20 journeymen, and 120 community members through a structured questionnaire, Key Informant Interview (KII), and Focus Group Discussions (FGDs). The trainees were randomly selected from furniture and tailoring workshops in Lagos State, Nigeria. The focus on furniture and tailoring workshops is based on the fact that they provide ample opportunities for vocational training and they are more visibly organised than other segments of the informal sector in Lagos State and elsewhere. For instance, in his writing on the informal sector in Kenya, Emmerij (2005: 92) noted that: “Within the informal sector we find a variety of carpenters, masons, tailors, and other tradesmen.” The carpentry and furniture skills are usually combined in the Nigerian informal sector. Also, fashion design and tailoring skills have been integrated in the Nigerian informal sector. Thus, furniture and tailoring workshops in Lagos State, Nigeria provide access to different groups of persons with interrelated skills. The rationale for conducting the study in Lagos State is based on its hetero- geneity and status as the commercial capital of Nigeria. Lagos State was the Nigerian Federal Capital Territory (FCT) from its inception in 1967 to 1991, when the FCT was relocated to Abuja, a city in north-central Nigeria. It comprises settlements that have grown from predominantly farming and fishing villages to highly urbanised settlements, which have been structured into 20 local government areas as well as 57 local development councils. Lagos State accommodates her indigenous population and migrants from the six geo- political zones of Nigeria including south-south, south-east, south-west, north- east, north-west and north-central. Lagos State has been projected to be the world third largest city by 2015 (Massey, 2002). The study population cut across people with different socio-demographic backgrounds – sex, age, education, occupational status, etc. – to provide a

Downloaded from Brill.com10/04/2021 08:40:23AM via free access A. A. Akinwale / African and Asian Studies 11 (2012) 315-344 327 platform for balanced views on the informal sector as a catalyst for employment generation in Lagos State, Nigeria. Different groups with relevant information on the subject matter of the study were considered in the process of sampling to ensure selection of a representative sample. Specifically, the target populations include trainees, masters, journeymen and members of various communities in the study areas. The trainees were randomly selected, while the other participants were pur- posively selected in terms of location, availability, age, gender, and career. The random selection of the trainees was based on available data and a scientifi- cally tested method of probability sampling. As the target population, male and female trainees aged 12 years and above were included in the study due to the Nigerian Labour Act Cap 198 (49:1-5), which states that an apprentice must be at least 12 years. The sample was drawn from all furniture and tailoring enterprises in the twenty local government areas of Lagos State. Stratified and simple random sampling techniques were adopted in selecting 10 (one rural, three semi-urban and six urban) local government areas from the approved 20 (two rural, six semi-urban and 12 urban) local government areas of Lagos State. Every identified furniture and tailoring workshop with at least two trainees was considered in the selected local governments and 240 (120 each of furniture and tailoring) workshops were chosen from an estimated average of 96 furniture workshops and 112 tailoring workshops identified in each of the selected local governments. Two trainees were randomly selected from each of the 240 selected workshops. All the 480 trainees (240 each in furniture and tailoring) responded to a structured questionnaire. The questionnaire comprised questions on personal characteristics and capacity for self employment, while the KIIs and the FGDs assessed the relevance of the informal sector in Lagos State. The literate trainees filled the questionnaire personally, whereas it was interpreted for their semi-literate and illiterate counterparts. The questionnaire reflected basic concepts in the Social Capital Theory. Quantitative data were analysed through frequency distribution, chi-square and multiple regression, while content analysis was used for the qualitative data.

Findings and Discussion The next sections present several findings emanating from an empirical study of the informal sector and its employment generation potentials in Lagos State, Nigeria. The findings are based on a synthesis of quantitative and qualitative data. The implications of the findings are also presented accordingly.

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Demographic Profiles of the Respondents Table 1 shows the demographic profiles of 480 trainees in furniture and tailoring workshops in Lagos State, Nigeria. There was a significant gender difference amongst the trainees, as 69.4 percent of them were males. Very few female trainees (4.6 percent) were in furniture workshops compared with higher proportions of female trainees (56.7 percent) in tailoring workshops. This finding implies that the male gender dominated in furniture, while female gender dominated in tailoring. While furniture can be described as masculine, tailoring is unisex with relatively higher rate of feminine interests. As indicated above, the issue of gender deserves attention in further analysis of the informal sector vocations. The majority of the trainees (70 percent) identified with the Yoruba, followed by the Igbo (16.3 percent), the Hausa (7.5 percent) and other Nigeria’s ethnic groups (6.3 percent). This finding shows the presence of both indigenes and migrants in furniture and tailoring workshops in Lagos State. The indigenous populations found in furniture and tailoring workshops in Lagos State are different dialects of the Yoruba including the Awori, the Ogu, the Ijebu and the Ilaje. The other categories of people found there are different migrants such as the Igbo of south-east Nigeria, the Hausa-Fulani of northern Nigeria, the Ijaw of south-south Nigeria and the Tiv of central Nigeria. The highest number of the trainees (56.9 percent) identified with Christian- ity followed by Islam (34.8 percent) and traditional religion (8.3 percent). There was no fundamental difference in the religious affiliations of trainees in furniture and tailoring vocations. More trainees from both vocations identified with Christianity compared with those who identified with Islam and traditional religion. This implies that Christianity has become more popular than other religions in the study areas. The popularity of Christianity can be attributed to the influence of western education which started in Badagry, Lagos State since 1842 (Falola and Genova, 2009). Western education eventually spread from Lagos State to other parts of Nigeria, through establishment of schools from primary to tertiary levels. Most of the trainees (72.7 percent) were within 16-25 years without much disparity in their concentration in furniture and tailoring workshops. Only very few trainees (4.2 percent) were aged over 30 years. Also, 83.1 percent of the trainees were not married probably due to their relatively young age and occupational status. The highest proportions of the divorced and separated were found in tailoring workshops dominated by women. This suggests that the issue of divorce and separation is more predominant among women in the study areas.

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Table 1 Demographic Profiles of the Respondents Informal Sector Vocations Demographic Profiles Furniture (F) Tailoring (T) Total Frequency Percent Frequency Percent Frequency Percent (F = 240) (T = 240) (F&T = 480) Gender Male 229 95.4 104 43.3 333 69.4 Female 11 4.6 136 56.7 147 30.6 Ethnicity Hausa 15 6.3 21 8.8 36 7.5 Igbo 12 5 66 27.5 78 16.3 Yoruba 189 78.8 147 61.3 336 70 Others 24 10 6 2.5 30 6.3 Religion Christianity 136 56.7 137 57.1 273 56.9 Islam 90 37.5 77 32.1 167 34.8 Traditional Religion/ 14 5.9 26 10.8 40 8.3 Others Age (years) 11-15 23 9.6 22 9.2 45 9.4 16-20 70 29.2 79 32.9 149 31 21-25 100 41.7 100 41.7 200 41.7 26-30 32 13.3 34 14.2 66 13.8 31 + 15 6.3 5 2.1 20 4.2 Marital Status Not Married 189 78.8 210 87.5 399 83.1 Married 48 20 13 5.4 61 12.7 Divorced/Separated/ 3 1.3 17 7.1 20 4.2 Widow Education None/Informal 14 5.8 10 4.2 24 5 Primary 87 36.3 76 31.7 163 34 Junior Sec. School 58 24.2 39 16.3 97 20.2 Senior Sec. School 81 33.8 78 32.5 159 33.1 Tertiary/Other 0 0 37 15.5 37 7.7 Institution

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Data on educational attainment of the trainees revealed that most of them (95 percent) had formal education but the number of years they spent in school varied from six to fifteen years. The largest proportion (34 percent) had primary education followed by 33.1 percent with secondary education. This shows that many trainees in furniture and tailoring workshops in Lagos State had relatively low levels of formal education. Surprisingly, all trainees with tertiary education were in tailoring workshops. This implies that tailoring is more elit- ist than furniture and may attract prospective trainees with higher education. Previous study by Meagher (2007) reported a higher level of education among the entrepreneurs in the Aba garments cluster. Also, the higher representation of women in tailoring suggests that tailoring is more feminine.

The Interface of Gender and Education in Participation in the Informal Sector Vocations Table 2 shows a significant association between gender and education in the explanation of participation in furniture and tailoring workshops in Lagos State, Nigeria. It has been demonstrated that women with higher educational qualifications significantly participated in the informal sector vocations more than men with higher educational qualifications. Similarly, men with lower educational qualifications significantly participated in the informal sector vocations more than women with lower educational qualifications. This finding suggests that men’s participation in the informal sector vocations could be based on lower levels of educational qualifications. In contrast, women with higher levels of education have been found in the informal sector vocations. This situation can be attributed to women’s marginalisation in employment opportunities in the formal sector or their voluntary interest in the informal sector.

Identification with Vocations in the Informal Sector Table 3 depicts opinions on identification with vocations in the informal sector. Most of the respondents (66.3 percent) disclosed that they would have preferred only schooling but chose the informal sector vocations due to circumstances beyond their control. Only 21.7 percent mentioned that they preferred the informal sector vocations. This finding implies that furniture and tailoring vocations became alternatives for different reasons that can be associated with underdevelopment of the Nigerian society. While 46.1 percent of the respondents chose the vocations for future prospects and self employment, 26.9 percent of them did so to prevent idleness.

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Table 2 Distribution of Gender and Education in the Informal Sector Vocations Education Gender Male (%) Female (%) Total (%) X2 P-Value N = 333 N = 147 N = 480 None/Informal 4.5 6.1 5.0 Primary 36.3 28.6 34.0 Junior Secondary 22.5 15.0 20.2 Senior Secondary 32.7 34.0 33.1 Tertiary 3.9 16.3 7.7 Total 100.0 100.0 100.0 25.693 0.001

Mothers’ occupation significantly associated with the respondents’ choice of vocations (χ2 =33.71; P<0.05). In light of the above findings, it can be deduced that the choice of the informal sector vocation depends on several factors including failure of official policies, personal interest and socio-economic backgrounds of parents, especially mothers. In their explanation of the factors affecting trainees’ interest in the choice of the informal sector vocations, many masters and members of the community largely remarked that family support was a necessary condition for the choice of vocations. An informant testified that:

Home background tells on the determination of trainees. Some are very ready to learn and excel, some want to try but they don’t have help from parents especially mothers; and some are useless not because they have bad family but because they move with bad friends. (Male KII, Furniture Workshop)

Opinions of members of various communities were divided on their observation of young people’s participation in the informal sector vocations. Some of them attributed participation in the informal sector vocations to poverty and inability to pay school fees, while some mentioned that the participation in the informal sector was voluntary. Perhaps, few respondents (21.7 percent) volun- tarily chose the informal sector vocations. This finding confirms Horn’s (2010) report that participation in the informal sector vocations tend to rise during economic crises. The mothers of 84.2 percent of the respondents were self-employed, followed by those (8.8 percent) in civil service or with paid jobs. The respondents in furniture workshops had highest proportion (93.8 percent) of self-employed

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Table 3 Identification with Vocations in the Informal Sector Informal Sector Vocations Identification Furniture (F) Tailoring (T) Total Frequency Percent Frequency Percent Frequency Percent (F = 240) (T = 240) (F&T = 480) Preferred Vocation Schooling 160 66.7 158 65.8 318 66.3 Informal Sector 51 21.3 53 22.1 104 21.7 Vocations 29 12.1 29 12.1 58 12.1 Schooling/Informal Vocation χ2 = 0.05; P > 0.05 Reason for Choice of Informal Vocation* 69 28.8 60 25 129 26.9 Prevention of Idleness 62 25.8 58 24.2 120 25.0 Easy to Set Up 64 26.7 91 37.9 155 32.3 Future Prospect 37 15.4 29 12.1 66 13.8 Self-Employment 8 3.3 2 0.8 10 2.1 Other χ2 = 10.03; P < 0.05 Mothers’ Occupation * Self Employed 225 93.8 179 74.6 404 84.2 Civil Service/Paid Job 7 2.9 35 14.6 42 8.8 Unemployed 5 2.1 13 5.4 18 3.8 Others 3 1.3 13 5.4 16 3.3 χ2 = 33.71, P < 0.001 Fathers’ Occupation Self-Employed 163 67.9 171 71.3 334 69.6 Civil Service/Paid Job 53 22.1 54 22.5 107 22.3 Others 24 10 15 6.3 39 8.1 χ2 = 2.28; P > 0.05 Sponsor* Self 34 14.2 34 14.2 68 14.2 Mother 25 10.4 48 20 73 15.2 Father 65 27.1 43 17.9 108 22.5 Parents 56 23.3 74 30.8 130 27.1 Relatives 57 23.8 32 13.3 89 18.5 Boss/Master 3 1.3 9 3.8 12 2.5 χ2 = 24.24; P < 0.001

* Significant at P < 0.05; χ2: Chi-Square.

Downloaded from Brill.com10/04/2021 08:40:23AM via free access A. A. Akinwale / African and Asian Studies 11 (2012) 315-344 333 mothers, whereas their counterparts in tailoring workshops had highest number (14.6 percent) of mothers in civil service or wage employment. The above finding shows that the respondents’ interest in the informal sector vocations was influenced by their parents’ socio-economic backgrounds. However, some of the respondents (12.5 percent) including 19.6 percent of the respondents in tailoring workshops admitted low level of cordial relationships with their parents. Regarding sponsorship, 64.9 percent of the respondents noted that either mothers or fathers sponsored their vocations, whereas some of the respondents (14.2 percent) were self-sponsored. Only 2.5 percent relied on masters or trainers for sponsorship. Thus, the fact that not all trainees relied on family support for sponsorship shows different trends of social capital. Availability of sponsor is an empowering component of social capital. Those without sponsors would require alternative social capital for their career success.

The Informal Sector Potentials for Employment Generation Analysis of the respondents’ potentials for employment generation is presented in Table 4. There was no significant difference in the proposed plans for self employment among the respondents in furniture and tailoring workshops (χ2=1.44; P>0.05). This implies that both the respondents in furniture and tailoring workshops expressed similar views concerning their plans for self employment. A total of 82.5 percent of the respondents disclosed their plan for self employment. As indicated in the above finding, self employment is the primary rationale for placement in the informal sector vocations. It is generally believed that self employment is very vital for the development of society. This resonates with ILO’s (2012) estimates that 600 million new jobs are needed soon to avoid a further increase in unemployment. The estimates show that the global unemployment will rise more rapidly to more than 204 million in 2012, and a further increase to 209 million in 2013. The respondents’ capacity for self employment was tested through an investigation of their intentions to establish their own workshops. During the interviews, two-third of the masters expressed support for their trainees’ intentions to embark on self employment after freedom. As agreed during the focus group discussions, a large number of members of various communities equally mentioned that self employment was the ultimate dream of the majority of the entrepreneurs in the informal sector. The respondents’ knowledge of vocational practice was high at 83.3 percent and higher at 99.2 percent among the respondents in furniture workshops.

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Table 4 The Informal Sector Potentials for Employment Generation Informal Sector Vocations Employment Furniture (F) Tailoring (T) Total Opportunities Frequency percent Frequency percent Frequency percent (F = 240) (T = 240) (F&T = 480) Vocational Practice* Yes 238 99.2 162 67.5 400 83.3 No 2 0.8 78 32.5 80 16.7 χ2 = 86.64; P < 0.001 Plan for Self Employment Yes 203 84.6 193 80.4 396 82.5 No 37 15.4 47 19.6 84 17.5 χ2 = 1.44; P > 0.05 Capacity for Self Employment* 230 95.8 191 79.6 421 87.7 Yes 10 4.2 49 20.4 59 12.3 No χ2 = 29.39; P < 0.001 Capacity for Survival* Yes 160 66.7 122 50.8 282 58.8 No 80 33.3 118 49.2 198 41.3 χ2 = 12.41; P < 0.001 Survival Strategies* Self-Employment 101 63.1 8 6.6 109 38.7 Casual Work 38 23.8 79 64.8 117 41.5 Trading/Transport 3 1.9 14 11.5 17 6.0 Service Schooling 3 1.9 9 7.4 12 4.3 Barbing/Video Renting Other 9 5.6 16 8.2 19 6.7 Total 6 3.8 2 1.6 8 2.8 χ2 = 102.63; P < 0.001 160 100 122 100 282 100

Key: * Significant at P < 0.05; χ2 : Chi-Square.

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Their high level of vocational practice suggests gradual preparation for employment generation as the case may be. More than half of the respondents (58.8 percent) exhibited capacity for survival. Their proposed means of survival include self-employment and casual work. Two-thirds of the masters endorsed the respondents’ capacity for survival, while members of various communities also supported the idea and provided common rational for its necessity. A number of factors were, however, mentioned as challenges against the respondents’ capacity for survival in the informal sector. These include inadequate support, low level of education and poverty. One male informant asserted that:

Everything depends on experience of trainees in each workshop. Here, trainees do all sorts of works because I specialize in different aspects of my job. They can use wood to do many things on their own [. . .] It depends on seriousness. [. . .] I said education mat- ters in their abilities to survive on the job. (Male KII, Furniture Workshop).

Emphasis was placed on the relevance of learning and seriousness on the job despite the challenges against the respondents’ potentials for employment generation in the informal sector. Assessment and recognition of learning achievement was considered critical for the development of the informal sector. This finding converges with the previous study by Stasiūnaitienė (2009), who recognised the significance of learning achievements in the informal sector.

Predictors of Self Employment in the Informal Sector Table 5 shows the regression coefficients of the predictors of self employment among the trainees in furniture and tailoring workshops. The test of multi- colinearity was conducted to prevent misleading result. As such, the correla- tions of various pairs of predictors were computed, and those that were correlated were removed accordingly. Thus, none of the predictors of self employment was significantly correlated with each other. Also, the connection between the tolerance and variance inflating factor (VIF) was normal, as both of them are very close to 1. The plan for self employment was based on a combination of 12 variables, focusing on a number of employment-oriented responses. All the 12 variables were coded uniformly and combined into a com- posite variable, which was used as dependent variable in the multiple regression.

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Table 5 Predictors of the Respondents’ Plan for Self Employment Unstandardized Standardized t Sig. Model Coefficients Coefficients B Std. Error Beta 1 (Constant) .937 .032 29.555 .001 Sex –.120 .023 –.233 –5.243 .001 2 (Constant) 1.101 .057 19.247 .001 Sex –.106 .021 –.205 –5.101 .001 Age .066 .010 .264 6.783 .001 Mother’s Occupation –.032 .010 –.128 –3.144 .002 Father’s Occupation .005 .008 .022 .578 .564 Career Plan –.028 .008 –.130 –3.297 .001 Financial Support .004 .005 .032 .829 .407 Job Satisfaction –.224 .025 –.354 –9.138 .001

The first model of the regression shows that gender can significantly predict the respondents’ predisposition to self employment in the informal sector vocations under study. In this case, the determination for self employment was higher among men compared to women in the informal sector vocations. The rationale for this finding is not far-fetched, considering the prevailing culture of patriarchy, which reinforces men’s domination in virtually all aspects of the society. Evidently, men remain dominant in furniture workshops and still compete with women in tailoring. As shown in the second model of the regression, the observed plan for self employment among the respondents was significantly influenced by age, mother’s occupation, career plan and job satisfaction within the informal sector vocations. The aforementioned variables are individually and collectively significant in the prediction of self employment in the informal sector vocations under study. Thus, it can be deduced that capacity for self-employment in the informal sector depends on several factors. For instance, the plan for self employment in the informal sector increased with age of youth. This is a wel- come development given that youth are more vulnerable to the crisis of unemployment. A total of 74.8 million youth aged 15-24 were unemployed in 2011, indicating an increase of over 4 million cases of unemployment since 2007 (ILO, 2012). Also, self employment was significantly influenced by mother’s occupation and career plan as well as job satisfaction within the informal sector. This

Downloaded from Brill.com10/04/2021 08:40:23AM via free access A. A. Akinwale / African and Asian Studies 11 (2012) 315-344 337 implies that the likelihood of self employment would be higher among the youth whose mothers are either self employed or unemployed. It is noteworthy that mother’s socio-economic backgrounds can directly or indirectly affect youth’s interest in self employment. This is due to the power of socialisation in which mothers play significant roles. Moreover, self employment could depend on career plans in the informal sector. The rate of self employment will be higher among the youth who dili- gently plan for such employment in the informal sector. Plans for self employment are usually basic reasons for interest in vocational training in the informal sector. The issue of job satisfaction in the informal sector vocations is equally important in the explanation of the predictors of self employment in the sector. Youth who easily identify with and express fulfillment on their participation in the informal sector vocations are more likely to embrace self employment than their counterparts who are not genuinely interested in the informal sector vocations.

Change

Self Employment Orientation in the Informal Sector As shown in Table 6, almost 71 percent of the respondents with 87.1 percent of those in furniture workshops demonstrated high level of awareness of self employment. Also, their knowledge of self-employment was very high (92.9 percent) and significant (χ2=12.66; P < 0.05). Over 92 percent of the respondents considered themselves self employed in one way or the other and the majority of them (76 percent) wished to be self employed always or anytime possible. However, some respondents (26.7 percent) admitted that they lacked knowledge of self employment. Higher proportion of those that displayed adequate knowledge of self employment (78 percent) were in tailoring workshops, but the observed differences compared with those in furniture workshops were not significant (χ2=5.33; P > 0.05). This finding shows that knowledge of self employment principally depends on perceived complexity or simplicity of a vocation and self confidence. Expectedly, 87.3 percent of the respondents (including 93.3 percent of those in furniture workshops) disclosed their aspiration for self employment. This observation contradicts the earlier mentioned finding on plan for self employment, showing a fundamental difference between actual plan and aspiration. In this context, aspiration for self employment may or may not translate into

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Table 6 Self Employment Orientation in the Informal Sector Self-Employment Informal Sector Vocations Orientation Furniture (F) Tailoring (T) Total Frequency percent Frequency percent Frequency percent (F = 240) (T = 240) (F&T = 480) Awareness of Self Employment* Yes 209 87.1 131 54.6 340 70.8 No 31 12.9 109 45.4 140 29.2 χ2 = 61.35; P < 0.001 Knowledge of Self Employment* Yes 233 97.1 213 88.8 446 92.9 No 7 2.9 27 11.3 34 7.1 χ2 = 12.66; P < 0.001 Aspiration for Self Employment* Yes 224 93.3 195 81.3 419 87.3 No 16 6.7 45 18.8 61 12.7 χ2 = 15.79; P < 0.001 Ability for Self Employment* Yes 153 63.8 200 83.3 353 73.5 No 87 36.3 40 16.7 127 26.5 χ2 = 23.65; P < 0.001

* Significant at P < 0.05; χ2: Chi-Square. concrete plan for it. This assumption was tested via a probe in the questionnaire and 73.5 percent of the respondents (with 83.3 percent of those in tailoring workshops) confirmed their ability for self employment. There was a general consensus on the relevance of self employment in the informal sector. Almost all masters and members of various communities confirmed that self employment would result in poverty eradication in the informal sector. This finding is resonant with Palmer’s (2009) observation of state’s recognition of the informal sector in Ghana. Also, various policies – NDE, NEEDS, etc. – have been designed to promote the informal sector in Nigeria but such policies have not yielded desired results. This situation can be reversed through promotion of the informal sector linkages with the formal sector.

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Table 7 The Respondents’ Perception of Networks in the Informal Sector Informal Sector Vocations Networks Furniture (F) Tailoring (T) Total Frequency percent Frequency percent Frequency percent (F = 240) (T = 240) (F&T = 480) Rapport with Colleagues* 205 85.4 128 53.3 333 69.4 Yes 35 14.6 112 46.7 147 30.6 No χ2 = 58.14; P < 0.001 Rapport with Masters* Very Cordial 187 77.9 143 59.6 330 68.8 Cordial 41 17.1 76 31.7 117 24.4 Not Cordial 12 5.0 21 8.8 33 6.9 χ2 = 18.79; P < 0.001

* Significant at p <0.05; χ2: Chi-Square.

The Relevance of Networks in the Informal Sector The qualitative and quantitative data reflected diverse opinions on the relevance of various networks associated with the informal sector. Almost all the masters recognised the uniqueness of their informal sector vocations and the need for integration with the formal sector. They mentioned areas of agreement and disagreement within and outside their informal sector vocations. Table 7 depicts agreement in terms of rapports among trainees and their masters. Many of the respondents (69.4 percent) disclosed that they had rapport with their colleagues at the workshops. Expectedly, 68.8 percent of the respondents disclosed that they had very cordial relationships with their masters or trainers. Regarding the relevance of networks in the informal sector, it was disclosed that the production systems in the informal sector involve a division of labour and co-operative networks across workshops. Identified common practices include subcontracting among workshops and regular informal borrowing of equipment and inputs. Meagher (2007) equally found that self employment was enhanced in the informal sector through inter firm networks, voluntary associations and participation in subcontracting relations with the formal sector. All the masters and members of various communities unanimously agreed on the need for eradication of unemployment in Nigeria. The relevance of the

Downloaded from Brill.com10/04/2021 08:40:23AM via free access 340 A. A. Akinwale / African and Asian Studies 11 (2012) 315-344 informal sector networks with the formal sector was also recognised in the discourse on the modalities for eradication of unemployment in Nigeria. Rapport was considered necessary for progress of individuals in the informal sector. This finding further shows the relevance of social capital to an understanding of the informal sector potentials for employment generation. Rapport, as an important element of social capital, can be used to promote the informal sector integration with the formal sector. Rapport is needed for ensuring good quality work, which could promote forward linkages with the formal sector, especially through an opportunity for subcontracting. The relevance of rapport was reinforced in a previous study by McDonald and Day (2010: 535), showing that “when birds of a feather flock together”, their advantages and disadvantages tend to be consolidated. In the light of this observation, similar workshops in the informal sector can join their resources in order to improve the quality of their products and services. A combination of resources of individuals in the informal sector can strengthen the capacity of each individual in the sector, thereby providing a context for expansion or diversification of business.

Conclusion The paper examined the informal sector as a catalyst for employment generation in Lagos State, Nigeria. The paper showed the relevance of the informal sector vocations in the light of the practical experience in furniture and tailoring workshops across Lagos State, the commercial headquarters of Nigeria. Participation in the informal sector has become increasingly necessary in Nige- ria, given the prevailing socio-economic situations including inadequate access to education, unemployment, poverty and the persistently limited capacity of the formal sector. Essentially, networks of support are important for success in the informal sector. In fact, sponsorship is an empowering component of social capital needed for survival in the informal sector. Those without sponsors would require alternative social capital that can guarantee their career success. Opportunities for building social capital were observed in the relationships among masters and trainees in the informal sector. Employment generation became realistic in the light of the masters-trainees relationships. The informal sector vocations were however not originally attractive to a large number (66.3 percent) of trainees in furniture and tailoring workshops. This category still thought that schooling could be better than career development in the informal sector, indicating their desire to embrace opportunities for further education. Such opportunities should however not result in relega-

Downloaded from Brill.com10/04/2021 08:40:23AM via free access A. A. Akinwale / African and Asian Studies 11 (2012) 315-344 341 tion of the informal sector potentials for employment generation. Interest in the informal sector vocations was nurtured by the significant other especially parents and relatives. This suggests that employment generation in the informal sector can be sustained through several networks including interaction with external stakeholders including colleagues, masters, relatives and members of various communities. In the light of the profound capacity for self employment and relatively high level of commitment to the informal sector vocations, different reasons adduced for interest in the sector include the following: concerns for future success, self employment, family pressure, prevention of idleness, and life satisfaction. These constitute the push factors of entrepreneurship in the informal sector. It is believed that through the informal sector, idle labour would be equipped with technical skills for self employment. There was a general consensus on the relevance of self employment in the informal sector. This however requires a blend of the formal and informal education. Virtu- ally all masters believed that western education is a pre-requisite for sustainability of the informal sector potentials. This sector should be recognised and integrated with the formal sector in Nigeria. Caution must be exercised in the process of integrating the informal sector with the formal sector to protect the former from losing its inherent qualities. The nomenclature of the informal sector should be maintained irrespective of its restructuring towards better organization and optimal utilization of its physical, human and social capital. Essentially, adequate infrastructure and enabling policies are needed for the sustainability of the informal sector in Nigeria. The Nigerian government must absolutely provide an adequate infrastructure to enhance indigenous capaci- ties for entrepreneurial development. Entrepreneurship has become the main driver of the Nigerian economy but critical infrastructure required to promote it is clearly lacking in the country. Nigerians who cannot wait for the state pro- vision of social security should turn to their local cultural heritage including traditional norms of reciprocity and solidarity in the informal sector to eke out a living. The mass media must also promote culture of innovation to redirect the Nigerian society to reclaim the lost opportunities for socio-economic development. Time is ripe for the development of indigenous cultures of innovation and the informal sector potentials should not be underrated.

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