Informal Sector Crucial for Nigeria's Economic Growth

During the inaugural lecture at the FirstBank Samuel Asabia Professorial Chair in Business Ethics Public Lecture on Thursday, Prof. Kenneth Amaeshi, a Chair in Business Ethics at the University of Lagos, called for greater recognition of the informal sector as a vital driver of job creation and economic growth in Nigeria. He highlighted that while large corporations receive significant attention and government support, they contribute minimally to direct employment compared to micro-enterprises.

Amaeshi provided a comparison, noting that First Bank employs about 30,000 people, and collectively, all banks in Nigeria employ around 600,000, which is insufficient for a population of approximately 200 million. He argued that while formalizing the informal economy could provide benefits, rigid taxation could hinder small businesses.

He stated that small business owners are willing to contribute to national development but are discouraged by a lack of transparency regarding tax revenue usage. Mr. Olusegun Alebiosu, Managing Director and CEO of FirstBank Group, noted that the informal sector contributes about 42.5% to Nigeria's GDP, supporting millions of households.