MONEY MATTERS: Growing Informal To Formal Businesses

According to World Bank, 80.4 per cent of Nigeria’s employments are in the informal sector. Moreover, the informal sector of an advanced economy accounts for one-third of their national Gross Domestic Product(GDP), but more than two-thirds of employment in developing and emerging economies.
Moreover, the Think Tank on Nigeria (TTON), an online policy advocacy platform, has advised the government to focus on developing the informal sector’s businesses into a formal businesses to maximise economic profit for the country.

During the public presentation of ‘Conversations Vol 1,’ a compendium of communiques on various pertinent issues facing Nigeria, held at the University of Lagos (UNILAG) recently, the platform urged government to turn these statistics to the advantage of the country, by transforming informal sector into the formal sector.
To this end, TTON proposes free business name registration and a tax waiver for two years with expulsion from databases if taxes aren’t paid; improved education and skills training including degree programmes focused on economic cooperatives and grassroots skill acquisition training; formalising local transportation to increase tax income; using trade associations to collect data and calculate contributions made by various sectors towards overall economic growth.

Speaking further, the convener, TTON, Engr. Dideolu Falobi believes the major challenge with our 25-year-old 4th Republic is the elevation of politics over governance as well as endemic corruption.
He said: “I believe there is no argument against that. Most of our elected functionaries are so busy with politics and the accumulation of illicit wealth that no serious thoughts are given to the generation of ideas that will drive good governance, ensure peaceful and equitable development, as well as assure our today and the future.
“Thus, we have had increasing poverty and insecurity, decaying infrastructure, declining productivity, worsening unemployment, decadent education system, and a health system that we are not proud of.
“In recent times, the sad realities of food insufficiency, collapsed Naira, and horrendous human resources flight (JAPA syndrome) stare us in the face. Wherever we turn, we have tales of woes. Our youths have now lost confidence and trust in the nation. So many indulge in drugs, fraud of all sorts, rituals, and all sorts of criminal activities to empower themselves.

“Another majority are now involved in gambling at an alarming level; probably endemic level will be the best word to describe the gambling activities by our youths. Yet we have the human and material resources to halt the decline and restore our nation to its rightful place in the comity of Nations.”