The Market Traders Association of Nigeria (MATAN) has alerted the government about dangers of neglecting the informal sector, as its exclusion can hinder economic growth.
MATAN national secretary, Olakunle Johnson, gave the advice during the signing of a Memorandum of Understanding (MoU) with the Ndigboamaka Progressives Markets Association on Wednesday in Lagos.
The Ndigboamaka is the umbrella body of major markets in Lagos State led by its President Chinedu Ukatu.
Johnson, also the national chairman of Project Steering Committee Integration Market Trader’s Revenue Management System, on VAT Direct Initiative VDI, said good relations between the government and the informal sector had become imperative to expedite economic growth.
Stressing the importance of the Igbo traders in the commerce of the state and Nigeria, Johnson said that the government must always get the informal sector involved in economic development.
“The informal sector takes a larger chunk of close to 80 per cent of Nigerian workers while the remaining 20 per cent is occupied by the formal sector.
“This affirms the fact that the informal sector drives the system.
“Government needs MATAN in any negotiation with the people in the informal sector because the association has the required data to access them appropriately.
“If neglected, it will not speak well for the country,” he said.
According to him, only MATAN can talk to everyone in the informal sector in the language they understand.
Speaking on the MoU, Johnson said that both associations were collaborating to make sure more traders come to the tax net.
He said that the step was part of the efforts to implement the integration of the market revenue management system, VAT initiative.
“Lagos has almost over 400 markets of which Igbo traders control about 68-70 markets.
“We have met the Igbo traders’ section, they are important in Lagos because if removed from the markets in Lagos, we will be left with pepper and all other perishable market traders.
“MATAN, having signed MoU with the Federal Internal Revenue Services (FIRS), the Joint States Internal Revenue Services, the Association of Local Government in Nigeria and other government agencies, all strata of the informal sector, have keyed into this project.
“So, the government needs to go back to the grassroots and bring them to the tax net, including those exempted from paying tax.
“Once we know ourselves and the data is available, we will be able to decipher if any change of status occurs and ensure tax payment accordingly,” Johnson said.
He said that the government also needed to involve MATAN in its efforts geared towards ensuring the welfare of the citizens.
According to him, most of the economic crises facing the country came because the informal sector was left behind.
He said that informal traders’ services needed to be recognised by the government while also bringing traders on board by creating a template for them.
Speaking, Ukatu said: “The MoU we signed with MATAN is a historic one because for so long we have been contributing so much to grow the nation’s GDP but nothing is coming our way in terms of benefit.
“Looking at the MATAN Idea, we find it good enough and that informs our decision to partner with them.
“Our market covers major international markets where importers and exporters trade, an entry point of more than N23 million verifiable traders here.”
Earlier in his welcome address, the chairman of MATAN, Lagos State chapter, Chief Moshood Fadaka, said that no serious government would neglect the informal sector of the economy.
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel
