Challenges of Informal Sector in Post Fuel Subsidy Removal in Nigeria

Abstract

The recent removal of fuel subsidy by the federal government has an adverse impact on the livelihoods of the informal sector in Nigeria. According to the World Bank, 80.4% of Nigerians are employed in the informal sector accounting for over 70% of the Nigerian economy. Thus, the removal of the fuel subsidy had worsened the socio-economic conditions of the informal sector workers who are yet to recover from the adverse impact of the recent coronavirus pandemic and the Naira Redesign Policy. Against this backdrop, the following recommendations have been suggested for the consideration of the National Assembly to address the problems: (i) The National Assembly may move a motion calling on the executive to expedite actions on the palliative measures, such as the proposed introduction of Compressed Natural Gas (CNG) mass transit buses, Loans to MSMEs, Students Loans and New National Minimum Wage. (ii) The National Assembly may invite officials of the National Social Safety Net Coordinating Office (NASSCO) for interactive session to determine the credibility of the National Social Register. (iii)The National Assembly may sponsor a bill for an Act to establish a scheme for the welfare of workers in informal sector that will guarantee their social welfare.