Assessment of Informal Sector and Poverty Alleviation in Nigeria: A Study of Commercial Motorcycle Riders in Minna Metropolis

Abstract

The study investigated the effect of the informal sector on poverty alleviation amongst commercial motorcycle riders in Minna Metropolis of Niger state Nigeria. The research used primary data collected from 379 respondents randomly selected from a population of 7273 registered motorcycle operators in Minna Metropolis. Descriptive statistics and regression analysis were used in analyzing the data. Employing ordinary least squares ( OLS) technique, three econometric models were estimated and tested using income, Consumption expenditure and wealth accumulation as dependent variables while experience, age, level of education, marital status, number of dependents, mode of operation, number of hours worked per day and daily turnover of the respondents as explanatory variables. The study revealed that 93% of the operators earn above the international poverty line of one dollar a day. Furthermore, experience, mode of operation, number of hours worked and turnover were the major determinants of poverty alleviation of the commercial motorcycle riders in Minna Metropolitan area. The implication of these findings points to the need for serious attention to the sector through rigorous regulation and funding so that it will help in solving unemployment and poverty problems in Minna metropolis, Niger state and the country at large.