By Prince Osuagwu

One of the greatest failures of successive Nigerian governments has been the inability to properly aggregate the worth of the informal sector and showcase same to the world. This also seems to be why the common understanding of Nigeria’s economy by the outside world is basically an economy in the woods. Most unfortunately the perceived bad governance and political system allegedly fraught with corruption and below par human policies, give an impression of an economy seriously in need of restructuring.

However, that may not actually be the case. The contributions of the informal sector alone, is enough to give the country a clean bill of health economically. At a validation workshop on the report of the pilot study on ‘Informal Sector and Economic Development in Nigeria’ in 2014, United Nations resident coordinator/representative of the United Nations Development Programme,UNDP in Nigeria, Daouda Toure declared that Nigeria’s informal sector accounts for as much as an estimated 57.9 percent of the nation’s rebased Gross Domestic Product, GDP.

Toure backed his declaration up with the findings of the report which stated that “six pilot states, Abia, Rivers, Bauchi, Kano, Niger and Lagos, hosted about 6 million informal sector operators, and employing up to 14.37 million people”. Toure almost immediately found corroboration in the last trade and investment minister, Olusegun Aganga, who almost at the same time in 2014, announced that the 17.2 million Micro, Small and Medium Enterprises,MSMEs in operation provided 32 million jobs and accounted for 46.5% of GDP.

In 2015, the trajectory of growth in the informal sector also appears appealing. According to the latest quarterly report on employment from the National Bureau of Statistics, NBS, in the first quarter of 2015, the total number of jobs created in the economy was 469,070 jobs. Out of this number, the formal sector created 130,941 jobs while the informal sector created a staggering 332,403 jobs.

These significant national economy contributions, apparently underscore why stakeholders are challenging the new government of President Muhammadu Buhari to encourage and empower the informal sector through the provision of conducive policy and physical conditions. In apparent reaction to this call, Nigerian telecom chief regulator, the Nigerian Communications Commission, NCC is taking the first shot proper showcasing of the potentials of the Nigerian informal sector.

The commission has just announced that Small and Medium Enterprises, SMEs, will form a major part of the delegation from Nigeria to attend the International Telecommunications, ITU Telecom World 2015 in Budapest, Hungary.

A Committee made up of officials of Ministry of Communications, NCC, Galaxy Backbone, Nigerian Communications Satellite Ltd, NigComSat, Nigerian Postal Service NIPOST, and Universal Service Provision Fund USPF, among others has been constituted to put together plans for Nigeria’s participation at the event which holds October 12-15.

Chairman, Media and Publicity Sub- Committee and Director, Public Affairs NCC, Mr. Tony Ojobo disclosed that Nigeria would make a big statement in this year’s participation as large numbers of SMEs are expected to take part in the event which theme is built around “Innovation To make Lives Better and Faster”.

He said Nigeria’s participation will build on the reality that regulatory robustness has led to a spiral growth in voice telephony even as the delegation would look beyond that to come out with innovative products to improve the lives of the citizens. ITU on its part has listed five key reasons why countries, Individuals, Corporate organisations should participate in the Hungary event.

Besides exceptional knowledge sharing, opportunities, ITU Telecom World 2015 will focus on accelerating innovation and growth of SMEs and innovative networking opportunities. Of particular interest is the role SMEs play in driving national economies. One of the key concerns of the Hungarian government is to provide a balanced and predictable business environment where SMEs can easily find support or exploit business opportunities. This is what the country wants to share with participants in Budapest.

Ojobo said Nigeria will share in this, adding that the Nigerian SME ecosystem would be guided by the experiences expected to acquire through networking at the ITU Telecom World 2015.

The event will focus on the crucial role of innovation and entrepreneurship in the fast growing ICT ecosystem, covering a broad-based international audience with specific outreach to SMEs and startups from across the world, as well as leading global ICT players, policy makers, regulators, industry experts and investors.