Background of the Study
Birnin Kudu Local Government Area (LGA) in Jigawa State has a significant informal trading sector, which plays an essential role in the local economy. Informal traders, who often engage in small-scale, unregulated commerce, contribute to employment and income generation in the region. However, the informal trade sector is heavily influenced by geopolitical pressures, including local government policies, state-level regulations, national economic strategies, and global market dynamics. Issues such as fluctuating political climates, border policies, and taxation regimes have created both opportunities and challenges for informal traders in Birnin Kudu. This study aims to explore how these geopolitical pressures impact the informal trading activities in the area, assessing both the constraints and opportunities presented by political, economic, and regulatory forces.
1.2 Statement of the Problem
Informal traders in Birnin Kudu face several challenges exacerbated by geopolitical pressures, including the impact of local and state government policies, fluctuating border regulations, and regional economic shifts. These factors complicate the operation of informal trading businesses and impact their profitability and sustainability. This study seeks to understand the effects of these geopolitical pressures on the livelihood of informal traders in Birnin Kudu LGA.
1.3 Objectives of the Study
To examine the impact of geopolitical pressures, such as state policies and regional economic shifts, on informal trading activities in Birnin Kudu LGA.
To assess the role of local government in shaping the operating environment for informal traders.
To propose recommendations for improving the business environment for informal traders in Birnin Kudu by addressing the geopolitical pressures they face.
1.4 Research Questions
How do geopolitical pressures affect informal trading activities in Birnin Kudu LGA?
What role does local government policy play in regulating informal trade in the region?
What strategies can be employed to mitigate the challenges faced by informal traders due to geopolitical pressures?
1.5 Research Hypothesis
Geopolitical pressures, such as border regulations and national economic policies, negatively affect informal trading activities in Birnin Kudu LGA.
Local government policies, including taxation and market regulations, contribute to the challenges faced by informal traders in the region.
Addressing the geopolitical pressures through targeted policy reforms can improve the sustainability of informal trading in Birnin Kudu.
1.6 Significance of the Study
This study will shed light on the challenges faced by informal traders in Birnin Kudu LGA, offering insights into the impact of geopolitical factors on local commerce. It will provide valuable recommendations for policymakers and local government authorities to improve the trading environment, enhance economic opportunities, and support the growth of the informal sector (Akinyemi & Lawal, 2024).
1.7 Scope and Limitations of the Study
The study will focus on informal trading in Birnin Kudu LGA, Jigawa State. Limitations may include challenges in accessing accurate data on informal trade transactions and government policies.
1.8 Operational Definition of Terms
Informal Trading: Small-scale, unregulated commercial activities, often operating outside formal business structures and regulations.
Geopolitical Pressures: External political, economic, and regulatory factors that influence local governance, trade, and business activities.
Birnin Kudu Local Government Area: A rural region in Jigawa State, Nigeria, known for its vibrant informal trade sector (Akinyemi & Lawal, 2024).
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