An evaluation of the informal transportation sector and employment generation in Nnewi South Local Government Area, Anambra State
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Background of the study
The informal transportation sector in Nnewi South Local Government Area has emerged as a significant contributor to local economic activities and employment generation. Over recent years, the sector has expanded due to the rising demand for flexible, affordable transit solutions among residents. Its operations, though unregulated, have enabled rapid adjustments to market needs and created numerous job opportunities, thereby fueling socio-economic growth (Okafor, 2023). Local studies reveal that the informal sector not only meets transportation demands but also serves as a primary source of livelihood for many, thereby reducing urban unemployment (Ibrahim, 2024). However, the sector’s expansion has also brought challenges, including safety concerns and a lack of formal oversight, which complicate policy implementation. The dynamic interplay between service provision and job creation in this sector provides a rich area for exploration, as it mirrors broader economic trends within the region. Moreover, understanding its role could pave the way for strategies to formalize operations while preserving its benefits. Recent analyses also highlight the need for improved infrastructure and regulatory frameworks to maximize both economic and social outcomes (Chukwu, 2025).
Statement of the problem
Despite its significant contribution to employment, the informal transportation sector in Nnewi South faces challenges such as regulatory ambiguity, safety issues, and infrastructural inadequacies. These factors undermine service quality and limit the sector’s potential to generate sustainable employment. The lack of formal data collection and effective oversight further complicates the assessment of its economic impact, necessitating a thorough investigation into its operations and challenges (Okafor, 2023).
Objectives of the study:
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To evaluate the contribution of the informal transportation sector to employment generation.
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To assess the operational challenges and regulatory issues affecting the sector.
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To propose policy recommendations for sustainable development and formalization.
Research questions:
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How does the informal transportation sector contribute to employment in Nnewi South?
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What operational and regulatory challenges hinder its performance?
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What policy measures can enhance its sustainability and formalization?
Research Hypotheses:
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The informal transportation sector significantly contributes to employment generation.
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Regulatory challenges adversely affect the sector’s safety and efficiency.
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Policy interventions can improve the operational performance of the sector.
Significance of the study
This study provides insights for policymakers and stakeholders by detailing the role of informal transportation in job creation and local economic growth. The findings will inform strategic decisions aimed at enhancing infrastructure, safety, and regulatory frameworks, ultimately contributing to sustainable development and improved livelihoods in Nnewi South.
Scope and limitations of the study:
Limited to the informal transportation sector and employment generation in Nnewi South Local Government Area, Anambra State.
Definitions of terms:
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Informal Transportation: Unregulated transit services provided outside formal institutional frameworks.
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Employment Generation: The process of creating job opportunities.
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Local Government Area: An administrative region with localized governance.
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