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An assessment of the informal transport sector and its contributions to employment generation in Aba South Local Government Area, Abia State.

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  • NGN 5000

Background of the study:

The informal transport sector in Aba South plays a pivotal role in generating employment and sustaining local economies. Despite being characterized by unregulated operations, these transport services facilitate mobility and provide income for numerous individuals (Nnamani, 2023; Uche, 2024). The sector’s dynamic nature is reflective of grassroots entrepreneurship, where small operators create opportunities amid limited formal employment prospects. Recent studies highlight that the informal nature of transport in this area contributes significantly to economic inclusivity and urban mobility, even as it faces challenges such as inadequate infrastructure and regulatory ambiguities (Okorie, 2025). This study examines how the informal transport sector not only fills the employment gap but also acts as a catalyst for local economic development. It further investigates the interplay between informal practices and emerging formalization efforts, suggesting that appropriate policy frameworks could enhance efficiency while safeguarding livelihoods. Through critical analysis and empirical evidence, the research aims to provide insights into the sector’s contributions and the potential for sustainable development within the local transport economy.

Statement of the problem:

Despite its significant contribution to employment generation, the informal transport sector in Aba South is plagued by regulatory uncertainties and infrastructural challenges. The lack of formal oversight results in inconsistent service quality, safety concerns, and potential exploitation of operators. This scenario limits the full potential of the sector in contributing to sustainable economic growth. Inadequate policy measures have further compounded these challenges, leaving operators and users vulnerable. Hence, there is a pressing need to investigate these issues and propose viable solutions for improved regulation and support.

Objectives of the study:

1. To assess the contribution of the informal transport sector to employment generation.

2. To examine the challenges faced by transport operators in Aba South.

3. To propose policy recommendations for enhancing the efficiency and safety of the informal transport sector.

Research questions:

1. How does the informal transport sector contribute to local employment?

2. What are the key challenges hindering its optimal performance?

3. What policy measures can improve the regulatory framework for informal transport?

Research Hypotheses:

1. The informal transport sector significantly boosts local employment rates.

2. Regulatory gaps adversely affect the operational efficiency of transport operators.

3. Enhanced policy measures lead to improved performance and safety in the sector.

Significance of the study:

This study is significant because it elucidates the critical role of the informal transport sector in employment generation. It provides evidence-based recommendations for policymakers to formalize and support the sector, thereby fostering sustainable local economic development.

Scope and limitations of the study:

The study is limited to assessing the informal transport sector and its employment contributions in Aba South Local Government Area, Abia State and does not extend to other urban sectors or regions.

Definitions of terms:

• Informal transport sector: Transport services operating without formal regulatory oversight.

• Employment generation: The creation of job opportunities through economic activities.

• Regulatory uncertainties: Ambiguities and gaps in policy and enforcement affecting sector operations.

 





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