CONTRIBUTION OF INFORMAL ENTREPRENEURSHIP TO INTERNALLY GENERATED REVENUE OF GOVERNMENT IN SOUTH-WEST NIGERIA

Authors

  • Williams Omodara Alabi, Department of Entrepreneurial Studies, School of Vocational & Entrepreneurial Studies, College of Technology, Bamidele Olumilua University of Education, Science and Technology, Ikere - Ekiti, Nigeria. Author
  • Oluyemisi Omobola Agboola Department of Accounting (Entrepreneurship), Ekiti State University, Ado-Ekiti, Nigeria. Author
  • Olumuyiwa Oladapo Fasanmi Department of Entrepreneurial Studies, School of Vocational & Entrepreneurial Studies, College of Technology, Bamidele Olumilua University of Education, Science and Technology, Ikere - Ekiti, Nigeria. Author
  • Sodeinde Gbemi Moses Department of Business Administration, Precious Cornerstone University, Ibadan, Oyo State. Author

Keywords:

Informal Entrepreneurship, Tax, Revenue, Entrepreneur, Economy

Abstract

The informal sector's contribution to government revenue through tax payments remains a significant challenge in 
Nigeria, particularly in the South-West region, where the informal sector is predominant. This study aims to 
examine the contribution of informal entrepreneurship to the internally generated revenue of government in South
West Nigeria, and to identify the factors that influence compliance with revenue payment among informal 
entrepreneurs. A convenient sampling method was used to select informal entrepreneurs in six local governments 
across the South-West region with population of 136 local government administrators and a sample of 255 informal 
was selected across the local government area. Primary data collected through questionnaires administered to the 
selected entrepreneurs, and analyzed using Analysis of Variance (ANOVA). The findings revealed that informal 
entrepreneurs comply with revenue payment, and their contribution to the internally generated revenue of 
government in South-West Nigeria is significant. The study recommends that government revenue collection 
agencies leverage trade associations and religious beliefs to enhance enforcement and compliance. 

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Published

2026-09-15

Issue

Vol. 5 No. 2 (2025): IJARMS (Vol5 No2 DECEMBER 2025)

Section

Articles