Stress Testing in the Nigerian Banking Sector

Labour markets in Sub-Saharan Africa are often categorized into formal and informal sectors. However, thereduction in the absorption capacity of the formal sector has increased the preponderance of unemployment andhas necessitated the need to look for an alternative sector to absorb the excess labour supply. This studyexamines the employment creation potentials of the informal sector in Nigeria. Primary data were randomlycollected for the study via interview and administration of questionnaire to respondents in six randomly selectedareas in Ilorin metropolis, Kwara State, Nigeria. The data collected were analyzed using a descriptive analysis.The results from the study showed that the informal sector in the country has the capacity to absorb all categoriesof workers irrespective of their levels of education, and is a veritable tool for employment creation, incomegeneration and poverty reduction in Nigeria. The study concludes that the informal sector is a veritable tooltowards reducing unemployment in Nigeria and recommends the development of an employment strategy that isinformal sector based