The paper examines the role of urban informal sector in unemployment and poverty reduction in Nigeria. It explains that unemployment as one of the macroeconomic problems could be reduced through the informal sector participations provided it is well supported and managed through accessibility to credit and the like. Studies that have been carried out on the informal sector explain that those caught up in urban poverty resort to the informal sector as a survival strategy. It is against this

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... round of increasing urban poverty and decline in formal employment opportunities in Nigeria that the paper tries to look into the issues of whether or not the informal sector is a panacea or a solution to unemployment in Nigeria.