Unlocking the Fiscal Potential of the Informal Sector in Plateau State: An Assessment of Revenue Mobilisation Strategies.

The informal sector is a critical yet underexplored component of Nigeria’s economy, particularly in Plateau State, where it sustains livelihoods, drives local production, and mitigates unemployment. Despite its economic significance, the sector’s revenue-generating potential remains largely untapped due to weak policy frameworks, high informality, and poor integration into the formal tax system. This study investigates the economic contributions of the informal sector in Plateau State, focusing on revenue generation, employment creation, and poverty alleviation. Utilising a mixed-methods approach comprising surveys, interviews, and econometric analysis, the study evaluates the fiscal potential of the informal economy and proposes actionable policy measures for enhanced revenue mobilisation. Findings indicate that structured formalisation and improved tax administration could significantly boost Plateau State’s Internally Generated Revenue (IGR) while promoting inclusive economic development.