ABSTRACT

This study examined the contribution of informal sector to poverty reduction in Abia State focusing on food vending activities. Specifically, the study include; Analyze the socio-economic profile of informal activities related to food done by food vendors in the study, identify different forms of food vending, estimate the effect of food vending on household welfare, to identify factors affecting performance of food vending, identify problem militating against food vending as a means of enhancing household welfare. Data for the study were collected from a sample of 100 respondents using structural and pretested questionnaires. The sampling technique adopted was purposive sampling technique. The study employed descriptive statistics, correlation analysis and multiple regression model in the analysis of data. The study findings revealed that income accrued from food vending had positive contributions in poverty reduction among food vendors in the study area in terms of ensuring, households foods, accessibility, ability to carter the need of clothing as well as ability of the households to meet the cost of education and health services. However, lack of business premises was the major problem affecting the performance food vending activities followed by lack of education and lack of capital. The study, therefore, conducted that food vending activities are vital weapon for fighting against poverty not only in the study area but also other parts of the country. It was then recommended that both government and stakeholders should promote the sustainability of food vending activities through provision of soft bank loan, credits facilities, marketing skills and permanent working premises.