Informal Sector Entrepreneurship and Poverty Reduction in Kogi State: A Study of Market Traders

This study examines the relationship between informal sector entrepreneurship and poverty reduction among market traders in Kogi State, North Central Nigeria, investigating whether self-employment in the informal economy provides a meaningful pathway out of poverty for low-income traders. Nigeria's informal economy absorbs the majority of the labour force, and market trading is one of its most prevalent forms, yet the extent to which informal entrepreneurship translates into sustained poverty reduction rather than mere subsistence remains an important empirical question. The study employs a descriptive survey design, drawing a sample of 220 market traders from Lokoja Central Market, Okene Market, and Anyigba Market through systematic sampling. A structured questionnaire collected data on income, household expenditure, asset ownership, business investment, and household poverty indicators. Poverty status was determined using the National Bureau of Statistics' multidimensional poverty headcount. Data were analysed using descriptive statistics and chi-square tests. Findings indicate that 58 percent of sampled traders still fall below the multidimensional poverty threshold despite active business engagement, suggesting that informal trading in Kogi State functions primarily as coping rather than advancement entrepreneurship for the majority. Traders with larger working capital, formal business registration, and access to savings groups show significantly better poverty indicators. Secondary school completion is the strongest single predictor of above-poverty income performance among traders. Recommendations include targeted financial literacy and savings mobilisation support for informal traders through Kogi State's cooperative society network. Keywords: informal entrepreneurship, poverty reduction, market traders, Kogi State, informal economy.