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The informal sector is essential for economic growth. It is a key provider of jobs and income in emerging economies. But the crisis caused by the pandemic has had a significant impact on these economies. Therefore, this study investigates the impact of Covid-19 on the economic prospects of the informal sector of Nigeria and also proposes various strategies to support the sector. The study highlights some of the challenges facing the informal sector of Nigeria, such as institutional inadequacies, unsafe working conditions, poor enforcement and the non-participation of informal entrepreneurs in decision-making. The impact of Covid-19 is felt in different ways, which means that all the elements of total demand will be reduced. The study recommends that the government implement effective and cost-effective tax incentive packages to minimize the impact of corona virus pandemics on the informal sector. The government should also step down from paying taxes in critical areas in response to the crisis to support the informal sector and other businesses. 

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