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Nigeria’s informal sector plays a vital role in sustaining livelihoods, providingemployment for a large share of the population and contributing significantly to everyday economicsurvival. Yet, behind this importance lies a reality shaped by insecurity, weak protections, anddifficult working conditions. Many informal workers operate without stable contracts, socialsecurity, or safe work environments, and these challenges often limit how productive they can be.This study adopts a qualitative documentary research design, relying on secondary data drawn fromscholarly literature, policy documents, and institutional reports to examine how labour insecurityinfluences productivity in Nigeria’s informal economy. Using Marxist Labour Theory as a guidinglens, it explains that issues such as low wages, job insecurity, lack of social protection, and unsafeworkplaces are not random problems but part of a broader system that places workers in vulnerablepositions. As a result, many workers struggle not because they are unwilling or unskilled, butbecause the conditions of their work reduce their capacity to perform effectively. The paper arguesthat improving productivity in the informal sector requires more than short-term or technicalsolutions. It calls for deeper reforms that prioritize fairness, protection, and inclusion in labourrelations. In particular, it recommends expanding social protection coverage to informal workersthrough schemes such as the National Health Insurance Authority (NHIA), alongside simplerpathways for gradual formalization. Ultimately, the study highlights the need to recognize informalworkers as essential contributors to Nigeria’s economy who deserve dignity, protection, andsupport.