The Impact of Urban Regulation on Informal Settlements in Nigeria

The paper evaluates the effect of regulation on the number of households living in informal settlements. Initially, a profile of the regulatory climate and urban informal settlements in Nigeria is presented using Lagos State as an example. Subsequently, econometric analysis is carried out using the MIMIC model to estimate the impact of determinants and the size of the informal sector in each area. Given the results of the analysis, it is argued that since households are mobile within the country, an increase in regulation and enforcement in a region decreases the size of informality in that region. However, informality in regions with less regulation is higher.