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Effect of Street Trading Activities on Urban Land Use in Akure,
Nigeria
Gbenga Enisan, Adejuwon Yinka & Amodu Emmanuel
Department of Urban and Regional Planning, Federal University of Technology, Akure, Nigeria
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000425
Received: 13 October 2025; Accepted: 18 October 2025; Published: 13 November 2025
ABSTRACT
Street trading represents a critical component of the informal economy in Nigeria’s urban centers, yet its
unregulated growth creates significant conflicts with planned land uses. This study investigates the spatial
distribution, impacts, and policy implications of street trading in Akure, Nigeria. Using a mixed-methods
approach that integrates field surveys, key informant interviews, and GIS-based spatial analysis, the study
examines the nature of street trading, its effects on designated land uses, and the challenges faced by planning
authorities. Findings reveal that foodstuffs dominate trade (37.6%), with sidewalks (41%) and road shoulders
(24%) as key trading locations, reflecting strategic entrepreneurial rationality rather than random activity.
Street trading significantly contributes to traffic congestion (28%), land-use conversion, and environmental
degradation, with 84% of surveyed areas reporting conflicts between informal and formal uses. Planning
authorities face resource limitations (55%), weak legal frameworks (15%), and trader resistance (28%) that
hinder effective regulation. Stakeholder perspectives highlight tensions between livelihood security and urban
quality of life, with residents favoring better regulation (41.2%) over elimination. The study recommends
designated trading zones, integration of trading spaces in mixed-use developments, and adaptive governance
frameworks to balance economic inclusivity with sustainable urban development.
Keywords: Street trading, Informal economy, Land use conflict, Urban planning, Akure, Nigeria
INTRODUCTION
Urbanisation in Nigeria has led to the rapid expansion of cities and towns, placing significant pressure on
limited land resources for residential, commercial, institutional, and recreational purposes (Oduwaye, 2009).
This growth, driven by rural-urban migration, natural population increase, and the reclassification of
settlements, has intensified competition for land and increased the complexity of urban land management
(Mabogunje, 1992). In many cases, formal planning and zoning regulations lag behind these demographic and
economic changes, creating a gap between official plans and actual land use on the ground (Agunbiade,
Rajabifard, & Bennett, 2012).
One prominent aspect of urban informality that influences land use patterns is street trading. Common in cities
worldwide, street trading poses a challenge to urban organization. Streets, often described as the "blood
vessels" of cities (Adedeji, Fadamiro, & Adeoye, 2014), serve as vital public spaces that support economic
activities. Street trading refers to the informal sale of goods and services in public areas—such as sidewalks,
road medians, street corners, and open spaces—without formal allocation, planning approval, or legal
authorization (Omoegun & Ukpere, 2017). Adedibu and Okekunle (2006) describe street trading as a survival
strategy for the urban poor, who lack access to formal employment and cannot afford rental space in
conventional markets. Similarly, Owusu, Abrokwah, and Frimpong (2013) identify it as a visible feature of
urban centers, particularly in central business districts, where people display a wide range of goods along
major streets. Olokor (2001) suggests that the inability of many traders to afford market stall rents drives them
to operate informally on streets.
In Nigerian cities such as Lagos, Ibadan, Onitsha, and Abuja, street trading has expanded significantly,
transforming city centers and major thoroughfares into informal commercial corridors (Olujimi, 2009). Akure,
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the capital of Ondo State, mirrors this trend. With formal employment opportunities failing to match
population growth, many residents have turned to informal enterprises, with street trading emerging as a
prominent expression of economic survival. Traders occupy major roads and intersections, reshaping urban
land use and encroaching on road setbacks, pedestrian walkways, and spaces initially designated for public
utilities or transportation infrastructure (Olurin, 2015). This informal occupation distorts planned land use and
creates challenges related to traffic congestion, sanitation, and aesthetics (Nwaogwugwu & Ezeadichie, 2017).
Consequently, street trading is both an essential economic activity and an ongoing planning dilemma, requiring
strategies that balance livelihoods with orderly urban development.
As the capital of Ondo State and a regional commercial hub, Akure attracts migrants seeking economic
opportunities, access to social amenities, and better livelihoods (Oduwaye, 2009). This rapid population
growth has strained urban infrastructure, social services, and formal employment sectors (Olurin, 2015).
Limited industrial development and a narrow formal job market leave many new residents, particularly youth,
women, and unskilled workers, unable to secure stable employment. Street trading, with low entry barriers,
minimal capital requirements, and immediate returns, has become an attractive livelihood strategy (Omoegun
& Ukpere, 2017).
However, the proliferation of unregulated street trading poses significant challenges to Akure’s urban land use
system. Public spaces—including sidewalks, road shoulders, traffic medians, and building setbacks—are often
appropriated by traders, distorting the city’s planned land use (Agunbiade, Rajabifard, & Bennett, 2012). This
unauthorized occupation compromises traffic flow, pedestrian safety, and overall urban aesthetics, particularly
in areas with high trading concentrations along roads such as Oba Adesida Road and Arakale Street
(Nwaogwugwu & Ezeadichie, 2017). Additionally, waste management becomes challenging, with poor
sanitation and refuse accumulation deteriorating urban infrastructure (Adedibu & Okekunle, 2006).
While street trading plays a crucial role in reducing poverty and supporting low-income residents, its
unregulated nature threatens the sustainability and efficiency of Akure’s urban development. Balancing the
accommodation of informal economic activities with the preservation of the city’s land use framework is
therefore essential (Olujimi, 2009). In Akure, street traders often occupy road setbacks, pedestrian walkways,
drainage channels, and public open spaces, causing unplanned alterations in the spatial structure and
functionality of the city (Olurin, 2015). This encroachment disrupts transportation and public utility zones,
contributes to disorganized cityscapes, and places additional pressure on strained infrastructure (Oduwaye,
2009).
The study also examines the specific challenges that street trading poses to urban planners and development
control agencies. These include difficulties in enforcing zoning laws, resistance from traders during relocation
attempts, and political interference in regulatory processes (Omoegun & Ukpere, 2017). Urban planners face
constraints such as limited institutional capacity, inadequate funding, and poor data on informal sector
dynamics, making effective regulation highly challenging (Adedibu & Okekunle, 2006). This paper
investigates the spatial distribution of street trading in Akure, its effects on designated land uses, the challenges
faced by planning authorities, and possible strategies for harmonisation. The study aims to provide insights
into how informal activities can be better integrated into planning frameworks to promote inclusive and
sustainable urban development.
LITERATURE REVIEW
Street trading is a prominent feature of urban informality in many African cities, providing employment
opportunities and affordable goods while simultaneously shaping urban spaces. Scholars have highlighted that
informal economies, including street trading, are vital for urban livelihoods but often generate spatial conflicts
and governance challenges (Bromley, 2000; Skinner, 2008). In West Africa, street trading frequently dominates
urban retail, accounting for more than 40% of city-level commerce (Otieno & Mitullah, 2017).
Street Trading in Nigerian Cities
In Nigeria, street trading is deeply entrenched in the urban economy. Cities such as Lagos demonstrate large-
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scale displacements through mega-projects targeting informal traders (Adewale & Oni, 2019), while in Ibadan,
traders coexist with formal land uses, often occupying road verges, sidewalks, and open spaces (Ojo & Ibitoye,
2021). These cases reveal patterns of rational site selection, where traders prioritize high customer traffic,
accessibility, and low operational costs (Alabi, 2016).
Street trading in Nigerian cities is not only an economic activity but also a socio-spatial phenomenon. Traders
often specialize by ethnicity or commodity: Yoruba traders dominate foodstuffs, while Igbo traders are
prevalent in electronics and cosmetics (Owusu et al., 2013). This pattern reflects adaptive strategies that
maximize profit and visibility while minimizing costs.
Theoretical Frameworks
Several theoretical frameworks help explain the persistence and spatial patterns of street trading:
Informal Sector Theory: Traders operate outside formal systems due to barriers to entry in regulated
markets (Hart, 1973; Chen, 2012). Informal activities provide employment and income for those
excluded from formal labor markets.
Perfect Competition Characteristics: Street traders often compete primarily through pricing, relying
on affordability and flexibility to attract customers (Bromley, 2000).
Urban Land Use Conflict Theory: Informal activities can conflict with planned land uses, generating
congestion, sanitation problems, and aesthetic degradation (Mabogunje, 2015).
While substantial research exists on Lagos and Ibadan, smaller state capitals like Akure remain understudied.
Understanding street trading in these smaller urban centers is crucial, as their informal-formal interactions
differ from mega-cities, often reflecting weaker planning enforcement, rapid population growth, and localized
economic patterns.
Impacts of Street Trading on Urban Land Use
Street trading influences urban land use in multiple ways. Unregulated trading often leads to the encroachment
of sidewalks, road shoulders, pedestrian walkways, and open spaces, resulting in conflicts with planned land
uses (Agunbiade, Rajabifard, & Bennett, 2012). This can disrupt transportation, reduce pedestrian safety, and
degrade urban aesthetics (Nwaogwugwu & Ezeadichie, 2017). Furthermore, clustering of traders in
commercial nodes can increase congestion, strain waste management systems, and deteriorate infrastructure
(Adedibu & Okekunle, 2006).
Empirical studies in Nigerian cities have highlighted these challenges. For example, in Ibadan, informal
trading has reshaped neighborhood morphology, converting residential areas into commercial zones (Ojo &
Ibitoye, 2021). In Lagos, aggressive displacements and mega-projects have attempted to regulate informal
traders but often exacerbate social tensions (Adewale & Oni, 2019). These findings underscore the tension
between livelihood imperatives and urban planning objectives.
Strategies for Managing Street Trading
Several strategies have been suggested for harmonizing street trading with urban planning. These include the
creation of designated trading zones, integration of street trading into mixed-use developments, participatory
policy design, and formalization of trading activities (Obeng-Odoom, 2011; Mitullah, 2017). Evidence from
Ghana and Kenya shows that negotiated relocations, infrastructure provision, and stakeholder engagement can
reduce conflicts and improve urban functionality. These approaches emphasize co-production of urban policy,
recognizing both the economic importance of informal activities and the need for spatial order.
Study Area: Akure, Nigeria
Akure, the capital of Ondo State in Southwestern Nigeria, lies between latitudes 7°15′N and 5°15′E. With a
population exceeding 700,000 (NPC, 2023), the city serves as a commercial and administrative hub. Akure has
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expanded rapidly over the past three decades, transforming from a primarily administrative town into a
diversified urban economy. The city’s land use pattern is characterized by residential dominance, interspersed
with markets, institutional facilities, and transport nodes. In recent years, commercial encroachment has
intensified, particularly along major roads such as Oba Adesida Road, Arakale Road, and Oyemekun Road.
These corridors have become hotspots for street trading due to high vehicular and pedestrian traffic.
Figures 1 & 2: Akure in the context of Nigeria
Source: Department of Surveying & Geo-informatics, Federal University of Technology, Akure, 2024
Street trading in Akure is not only a response to economic necessity but also reflects broader socio-spatial
processes, including weak planning enforcement, rapid population growth, and ethnic specialization in
commodity trade.
METHODOLOGY
The study employed a mixed-methods approach combining quantitative and qualitative techniques.
Data Collection
Surveys: Structured questionnaires were administered to 300 street traders across major trading
corridors. The survey captured socio-demographics, commodity types, location preferences, and
perceived challenges.
Key Informant Interviews: Conducted with planning officials, market associations, and residents to
triangulate survey results.
GIS Mapping: Spatial data on street trading locations were collected using handheld GPS devices and
integrated into ArcGIS 10.8 for mapping hotspots and land use conflicts.
A stratified random sampling method was adopted, stratifying by trading corridor (e.g., Oba Adesida, Arakale,
Oja-Oba). Within each corridor, traders were selected proportionally to ensure representativeness. Quantitative
data were analyzed using descriptive statistics and cross-tabulations in SPSS 25. Spatial data were analyzed in
ArcGIS to generate thematic maps of trading hotspots, land use conversions, and congestion zones. Qualitative
data were coded thematically to extract insights into stakeholder perspectives.
RESULTS
Nature and Spatial Distribution of Street Trading in Akure
Findings reveal that street trading in Akure is a sophisticated informal economy rather than a random or
chaotic activity. From figure 3, foodstuffs account for 37.6% of items sold, followed by clothing (22.9%),
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electronics (16.3%), and cooked food (12.6%). Ethnic specialization emerged, with Yoruba traders dominating
foodstuffs while Igbo traders controlled electronics and cosmetics.
Traders’ choice of location reflects entrepreneurial rationality. About 41.9% prioritize high customer traffic,
32.7% choose proximity to home, while 22.3% cite lower operating costs. Sidewalks (41%) are the most used
trading spaces, followed by road shoulders (24%), traffic medians (19%), and areas around public buildings
(11%).
Figure 3: Type of Goods Sold
Source: Field Survey, 2025
Figure 4: Land Use Conversion in Isikan District, Akure
Source: Field Survey, 2025
Effects of Street Trading on Land Use
Street trading significantly disrupts Akure’s planned land uses. From figure 5, about 28% of respondents
identified traffic congestion as the primary impact, followed by poor sanitation (20%) and aesthetic
degradation (15%). More than 84% of surveyed areas reported frequent conflicts between street trading and
designated uses. The most prominent land use conversion is residential-to-commercial (40%), followed by
residential-to-mixed-use (36%). Specifically, 21.9% of residential buildings have been converted for
commercial trading, while 15.3% of open spaces and 14.2% of road shoulders are occupied (Figure 6).
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Figure 5: Impact of Street Trading Activates on
Source: Field Survey, 2025
Land Use
Figure 6: Land Use as a result of Street Trading Activities in the Study Area
Source: Field Survey, 2025
Challenges Encountered by Planning Authorities
Planning authorities reported significant constraints. The most cited challenge was inadequate resources
(55%), including insufficient staff, technology, and funding. Trader resistance (28%) emerged from economic
survival concerns and political patronage networks that shield traders from enforcement (Figure 7). Weak or
outdated legal frameworks accounted for 15% of responses, while overlapping agency jurisdictions (12%)
created enforcement conflicts.
Figure 7: Regulatory Challenge faced by Town Planning Authorities
Source: Field Survey, 2025
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Traffic Congestion
Missue of Infrastructure & Hazard…
Poor Waste Management & Sanitation
Accidents
poor Asthetics
44%
15%
20%
9%
12%
0% 10% 20% 30% 40% 50%
Conversion of Residential to…
Residential to Place of Worship
Residential to Mix use
Open Spaces to Commercial
45%
9%
36%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Lack of
adequate legal
frameworks
Insufficient
human resources
and funding
Resistance from
traders
Overlapping
jurisdictions
between different
government
agencies
15%
45%
28%
12%
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Stakeholder Perspectives on Street Trading
Stakeholder views reveal deep tensions between livelihood security and urban order. About 70.3% of residents
view street trading as improper, compared to 21.6% who consider it acceptable. Interestingly, 56.5% of traders
themselves admitted their activity is not proper, acknowledging its illegality but emphasizing necessity (Table
1). Traders cited reduced income (46.3%), higher operating costs (24.2%), and limited growth opportunities
(17.8%) as outcomes of regulation. Only 11.5% reported gaining legitimacy from formalization (Table 2).
Meanwhile, 41.2% of residents preferred improved regulation rather than total elimination, reflecting
recognition of convenience despite nuisances.
Table 1: Traders' perspective on Street Trading with Land Use
Factors
Percentage (%)
Not Compatible
Fairly Compatible
56.5%
25.7 %
Very Compactible
14.9 %
Total
100
Source: Field Survey, 2025
Table 2: Residents perspective on Street Trading
Factors
Percentage (%)
Not Compatible
Fairly Compatible
70.3%
21.6 %
Very Compactible
6.1 %
Total
100
Source: Field Survey, 2025
Strategies for Harmonizing Street Trading and Planning
Stakeholders in Table 3, expressed strongest support for designated trading zones (43.9%), followed by mixed-
use developments (24.7%), mobile trading systems (18.1%), and vertical markets (13.1%). Designated zones
are favored for their practicality and provision of infrastructure, while mixed-use solutions are seen as more
sustainable long-term.
Table 3: Effective integrated planning approach
Factors
Frequency
Percentage (%)
Designated trading zones with supporting infrastructure
Mixed-use development incorporating trading spaces
80
45
43.9%
26.9%
Mobile trading systems
Vertical integration in multi-story complexes
33
24
18.1%
13.1 %
Total
182
100
Source: Field Survey, 2025
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DISCUSSION
The findings affirm street trading’s dual role as both a survival mechanism and a disruptive force in Akure’s
urban fabric. Similar to studies in Lagos (Adewale & Oni, 2019) and Accra (Brown, 2015), traders in Akure
exhibit rational location strategies based on visibility, accessibility, and customer flow. This reinforces the
argument that informal trading is not chaotic but represents adaptive entrepreneurship within constrained urban
contexts (Skinner, 2008). However, the extensive land use conflicts and environmental degradation highlight
weak governance and regulatory systems. The 40% residential-to-commercial conversion mirrors trends in
Ibadan where informal trading has reshaped neighborhood morphology (Ojo & Ibitoye, 2021). This suggests
that informal economic logics can override formal planning when enforcement is weak. Stakeholder
perceptions reveal a governance legitimacy gap. Residents and traders both express dissatisfaction with current
enforcement-heavy approaches, echoing findings from Nairobi (Mitullah, 2017), where punitive regulation
exacerbated conflicts. The preference for designated trading zones suggests the need for co-production of
policy between planners, residents, and traders, as seen in Ghana’s “market relocation with negotiation”
models (Obeng-Odoom, 2011). Overall, Akure reflects the broader African urban paradox: informal economies
sustain livelihoods but simultaneously undermine spatial order. Inclusive governance frameworks that balance
these competing needs are urgently required.
Effect of Street Trading Activities on Urban Land Use
The research hypothesis examines the relationship between street trading activities (independent variable) and
urban land use (dependent variable) in Akure, Nigeria.
H₀ (Null Hypothesis): Street trading activities do not have a significant effect on urban land use in
Akure.
H₁ (Alternative Hypothesis): Street trading activities have a significant effect on urban land use in
Akure
The test uses a significance level of α = 0.05 (two-tailed), A significant correlation > critical value or p <
0.05) would reject H₀, indicating street trading significantly affects land use patterns, such as conversions or
conflicts (Table 4). Spearman’s rank correlation coefficient (ρ) measures the monotonic relationship between
the two ordinal variables, with values ranging from -1 (perfect negative) to +1 (perfect positive). The formula
used is:
Spearman’s ρ = 0.555 (moderate positive correlation).
p-value = 4.21 × 10⁻¹⁶ (highly significant, p < 0.001).
Table 4: Spearman Rank Correlation Results
Variable Pair
ρ Value
p-value
Significance (α = 0.05)
Interpretation
Street Trading Level vs.
Land Use Conflict Level
0.555
< 0.001
Significant
Moderate positive correlation
Source: Author’s computation using SPSS v.22
The Spearman’s ρ value of 0.555 indicates a moderate positive monotonic relationship between street trading
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activities and urban land use impacts in Akure. This suggests that as the intensity of street trading increases
(e.g., from low/small-scale to high/large-scale operations), the level of disruption to designated land uses also
rises proportionally, though not perfectly linearly. The correlation strength aligns with the descriptive findings
that high trading concentrations are associated with elevated conflicts and transformations. For instance, areas
with high trading levels predominantly reported high conflicts reflecting systemic encroachments on
transportation and public spaces. The highly significant p-value (< 0.001) rejects the null hypothesis (H₀) and
supports the alternative (H₁), providing statistical evidence that street trading activities have a significant effect
on urban land use in Akure. This significance holds even after accounting for the sample size (n=182), as the
test statistic exceeds the critical value for ordinal data at α=0.05 (approximately 0.14 for large n). The result
underscores the informal sector's role in reshaping urban spaces, consistent with broader literature on Nigerian
cities (Olusa, Omole, & Abereola, 2021; Omoegun & Ukpere, 2017), were unregulated trading drives land use
conversions amid rapid urbanization.
CONCLUSION
Street trading in Akure represents a rational but unregulated informal system. Its spatial distribution reveals
adaptive strategies that sustain livelihoods but disrupt urban order, causing congestion, sanitation problems,
and land use conversions. Planning authorities face systemic challenges of inadequate resources, weak laws,
and resistance from traders, creating a persistent governance gap. Stakeholder perspectives underline the
inadequacy of punitive regulation, with stronger support for inclusive solutions such as designated zones and
mixed-use integration.
RECOMMENDATIONS
i. Integrating Street Trading Hotspots into Urban Planning for Sustainable Economic Development
Mapping trading hotspots and incorporating them into urban plans is essential for enhancing economic
viability while minimizing spatial conflicts. Street trading, though informal, plays a significant role in
providing livelihoods and affordable goods to urban residents. However, the absence of proper spatial
integration often leads to congestion, obstruction of pedestrian walkways, traffic delays, and conflicts with
formal land uses as observed during the field survey. By systematically identifying and mapping areas with
high concentrations of trading activities, urban planners can designate appropriate zones that accommodate
traders without undermining city functionality in Akure. This approach not only legitimizes and supports the
economic contributions of street traders but also promotes order, safety, and accessibility in urban spaces.
Ultimately, integrating trading hotspots into planning frameworks ensures a balance between informal
economic activities and sustainable urban growth in Nigeria.
ii. Enforcing Zoning Regulations and Providing Waste Management Infrastructure for
Environmental Mitigation
Enforcing zoning regulations and providing waste management infrastructure is crucial for mitigating
environmental impacts and aligning street trading with planned land use. Informal trading often results in
littering, poor sanitation, and degradation of public spaces, exacerbating health risks and urban blight in areas
like Akure. Strict enforcement of zoning laws would prevent unauthorized encroachments, while dedicated
waste collection systems such as bins, recycling points, and regular clean-up schedules, would address the
byproduct of high-volume trading. This dual strategy not only protects the environment but also integrates
traders into formal urban systems, fostering cleaner, more livable cities. Thereby, it supports sustainable
development without stifling the economic role of street vendors, ensuring that trading activities contribute
positively to the overall urban ecosystem in Nigeria.
iii. Increasing Funding for Urban Planning, Clarifying Legal Frameworks, and Fostering Authority
Collaboration to Streamline Regulation
Increasing funding for urban planning, clarifying legal frameworks, and fostering collaboration between
authorities are vital steps to streamline regulation of street trading. In Nigeria, fragmented policies and limited
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resources often lead to inconsistent enforcement and bureaucratic hurdles that hinder effective management of
informal economies. Enhanced funding would enable comprehensive planning initiatives, while clear, updated
legal guidelines would reduce ambiguity for traders and officials. Collaborative efforts among local
governments, state agencies, and national bodies would promote coordinated action, minimising overlaps and
disputes. This approach not only improves regulatory efficiency but also builds a supportive environment for
informal traders, driving economic inclusion and orderly urban development in cities like Akure.
iv. Engaging Stakeholders in Policy Design and Implementing Awareness Campaigns to Enhance
Regulatory Acceptance
Engaging stakeholders in policy design and implementing awareness campaigns is key to highlighting the
benefits of regulation and improving acceptance among street traders and communities. Resistance to rules
often stems from a lack of involvement and perceived threats to livelihoods, as seen in field interactions in
Akure where traders expressed concerns over displacement. Inclusive consultations with traders, residents,
businesses, and NGOs during policy formulation ensure that regulations are practical and equitable,
incorporating diverse perspectives. Complementary campaigns through workshops, media, and community
outreach can educate on how formalized trading leads to safer, more profitable operations without eroding
informal vibrancy. This participatory method ultimately fosters buy-in, reduces conflicts, and promotes a
regulated yet thriving street economy that aligns with sustainable urban goals in Nigeria
v. Prioritizing Designated Trading Zones with Infrastructure and Piloting Mixed-Use Developments
for Balanced Urban Sustainability
Prioritizing designated trading zones equipped with infrastructure and piloting mixed-use developments is
essential for balancing economic benefits with urban sustainability. In rapidly growing cities like Akure,
unregulated trading strains infrastructure and limits long-term planning, leading to inefficient land use and
social inequities. By focusing on well-equipped zones complete with shelters, utilities, and security authorities
can consolidate activities, easing pressure on other areas while boosting trader productivity. Pilot mixed-use
projects, blending trading with residential or commercial elements, test innovative models that integrate
informal economies into formal structures. This targeted strategy not only sustains livelihoods and economic
contributions but also advances eco-friendly urban design, ensuring that street trading supports rather than
hinders Nigeria's vision for resilient, inclusive cities.
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