The conference affirmed: “The informal sector can be broadly characterized as consisting of units engaged in the production of goods or services with the primary objective of generating employment and income for those affected. These units generally operate at a low level of organization, with little or no division between labor and capital as factors of production, and on a small scale. Most work activities in this sector are based primarily on casual employment, kinship or personal and social relationships rather than contractual agreements with formal guarantees. could be used to estimate the size of the informal economy. Oduh et al (2008) stated that these methods can be summarized into three approaches, which are microeconomic, macroeconomic and using econometric models.i. Microeconomics is an approach that uses sample surveys based on voluntary responses or tax audits and other compliance methods. The reliability of surveys depends on a number of factors ranging from the methodology of the sampling designs to the instruments used to conduct the survey. The disadvantages of this approach are related to normal