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The study examined the challenge of improving the conditions of informal sector activities in Lagos Island, Nigeria. The study objectives include; the identification of informal sector activities in the study area, examining the socio-economic characteristics of people involved in the activities, examination of the condition in which they operate, identifying the factors of involvement in informal sector activities in Lagos Island and assessing the problems of managing the sector activities in the study area. The survey was carried out using stratified random sampling to ensure a fair representation of the population on each selected streets. A sample size of 177 was selected using 10% of all informal sector activities on selected streets in the study area .Hence,177 questionnaires were administered to respondents in the study area from which 152 questionnaires were recovered and used. The study reveals that there is a relationship between employment in the informal sector and formal sector unemployment, illiteracy, environmental degradation and the rampant violation of planning regulations. Recommendations of this study include; embarking on baseline studies to obtain vital information on informal sector activities with the view of formulating policies and programmes that will enhance the effectiveness of both the informal sector and planning administration, ,provision of infrastructure such as markets and designated open spaces to enhance and promote the activities of the secto,organizing informal sector workers into co-operative societies through which they could be reached easily for support and assistance, and finally, discouraging the over-concentration of informal activities in already built-up areas.
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