Nigeria is widely recognized for its strong entrepreneurial culture, with millions of citizens relying on small and medium-sized enterprises (SMEs) for income and employment.
Despite this resilience and creativity, small businesses across the country are collapsing at an alarming rate.
Rising inflation has significantly increased the cost of production, including rent, transportation, raw materials, and fuel.
Unreliable electricity forces, many business owners depend on generators, further raising operating expenses and shrinking profit margins.
Access to finance remains another major obstacle, as bank loans often come with high interest rates, strict collateral demands, and complicated application processes that discourage small entrepreneurs.
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Multiple taxation and excessive regulation also place heavy burdens on SMEs. Business owners frequently face harassment from government agencies and informal tax collectors, making it difficult to operate sustainably.
Insecurity worsens the situation, disrupting supply chains, limiting market hours, and discouraging investment, especially in rural and high-risk areas.
Poor infrastructure, such as bad roads and unstable power supply, continues to undermine productivity and competitiveness.
Meanwhile, government intervention programs meant to support small businesses often fail due to poor implementation and limited reach.
The collapse of small businesses leads to job losses, rising poverty, and a weaker economy. To reverse this trend, Nigeria must adopt supportive policies that promote affordable financing, simplified taxation, improved infrastructure, and a safer business environment.