Business Owners Decry High Costs Of Energy, Insecurity, Multiple Taxes

Business owners decry high costs of energy, insecurity, multiple taxes. Mr Achakpa identified soaring inflation and currency depreciation as factors squeezing profit margins.

Small business owners have called on the federal government and other relevant stakeholders to implement more effective and accessible interventions to ease rising operating costs, inflation and policy inconsistencies nationwide.

Some of the business owners told journalists in separate interviews on Sunday in Abuja that the situation had weakened revenue generation across key sectors of the economy.

Godwin Achakpa, a business owner in the Federal Capital Territory (FCT), lamented the tough operating environment, saying rising energy and power costs, as well as logistical bottlenecks, were significantly hindering productivity.

Mr Achakpa identified soaring inflation and currency depreciation as factors squeezing profit margins and forcing many small businesses to shut down.

He said limited access to affordable credit remained a critical constraint, with operators often facing high interest rates from commercial banks.

According to him, inconsistent government policies and regulatory bottlenecks have created an unpredictable business environment, thereby worsening operations across the country.

Agnes Okoro, a business owner operating in the Karu/Nyanya axis, described insecurity as a major disruption to commercial activities and a factor weakening local economies.

Ms Okoro, who also complained of multiple taxation, noted that despite some exemptions for small companies, many still faced overlapping taxes and levies.

“The business community is calling on the government to ensure effective implementation of announced relief programmes. Intervention funds should be easily accessible and transparently disbursed without political bias.

“There is also the need for improved infrastructure, particularly power supply, transportation and digital connectivity, to enhance competitiveness,” she said.
She called for a more stable and predictable policy environment to build business confidence and support long-term planning.

Alfred Moses, a member of the Nigerian Association of Small and Medium Enterprises (NASME), said the association’s objective was to co-ordinate and promote Micro, Small and Medium Enterprises (MSMEs) in Nigeria.

Mr Moses said the current economic hardship was creating a highly challenging operating environment that threatened the survival of MSMEs, with many businesses struggling to stay afloat and some shutting down.

“Economic hardship continues to take a heavy toll on small businesses, increasing operating costs and weakening revenue generation across key sectors.

“Poor electricity supply has forced many businesses to rely on generators and solar power, while fuel price hikes have significantly raised daily operating expenses.

“High inflation and exchange rate volatility have increased the cost of raw materials, particularly imported inputs, and complicated financial planning for small enterprises.

Tax Law

“Declining purchasing power has also reduced consumer spending, leading to lower sales volumes and shrinking profit margins,” he said.
Mr Moses added that access to finance remained a major challenge, as commercial banks classified SMEs as high-risk, demanding high interest rates and stringent collateral.

He emphasised the urgent need for intervention by government and other stakeholders to ensure a more stable business environment, calling for stronger and more frequent engagement between the public and private sectors.

Meanwhile, the president of the Abuja Chamber of Commerce and Industry (ACCI), Emeka Obegolu, has called for policy consistency, MSME protection and private sector-led growth to strengthen Nigeria’s economy in 2026.

Mr Obegolu said that consistent policies and private-sector-friendly reforms were critical to reducing the cost of doing business and achieving sustainable economic development.

He described MSMEs as the backbone of the Nigerian economy and stressed the need for stronger protection and predictable reforms to encourage investment and business expansion.

According to him, high energy costs, rising interest rates and limited access to finance remained key constraints faced by enterprises.

He warned that poorly managed reforms could result in business closures, job losses and capital flight, urging the Federal Government and the FCT Administration to create a more enabling and predictable business environment.

Mr Obegolu noted that Abuja had evolved into a major commercial and investment hub requiring stronger infrastructure and regulatory support, adding that the chamber would remain committed to supporting small business owners.

He reaffirmed ACCI’s commitment to constructive engagement with the government to promote ease of doing business and inclusive economic growth.

In a related development, Jumoke Oduwole, minister of industry, trade and investment, reiterated the ministry’s commitment to strengthening technical cooperation and knowledge exchange to support MSMEs, improve standards and build industrial capacity.

Ms Oduwole said the federal government had rolled out a series of initiatives to support MSMEs and cushion economic hardship, including grants, low-interest loans, job creation incentives and improved access to essential business resources.

According to her, the initiatives are aimed at easing economic hardship and fostering a more resilient business environment.