News
How and Why 95 Per Cent of SMEs Die- Elumelu
Tony Elumelu, chairman of Heirs Holdings, has said multiple taxations and levies kill 95 percent of small and medium scale businesses in Nigeria.
Elumelu made this statement while speaking at the Lagos Business School Alumni Association 2017 Alumni Day in Lagos.
He said five percent of the small businesses that survived after one year was a big disincentive to the nation in terms of employment creation.
The entrepreneur said multiple business regulation, multiple taxation and inconsistent government policies affect SMEs competitiveness and their ability to attract capital in their investment climate.
He said despite the multiple taxation, Nigeria remains the lowest in the world with 10 percent tax contribution to gross domestic product (GDP).
“It seems we have a big problem, because, with high taxation and multiple levies, it is expected we should have very high tax revenue,’’ he said.
He said the government should find out the reason for the discrepancy between desired growth and development.
He urged the government to create a more conducive environment that would encourage survival of SMEs in order to reduce the unemployment rate.
“Government doesn’t create jobs, it is the right enabling environment for SMEs that create jobs.”
He urged the government to streamline all taxation and levies across the three tiers of government to avoid the collapse of SMEs.
Taiwo Oyedele, head of tax and corporate advisory services, PwC Nigeria, called for the amendment of the constitution to ensure coordination among the three tiers of government and their agencies.
Oyedele said the multiplicity of government agencies with the same work function was becoming worrisome.
“You don’t need tax incentives for people to do business, we just need to remove the disincentives,” he said.
Anambra State has once again demonstrated its leadership in digital transformation, emerging as one of Nigeria’s top three states in the 2025 e-Governance Report published by the Panorama CIAPS Governance Performance Index (CGPI).
According to the report — a collaborative effort between Nigerian Panorama and the Commonwealth Institute of Advanced Professional Studies (CIAPS) — Anambra ranks alongside Lagos and Enugu as the leading states in adopting and implementing e-governance practices that foster accountability, transparency, and improved service delivery.
In his remarks, Professor Anthony Kila, Director of CIAPS, emphasized the importance of e-governance in shaping how governments interact with citizens. “The centrality of e-governance allows us to assess the performance of state governments in the country. How the government treats the digital world says a lot about them,” he said.
The report evaluated states based on a comprehensive set of criteria, including website security, up-to-date content, public engagement, availability of online services, policy updates, and user accessibility. Anambra’s performance reflects the state’s deliberate investment in digital infrastructure and its commitment to leveraging technology as a tool for inclusive governance.
Reacting to the recognition, the Managing Director/CEO of the Anambra State ICT Agency, Chukwuemeka Fred Agbata, CFA, described the report as a welcome validation of the efforts being made under the leadership of Prof. Charles Chukwuma Soludo, CFR, to reposition Anambra as a liveable and prosperous smart mega-city.
“This is not just about being tech-savvy,” Agbata said. “It’s about using digital tools to create real impact — making the government more accessible, responsive, and transparent. Anambra is building a digital future that works for everyone.”
The CGPI Report recommended that all states intensify efforts to train public servants, maintain digital platforms effectively, and build user-friendly systems that keep citizens informed and empowered. For Anambra, this recognition serves both as a milestone and a motivation to scale new heights.
As the journey continues, Anambra remains focused on setting the pace for e-governance in Nigeria in line with the Governor’s mantra of Everything Technology & Technology Everywhere.
Socio-Economic Rights and Accountability Project (SERAP) has urged the National Assembly to reject the Tinubu administration’s request to borrow $24 billion, warning that the move would significantly deepen Nigeria’s debt crisis.
In a statement posted on its official X account, the advocacy group warned that the proposed borrowing would raise Nigeria’s total debt stock to an estimated ₦183 trillion—an amount it described as “clearly not sustainable and not in the public interest.”
“The National Assembly must immediately refuse to approve the Tinubu administration’s request to borrow $24 billion,” the group said. “The growing national debt is not sustainable and not in the public interest.”
SERAP expressed concern over the heavy burden of debt servicing, which it said is already consuming a substantial portion of government revenue, leaving little room for critical public investment.
Nigeria’s total public debt is projected to surpass ₦180 trillion following the president’s latest loan request. The borrowing plan includes a proposal for over $21.5 billion in external loans, which equates to ₦33.39 trillion at the official exchange rate of ₦1,590 per dollar. The administration is also seeking approval for a domestic bond issuance worth ₦757.9 billion to settle outstanding pension liabilities.
President Tinubu said the 2025–2026 borrowing plan targets key sectors such as infrastructure, healthcare, education, water supply, security, and employment generation. He noted that the plan is also intended to cushion the economic impact of fuel subsidy removal.
The total loan request comprises $21.5 billion, €2.19 billion, and 15 billion Japanese Yen, alongside a €65 million grant. Tinubu assured lawmakers that the funds would be directed toward development projects across all 36 states and the Federal Capital Territory, with emphasis on rail networks, healthcare infrastructure, and poverty alleviation programs.
On pension-related borrowing, the president explained that the proposed bond issuance is aimed at clearing backlogs under the Contributory Pension Scheme. The measure, he added, has already received approval from the Federal Executive Council and is expected to improve retirees’ welfare, restore trust in the pension system, and inject liquidity into the economy.
Nigeria’s public debt has surged in recent years, rising by 48.6% in 2024 to ₦144.66 trillion—up from ₦97.34 trillion in 2023. The Federal Government accounts for 95% of that total.
Firm Reports a 48% Increase in Malicious Packages Threatening Software Supply Chains
Senate Passes Harmonised Report on Tax Reform Bills
FG to Provide High-fibre Internet in 12 Universities by Year End
The Silent Killer of Great Companies: A Guide To Why Your Processes Will Break (and How to Fix Them)
EFCC Witness Admits Writing Off Arik Air’s $2.3M Debt Amid N76Bn Fraud Trial
E-Financial3 days agoEFCC Recovers over N20Bn Stolen by Hackers from 6 Banks in Nigeria
Telecom3 days agoEngr. Ikechukwu Nnamani Receives Two Prestigious @ABoICT Awards
E-Financial2 days agoFidelity Bank Plc Wins 2025 DBN Innovation Award for MSME Support
E-Business2 days agoNigeria Among Hotspots as Kaspersky Warns of Rising Ransomware Threat in Africa
Telecom3 days agoFG to Deploy 80 Percent of 7000 Telecom Towers to North
E-Financial3 days agoPonzi Scheme Operators Risk N10m Penalty, Others- IST Chair
News3 days agoEFCC Recovers Funds, Arrests Suspects in N1.3 Trillion CBEX Crypto Fraud
E-Financial3 days agoUBA Launches *919# Advance Top-Up Feature for Instant Access to Customers