Connect with us

Markets

SMEs: Multiple Taxation, Dearth of Infrastructure Hurting Our Businesses

Published

on

Evaluation of Public Accountability and Tax Culture among Tax Payers in Nigeria
  • SMEs: Multiple Taxation, Dearth of Infrastructure Hurting Our Businesses

Small and Medium Enterprises (SMEs), particularly those on the Ikorodu axis of Lagos State, have cried out that excessive taxation and dearth of supportive infrastructure, among other harsh operating environment-related challenges, are taking a huge toll on their businesses.

Some of the small business owners in Ikorodulamented that constant and multiple demands for taxes by various agents of the government were hurting their profitability and threatening the sustainability of their businesses.

For instance, Logistics &Facility Manager, Hallel Engineering Company, Mr. Adeolu Akinpelu, said his company was faced with the challenge of double taxation by the government under various names and categories.

Akinpelu said there was a need for the government at all levels to harmonise the various taxes to be paid by different categories of businesses, to avoid the current situation where businesses, particularly SMEs, are forced to pay the same taxes but with different sub-heads.

He argued that multiplicity of taxes was having debilitating effects on SMEs by cutting into their profit margin. Besides, those who could not cope with the excessive taxation have been forced to either close shop or relocate to other climes where tax regimes are SME-friendlier.

To the CEO of Zaiphie Transformation, a firm of make-up artists, Miss Ifeoma Ikechukwu, the challenges facing SMEs in Ikorodu area of Lagos go beyond tax. She said the perception of Ikorodu as being in the backwaters of civilisation due to lack of infrastructure was a pain in the neck of small business owners.

The beauty artist said: “The price of makeup and hair products increases daily, and it is affecting my business. But, unfortunately, people see Ikorodu as an undeveloped area and insist that our products must be cheap without recourse to the fact that we all buy from the same market,”

Miss Ikechukwu lamented that the location of her business in Ikorodu was a major disincentive as customer patronage was low because of the poor infrastructure in the area, such as regular supply of electricity, potable water and good roads, among others.

She, therefore, called on the state government to improve the infrastructure in the area in order to boost SMEs and ultimately, create jobs.

Similarly, Managing Director, Marthridge Stitches, Mrs. Martha Aimuemojie, complained that because of poor infrastructure in Ikorodu, many of her customers are unable to locate her business address.

According to her, the difficulty by prospective customers in locating her business address affects the price of her goods and services. She expressed regrets that location determines the price of goods and services, whether one is good or not in the business.

Another dealer in beauty products, who gave her name only as Mrs. Orakwe, however, said the hurdles before SMEs in Ikorodu cannot be divorced from the general economic downturn plaguing the nation following the collapse of oil prices at the international market.

Orakwe said the economic recession that gripped the country since the crisis started has forced many people to re-order their priorities, as many Nigerians now prefer to feed their families first before thinking of buying beauty products and indeed, other products and services.

Apart from the economic downturn, Orakwe also lamented that the seeming gradual disappearance of the apprenticeship culture from the SME landscape was not helping matters. She said nowadays most apprentices want to make money rather than learn from their masters.

She added that apprentices learn the trades now are cajoled to do so. She decried the lazy and poor work culture among the youth, and called for a paradigm shift.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Continue Reading
Comments

Energy

How Nigeria’s National Power Grid Collapsed Ten Times Within 9 Months 

Published

on

power project

The national power grid has again collapsed, leaving many Nigerians in total darkness.

Investors King can authoritatively report that this is the tenth time the power grid will be disrupted this year alone.

For this recent collapse, the grid, reportedly lost power generation around 1:39 pm on Tuesday.

Information revealed that power generation was 2,711 megawatts as of 1:00 pm, having previously peaked at 3,631 MW.

Earlier, power generation peaked at 3,934.77 MW around six o’clock in the morning.

However, between 2 pm and 3 pm, hourly generation dropped to 0.00 MW.

The Transmission Company of Nigeria confirmed that the national grid experienced a partial disturbance at about 1:52 pm on Tuesday, 5th November 2024.

TCN spokesperson Ndidi Mbah mentioned that the recent collapse was due to a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Mbah pointed out that data from the National Control Centre revealed that a part of the grid was not affected by the bulk power disruption.

TCN however indicated that work work is in progress to restore power.

She explained that engineers are already working to quickly restore bulk power supply to the states affected by the “partial disturbance.”

Mbah noted that presently, bulk power supply has been restored to Abuja at 2:49 pm, maintaining that “we are gradually restoring it to other parts of the country.”

She apologized to Nigerians for whatever inconvenience the collapse might have caused.

Findings by Investors King revealed that the grid had collapsed at ten different times between March and November, this year.

Times the grid collapsed included February 4, March 28, April 15, July 16, two times in August 5, October 14, October 15, twice in October 19 and now today, November 5.

Continue Reading

Energy

Darkness Falls Again: TCN Explains Latest National Grid Collapse

Published

on

The Transmission Company of Nigeria (TCN) has provided an explanation for the latest National Grid collapse, which occurred on Tuesday, November 5.

Tuesday’s collapse, marking the 10th in 2024 alone, left Nigerians in total darkness.

Recall that the National Grid collapsed twice in October, sparking concerns among Nigerians.

Reacting to the latest collapse via a statement on Tuesday, the General Manager of TCN Public Affairs, Ndidi Mbah, disclosed that the collapse happened at 1:52 pm.

The GM revealed that the grid collapse was caused by line and generator trippings.

Mrs. Mbah said, “TCN states that the national grid experienced a partial disturbance at about 1:52 pm today, 5th November 2024.

“This followed a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Data from the National Control Centre (NCC) revealed that a part of the grid was not affected by the bulk power disruption.

Mbah disclosed that operators are working to restore power in affected states, adding that power was restored in Abuja.

She explained, “TCN engineers are already working to quickly restore bulk power supply to the states affected by the partial disturbance. Presently, bulk power supply has been restored to Abuja at 2:49 pm, and we are gradually restoring power to other parts of the country.”

Apologizing to Nigerians, TCN said, “We sincerely apologize for any inconvenience this may cause our electricity customers.”

Investors King, in an earlier report, revealed that in an attempt to address the persistent collapse of the national grid, the Nigerian Electricity Regulatory Commission (NERC) announced that discussions were underway with Independent Operators to take over the management of the grid.

Continue Reading

Energy

Nigeria Partners with ECOWAS and Morocco to Launch $26B African Gas Pipeline

Published

on

Gas-Pipeline

The Nigerian government, in partnership with the Economic Community of West African States (ECOWAS), Morocco, and Mauritania, has announced plans to advance the $26 billion African Atlantic Gas Pipeline project to drive economic growth across Africa.

This development was revealed on Monday, November 5, by Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), at the ECOWAS Inter-Ministerial Meeting on the Nigeria-Morocco Gas Pipeline Project.

Speaking at the meeting, which was attended by ECOWAS Ministers of Hydrocarbons and Energy as well as representatives from Morocco and Mauritania, Kyari stated that, once completed, the project will connect 13 African countries.

Represented by Olalekan Ogunleye, NNPC’s Executive Vice President for Gas Power & New Energy, Kyari said this will be Africa’s largest pipeline project.

Ogunleye confirmed that progress has been made with the front-end engineering design completed, the phase two study finalized, and work ongoing for environmental and social impact assessments as well as land acquisition and resettlement.

He emphasized NNPC’s readiness to execute the project: “Today, we come together to make significant progress in the African Atlantic gas pipeline project, which is a transformative initiative connecting at least 13 African nations in shared prosperity and development. These achievements underscore our capability to deliver this landmark project, supported by strong regional collaboration.”

Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), described the project as a game-changer for the regional economy, stating, “We stand at a critical juncture where these agreements can reshape our energy landscape, strengthen our economies, and uplift our people.”

He also highlighted that the project will increase Africa’s presence in the global gas market, noting that “the agreements demonstrate a strong commitment to advancing hydrocarbon and energy trade across ECOWAS, enhancing access to natural gas in West Africa, and expanding Africa’s global footprint in the gas market.”

Continue Reading

Trending