Starting a small scale business in Nigeria is becoming more and more challenging by the day. In spite the fact that SMEs are the driving force of Nigeria’s economy and provides on average, 50% of Nigeria’s employment, and 50% of its industrial output, successive governments has continued to make things difficult for SMEs, especially in the starting stage.
Imagine a situation where a person decides to start a small scale business due to lack of job opportunities, instead of getting government’s support; they are rather confronted with unfavourable policies that inhibits growth. How can a Small Scale Enterprise that is still in its starting stage survive in a state where beginners do not have access to tangible loans but are rather forced to pay Federal Taxes, State Government Taxes, Local Government Taxes, and so on. It doesn’t end there. They are also subjected to pay a very high fee for advertising their business on billboards or signages in the front of the office they rented with their own hard-earned money. To make matters worse, they also have to pay TV taxes, Furniture Taxes, etc.
I am not trying to speak against the importance of paying taxes. I am only speaking against multiple taxations. The most devastating part of this whole thing is the manner some of these taxes and levies are collected. In Lagos where I reside, local revenues and taxes are collected by touts who are popularly called ‘alaye’. If they barge into your office and you don’t have money to pay, in some cases, they may beat you up, seize your properties or lock up your office.
Story was told of how a pregnant woman was beaten to death by revenue collectors in Porthacourt, because she refused to pay a particular tax twice. There are so many similar stories in different part of the country.
If Nigeria truly wants to overcome poverty and unemployment, they must create favourable policies that will encourage Small Scale Enterprises to thrive. Considering the fact that Nigeria lacks basic infrastructures such as power, good roads and water supply, which makes it difficult for most SMEs to thrive, there is a need for the government to give tax holidays to beginners who are still struggling to stabilize their business. Starting a small scale business in a country like Nigeria comes with great challenges which includes hunting for customers, paying of rents, paying of workers’ salaries, purchasing PMS or diesel on a regular basis, and so on. So if a beginner is also forced to pay exorbitant taxes, they are likely to become incapacitated, and consequently remain small instead of growing.
nwekesamuelchinonso 