Multiple taxation is one of the greatest challenges facing small and medium businesses in Nigeria, according to the Small and Medium Enterprises Development Agency of Nigeria.
SMEDAN Director-General Dikko Radda revealed this in Abuja during the India-Nigeria Cultural Conference organised by the All India Universities Alumni Association, Abuja Chapter.
According to Radda, “The challenges confronting the MSMEs are actually the same globally. But because of our peculiarities in Nigeria, we have some major ones. One of them is multiple taxation and multiple levies. We have taxes from the local governments, the state and also the Federal Government.
“Another challenge is inadequate access to funds, manpower, market and technology. In India, the major challenge is access to the international market. But our MSMEs in Nigeria are not globally competitive. Here in Nigeria, lack of power is a major problem and it increases the cost of production.”
He added that, “There are presently about 37.1 million MSMEs in Nigeria. That is huge. Their contribution to the Gross Domestic Product is about 48.7 per cent, while their contribution to export is about 7.2 per cent. That is to tell you how significant they are to our economy.
“Let’s look at unemployment. About 1.6 million graduates join the labour market from our universities. The unemployment rate in 2016 was 35.2 per cent and it increased to 40 per cent in 2017. But the government is trying as much as it can to create an enabling environment for the graduates to start small and medium businesses.”