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Transcript/ScriptNigerian Small Businesses
HEADLINE: Crucial to Nigerian Economy, Small Businesses Struggle to Stay Afloat
TEASER:
PUBLISHED AT: 8/17/23at 6:45 p
BYLINE: Gibson Emeka
CONTRIBUTOR:
DATELINE: ABUJA, NIGERIA
VIDEOGRAPHER: Emeka Gibson
VIDEO EDITOR:
SCRIPT EDITORS: DLJ, Reifenrath
VIDEO SOURCE(S): VOA Original
PLATFORMS: WEB __ TV X RADIO X
TRT: 3:14
VID APPROVED BY: Jepsen
TYPE: TVPKG/RADIO ))
((INTRO))
[[According to the International Labor Organization, small- and medium-sized businesses account for the majority of enterprises and employment in Nigeria. But about 80 percent of these businesses fail within the first five years. In this report from Abuja, Gibson Emeka explores why these businesses fail and what the Nigerian government is doing to help them achieve long-term success. Amy Katz narrates.]]
((NARRATOR))
It has been eight years since Owinzeegba Aidy started his graphics design and printing business in Abuja, the Nigerian capital. Despite the high demand for his services, he has trouble staying afloat.
Aidy says several factors have hampered his business growth.
((Owinzeegba Aidy, Small-Business Owner, (male, English)))
"Electricity has been the biggest challenge, then apart from the fact that there is no light, the fuel prices and all that that has also surrounded this whole factor has been challenging, and then supplies of materials...We don't get any support, we don't get any loans. We try to access loans by ourselves. We don't have that opportunity to get grants from anybody, like it has been very difficult trying to struggle through."
((NARRATOR))
Nigeria is home to nearly 37 million small and medium-sized enterprises, representing about 96 percent of all businesses there.
According to the International Labor Organization, these businesses contribute 48 percent of Nigeria’s annual gross domestic product.
But according to the Small and Medium Scale Enterprises Development Agency of Nigeria, about four-fifths of these businesses fail before they turn five.
Isaac Botti, an Abuja-based economist, blames the situation, in part, on haphazard government policies.
((Isaac Botti, Nigerian Economist)) ((Male in English))
"There are actually a number of programs that the government has rolled out in the last four to five years to help promote SMEs [small and medium enterprises] in Nigeria, but again, lack of monitoring. For me, the implementation of these programs is an issue. So, we have it on paper that the government has rolled out certain programs to help SMEs. Who is tracking the implementation of that program? To what extent are these programs effective?"
((NARRATOR))
Tax expert Emmanuel Agboloko said the complex tax system in Nigeria is another burden that hurts these businesses.
((Emmanuel Agboloko, Tax Expert)) ((Male, in English.))
"For instance, a small and medium enterprise may be based in Niger state but may have an operational office in Abuja, which is the Federal Capital Territory. The Niger state government will be expecting the taxes from that small and medium enterprises, the FCT will be expecting the tax. So, it becomes a multiple tax system that is very difficult to resolve."
((NARRATOR))
Besides streamlining the tax system, Agboloko says there are a number of steps the government could take to encourage small businesses to grow.
((Emmanuel Agboloko, Tax Expert.)) ((Male, in English.))
"Giving tax incentives to small and medium enterprises or waiver. They should be given the number of years they can operate without paying tax, and then, they encourage them to go into production and grant them capital. We have the Bank of Industry, Bank of Agriculture, they should be encouraged to take soft loans to such enterprises."
((NARRATOR))
Economists believe that if given sufficient support, small and medium-sized busineses could hold the key to bringing down Nigeria’s high unemployment rate and easing chronic and widespread poverty.
Gibson Emeka in Abuja, Nigeria, Amy Katz, VOA News
NewsML Media TopicsArts, Culture, Entertainment and Media
NetworkVOA
Location (dateline)in Abuja, Nigeria
Embargo DateAugust 17, 2023 20:10 EDT
BylineGibson Emeka VOA News
Brand / Language ServiceVoice of America - English
