Leading banking expert and motivational speaker on entrepreneurial issues, Mr. Tony Elumelu said that 95 percent of Small and Medium Enterprises fold up within a year in Nigeria due to multiple taxes and levies.
The Chairman of Heirs Holdings and United Bank for Africa (UBA), who at the Lagos Business School Alumni Association 2017 Alumni Day in Lagos on the theme: “The Effects of Multiple Government Regulations and Taxation on Business Growth in Nigeria,” argued that only five per cent of the small businesses manage to survive after one year.
To him, the scenario remains a big disincentive to the nation in terms of employment creation.
Continuing, Elumelu said multiple business regulation, multiple taxation and inconsistent government policies affect SMEs competitiveness.
He noted that multiple levies by the government and its agencies affect small businesses’ ability to attract capital in their investment climate.
While lamenting that in spite of multiple taxes and levies in the country, Nigeria remained the lowest in the world with 10 per cent tax contribution to Gross Domestic Product, he averred that
“It seems we have a big problem, because, with high taxation and multiple levies, it is expected we should have very high tax revenue”.
Elumelu therefore called on the government to find out the reason for the discrepancy for desired growth and development, saying there is need to create a more conducive environment that would encourage survival of SMEs in order to reduce unemployment rate.