By Nchetachi Chukwuajah
The Organised Private Sector of Nigeria (OPSN) says it is under intense strain from multiple taxations, rising operating costs, and policy inconsistencies.
OPSN also called for urgent economic and regulatory reforms, warning that mounting tax and regulatory pressures are threatening the survival and growth of businesses across the country.
This was disclosed by the Chairman of OPSN, Jani Ibrahim, at its strategy meeting on Friday, January 30.
Ibrahim stated that Nigeria’s private sector drives employment, innovation, and economic growth, with small and medium-sized enterprises accounting for over 90 per cent of businesses and more than 80 per cent of employment, yet continues to struggle with high input costs, exchange rate volatility, energy constraints, logistics inefficiencies, and declining consumer purchasing power.
He said, “These pressures are forcing many firms to scale down production, delay investment decisions, and cut jobs, posing risks to national competitiveness and economic stability.”
The OPSN chairman urged governments at all levels to treat private sector survival as a national priority by ensuring policy coherence, affordable access to finance, and smarter regulation.
He said cumbersome business registration processes, overlapping regulatory inspections, and duplicative compliance demands contribute significantly to the increase in the cost of doing business.
On taxation, Ibrahim said, “Excessive and uncoordinated tax demands from multiple agencies have become a major burden for businesses, particularly SMEs and manufacturers.”
He called for reforms that would simplify the tax system, eliminate arbitrary levies, and ensure fairness and predictability.
In his speech, the National President of the Nigeria Association of Small and Medium Enterprises (NASME), Dr Abdulrashid Yerima, described ongoing tax reforms as a welcome step, saying they have the potential to ease long-standing challenges facing MSMEs.
Yerima noted that small businesses have been subjected to overlapping taxes imposed by different tiers of government, as well as unauthorised collections by non-state actors in years past, which he said have eroded profitability and discouraged expansion.
He added that a clearer and more predictable tax framework would enable MSMEs to reinvest, grow their operations, and create jobs, but stressed that effective monitoring and faithful implementation are critical to achieving these outcomes.
According to the President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, who supported the reforms, warned that poor implementation, especially by sub-national governments, could undermine their benefits.
Meshioye cautioned that inconsistent application of tax laws across states would create uncertainty for investors and weaken confidence in the business environment.
He called for continuous engagement with relevant authorities to curb abuses by illegal tax collectors and ensure uniform enforcement of approved tax provisions.
The MAN president stressed that only a transparent, predictable, and well-implemented tax regime can restore business confidence, attract investment, and reposition Nigeria’s manufacturing sector for sustainable growth.
