Setting up small scale business in Nigeria is difficult -Survey

By Raji Adebayo

As a result of non availability of resources and lack of enabling environment for private sector to thrive, it has been revealed that it is very difficult to set up small and medium scales businesses in Nigeria.

This revelation was contained in a survey conducted by Afro Barometer, a non- governmental organization based in CDD Ghana in collaboration with CLEEN Foundation in Nigeria.

Presenting the result of the survey conducted in the 36 states of the federation including Abuja, the Executive Director of CLEEN Foundation, Ms Kemi Okenyodo and Kathy Addy of Afro Barometer disclosed that Nigeria has seen its wealth withered with little to show in the living conditions of the average human being due to corruption which has always been on the high side.

Addy disclosed that 70 percent of the respondents to the questionnaire on how to start small and medium scale business in Nigeria said that it was very difficult in Nigeria as a result of non availability of resources to start.
According to her, “economic development also depends on employment generation and when 70 percent said it is very difficult to set up small and medium scale business, it is a very serious issue and government should do something fast to put things in order in this regard.

“Government should provide enabling environment for private sector in such a way that there will be employment generation to enhance economic growth and development of the nation, thus, raising the standard of living of the masses”, she added.

Okenyodo disclosed that corruption has eaten deep in all facets of human endeavour in Nigeria, hence, creating bottleneck for both human and economic development in the country.
Disclosing beneficiaries from fuel subsidies in Nigeria, the survey revealed that ordinary citizens do not benefit from it because government officials, wealthy Nigerians and companies that import fuel are not interested in the welfare of ordinary Nigerians.
“The Afrobarometer survey sample in all the 36 states including Abuja showed that the poorest people benefit a bit is 3 percent, the bulk of the benefits went directly to government officials at 52 percent, wealthy Nigerians is 22 percent and fuel import companies is 20 percent”.
The report of the survey went back memory lane that on assumption of office in 1999, former President Olusegun Obasanjo saw corruption as a challenge to his government and established two Anti-corruption agencies, Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices Commission (ICPC), yet there is still a wide perception of corruption in the country especially among incumbent political leaders.

It noted that the most worrisome about the level of corruption in the country is that the power of incumbency makes it very difficult to expose the corrupt acts being perpetrated by people who are in government or who have strong connection with the incumbent government.

Revealing findings of Afrobarometer on EFCC and ICPC, Okenyodo disclosed that 37 percent identified government interference as the major challenge of EFCC while 35 percent also identified government interference for ICPC.

“Corruption by personnel of ICPC is 29 percent, judicial corruption is 14 percent and those who said they do not know is 12 percent while only 9 percent identifying inadequate funds by the agency as the worst challenge.

Source: http://www.mydailynewswatchng.com/2013/05/28/setting-up-small-scale-business-in-nigeria-is-difficult-survey/