In 2024, Nigeria’s business landscape painted a tale of two worlds: While Dangote Group made history by remitting a record-breaking N402.3 billion in taxes, small business owners across the country faced relentless economic hardship. The declining naira, rising exchange rates, and excessive levies imposed by government agencies left many entrepreneurs gasping for survival.
For Chinedu Okafor, a trader in electronics at Alaba International Market, the past year was a test of resilience. “Every week, we wake up to a new tax or fee. If it’s not an import duty hike, it’s a local government levy. Yet, the cost of goods has doubled due to the exchange rate crisis, and we are told not to increase prices,” he said, frustration etched across his face.
Despite the Central Bank of Nigeria’s (CBN) decision to pause forex intervention, large corporations like Dangote Group continued to navigate the system, expanding their reach while smaller businesses fought for survival. Government agencies ramped up taxes and levies on businesses, while the Federal Competition and Consumer Protection Commission (FCCPC) blocked price adjustments, forcing operators to operate at a loss.
“The government wants revenue, but at what cost?” Hauwa Suleiman, a bakery owner in Kano, asked. With the cost of flour, sugar, and diesel skyrocketing, she was left with little choice but to shut down her once-thriving business. “I pay multiple taxes to different agencies, yet I am expected to keep my prices low. How is that possible?” she lamented.
While Dangote’s massive tax contribution underscored its dominance, the burden of multiple levies on smaller businesses exposed the deep-rooted imbalance in Nigeria’s economic policies. Without urgent reforms, small enterprises—the backbone of Nigeria’s economy—could be forced out, leaving the market in the hands of only a few powerful players.
As entrepreneurs brace for 2025, the question remains: Will Nigeria’s economic policies empower businesses of all sizes, or will the weight of excessive taxation and forex instability crush the nation’s true economic drivers?
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