Insecurity, Weak Policies Behind Business Shutdowns, Says ACCI

The President of the Abuja Chamber of Commerce and Industry (ACCI), Chief Emeka Obegolu (SAN), has expressed concern over Nigeria’s challenging business environment, warning that the economy is shrinking as companies continue to shut down nationwide.

Speaking at the 2025 Media Parley on National Security, Ranching Reforms and Satellite Monitoring for an Improved Business Environment, Obegolu revealed that the chamber receives job applications daily—an indication, he said, of growing unemployment and declining economic activity.

“Businesses are closing down. Even as a chamber of commerce, we receive employment applications on a daily basis. What this tells us is that the economy is contracting,” he said.

While commending the Federal Capital Territory Minister for progress at the industrial park, Obegolu noted that the main commercial and industrial base remains largely neglected. He pointed out that the lack of basic infrastructure at the park is a major setback and should not be attributed to insecurity.

“If you visit the industrial park, the FCT minister is doing commendable work, but the core of commerce and industry is being neglected. There are no facilities in the industrial park. That is not an insecurity issue. There is so much government can do to improve the situation for businesses in this country,” he said.

Obegolu also stressed the need for strong political will, clear policies and stakeholder engagement to resolve open grazing challenges. He urged the government to adopt proven ranching models from other countries rather than attempting to reinvent existing solutions.

He warned that insecurity and weak policy implementation have significantly contributed to business closures and rising unemployment, describing the situation as unsustainable. According to him, businesses must be recognised as key partners in national development.

“Government needs to understand that businesses are partners in development. The tax law clearly recognises this partnership, but a partnership requires support. While I do not have exact figures, the losses are enormous and unsustainable. If this continues, something will eventually give,” he cautioned.

On tax reforms, Obegolu noted that financial illiteracy remains prevalent within the business community, prompting the chamber to organise tax awareness programmes for its members. He said views on the new tax law vary, but many believe it has reduced multiple taxation and offers benefits to tax-compliant businesses.

He urged business owners to fully understand their tax obligations, warning that the technical nature of taxation could lead to unintended violations. “Tax does not create hardship; it eliminates multiple taxation. But without a tax consultant, you could easily commit an offence unknowingly,” he said.

Describing taxation as the “next oil” amid declining petroleum revenues, Obegolu explained that government effectively holds a 30 per cent stake in every business through taxation. He said this underscores the need for businesses, through chambers of commerce, to demand accountability in the use of tax revenues.

“If government takes 30 per cent of your profit, it means it owns 30 per cent of every business in Nigeria. Whether listed or not, government is effectively a shareholder. That understanding should compel businesses to ask how tax revenues are being used,” he stated.

Obegolu further expressed concern over rising production costs, noting that there are no immediate signs of stabilisation. He said the chamber is working with multinational, multilateral and national finance institutions to support members, including facilitating access to funding through the Bank of Industry.

However, he observed that many business owners fail to prepare bankable feasibility studies, leading to rejected loan applications. He advised entrepreneurs to engage sector-specific consultants and utilise ACCI’s support services.

He also warned against the politicisation of financial intervention programmes, calling for greater transparency and stronger public-sector support for private enterprises. He urged the government to be open about consultancy projects, particularly in the tax sector, which he described as central to national development.

Raising concerns over data security and national interest, Obegolu said unclear terms and conditions of certain engagements could pose security risks. He called on the government to disclose details of such agreements and explain measures being taken to protect national data and security.

“If a significant portion of national income is handed to a foreign government, it has security implications. We need clarity on the terms of such agreements and assurances on how Nigeria’s data and national interest will be protected,” he added.