Why enterprises fail in Nigeria, Osinbajo tinkers with answers

At the maiden edition of the conference on Small and Medium Enterprises (SMEs) and exhibition, Vice President Yemi Osinbajo expressed concern over the high mortality rates of enterprises.

Osinbajo who was represented by the Minister of state for industry, trade and investment, Mrs. Mariam Katagum, at the event on Monday in Abuja, attributed shutting down to tax related issues and expressed the committing to the government’s resolve at reversing the situation.

He explained that the problem of multiple burdened of SMEs coupled with a lack of reliable data for statistical analysis were some of the main issues, including logistics bothering on high transportation costs, lack of quality delivery service and lack of quality infrastructure such as roads.

Osinbajo, who explained federal government’s determination at improving the ease of doing business as well as encouraging tax and fiscal responsibility, said that the presidential enabling business environment council has been doing a lot to address the thorny issue of multiple taxations which had debilitating effect on the businesses.

The vice president said that in order for SMEs to sustain their role of contributing to the mainstream economy, they have to implement effective strategies in all of their business operators, inclusive of logistics.

The federal government, he explained, was building massive investments in railways, power and road infrastructure to address the issues.

In his opening remarks, Mr. Olusegun Awolowo, the Chief Executive Officer of the Nigerian Export Promotion Council (NEPC), said that with the abundance of human and material resources, Nigeria should have nothing to do with poverty.

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