By Kunle Oshobi
Government policies play a crucial role in shaping Nigeria’s business landscape. Over the years, various economic reforms have been implemented to stimulate growth, yet the country continues to grapple with persistent challenges that undermine productivity and investor confidence.
Nigeria’s business environment remains encumbered by multiple structural barriers. High taxes and a complicated tax administration system have become major deterrents to both local and foreign investors.
Endemic corruption erodes public trust, weakens institutions, and discourages fair competition. The inadequate supply of electricity, poor road networks, and limited access to clean water and modern telecommunications significantly increase operational costs for businesses.
Security challenges further complicate matters. The persistent threats of terrorism, kidnapping, and armed robbery compromise worker safety, disrupt logistics, and deter investors.
In addition, trade policies—ranging from import tariffs to customs bottlenecks—often limit market access and increase the cost of doing business.
Despite these obstacles, successive governments have launched initiatives aimed at improving the investment climate.
Some of these include:
Ease of Doing Business Reforms: Streamlining business registration and reducing bureaucratic bottlenecks.
Investment Incentives: Providing tax breaks, grants, and other incentives to encourage investment in key sectors.
Infrastructure Development: Channeling resources into roads, ports, and power to enhance logistics and production efficiency.
Nigeria’s Foreign Minister, Yusuf Tuggar, has often stressed the importance of mutual respect and cooperation in global trade relationships, pointing to Nigeria’s vast internal market and strategic ties with major partners such as China, India, and Brazil.
However, major concerns persist — particularly policy inconsistency and overregulation. Frequent changes in fiscal and trade policies create uncertainty, while excessive regulations increase compliance costs and discourage entrepreneurship.
To foster a truly enabling business environment, the government must prioritize consistency, transparency, and infrastructural renewal, while tackling corruption and insecurity head-on.
A Personal Reflection: The Shoprite Reality
Earlier on Friday, Oct 23, afternoon, I visited the Shoprite outlet at Ikeja City Mall — and what I saw was a painful reflection of Nigeria’s economic decline.
The once-bustling supermarket was nearly empty. There were only a few cashiers, most of them idle. Several shelves were bare, and entire sections of the store were closed off.
As an economist, the sight was heartbreaking. Each empty shelf represented lost jobs, shattered dreams, and declining consumer power.
It brought back memories of the early 2000s, during the Obasanjo/Atiku administration, when Nigeria’s economy was the fastest growing in Africa.
A new middle class was emerging, foreign investment was pouring in, and confidence was high. Shoprite thrived in that era — expanding rapidly from one outlet to over twenty across the country.
Then came 2015 — the year Nigeria’s economic trajectory changed. The same individuals who had opposed the previous administration’s growth policies ascended to power, armed with propaganda and populist rhetoric.
Their policies — punitive taxation, currency restrictions, and inconsistent regulations — stifled businesses, weakened consumer purchasing power, and drove many investors away.
Today, the consequences are plain for all to see. Shoprite’s empty aisles mirror a broader national reality: factories shutting down, jobs disappearing, and purchasing power collapsing.
These outcomes are not accidents; they are the predictable result of policies driven by politics rather than economics.
As 2027 approaches, Nigerians face another defining moment. We owe it to ourselves, our children, and generations yet unborn to rescue the country from those whose policies continue to impoverish the people and suffocate enterprise.
