Economy
Here Today, Gone Tomorrow: 60 Causes of Small Business Failure in Nigeria

By Timi Olubiyi, PhD
Despite the significance of small and medium enterprises (SMEs) to the economy and national development, Africa has a high rate of business failures and short-lived businesses.
In Nigeria SMEs account for 48 per cent of the national gross domestic product (GDP), 96 per cent of businesses, and 84 per cent of employment in the country, according to a PricewaterhouseCoopers (PwC) report.
In contrast, due to the country’s dire economic circumstances, at least 1.9 million SMEs have been lost since 2017, according to the report, yet business closures persist at an alarming rate.
Why do so many businesses fail so quickly, be they structured or unstructured? It can be attributed to many challenges, and this is the focus of this piece.
In the context of this article, the word “failure” refers to any kind of closure, including bankruptcy, liquidation, stopping further losses, giving up and starting a new business, and/or closing by choice (like retiring early or shutting down).
According to the author’s observations, small businesses, especially those with one to nine staff, are prevalent, mostly unstructured, and largely operating informally throughout the country.
Convenience shops and grocery stores, dry cleaning and laundromat services, taxi services, trucking and transportation businesses, beauty salons, local restaurants, and several other small businesses operate with no data sets or registration databases.
For instance, in Lagos State, most of these small businesses are overwhelmingly dominated by people moving in from other states of the country, largely due to the fact that barriers to entry into the business ecosystem are low, and there is no compulsion for registrations or certifications, and the start-up capital is usually low.
The worry is that many of these business operators are inexperienced and pay no attention to business structure, technology, skill sets, accountability, or the importance of business continuity. Therefore, business failures keep getting worse without any known help.
In fact, it is hard to see how the sector can make a big difference or impact in creating jobs, growing the economy, and reducing poverty. Business failure is the last stage of the business life cycle. However, it is so prevalent that it happens within the first five years of a significant number of SMEs in Nigeria and the rate is alarming.
Even though the environment is a key part of how easy it is to do business, it is still harsh and hard in the country, with or without post-COVID-19 consequences. Truly, there are many problems with the economy’s supply chain and infrastructures, such as the price of diesel, problems with the foreign exchange market, and regulations that hurt businesses.
Many of the business failure factors are frequently categorized as “poor management or lack of access,” though the failure predictors are in two broad categories: internal factors (controllable) and external factors (uncontrollable).
Without a systematic outline and identification of the many challenges faced by small businesses, here are the most common business failure factors in the country that operators need to pay attention to low quality or low level of education and qualification of operators and workforce; lack of manpower, loss of seasoned personnel and management due to social mobility and relocation (Japa), resulting in skill shortages within the business and inability to attract and retain new highly qualified personnel; lack of an appropriate corporate governance structure and organogram in the case of the few structured SMEs; Customer dissatisfaction due to a low product or service quality; poor customer experience and declining patronage.
A variety of funding issues are also relevant to business failures, including no or low business capital or profitability, revenue erosion (in some cases referred to as undercapitalization), insufficient cash flow or cash reserve, and excessive reliance on borrowed funds (high leverage).
Poor accounting practice, teeming, and lading can also result in business failures. The absence of adequate marketing channels, poor market knowledge, outdated services and products, and not being in touch with customer needs (for illustration, dealing in Nokia 3310-related accessories or phone sales when the market demand is for Android phones).
Poor and negative customer relations; poor pricing techniques; lack of innovative drive, ignoring product or service innovations and new ideas; ignoring competitors’ pressure and offerings; resource mismanagement; undue family influence and control in the business operations can kill businesses.
Further to this, poor internal communication, lack of free flow of business information, and fraudulent acts by employees, including legal tussles, can also be contributory to the failures.
Others are ineffective and reckless leadership tendencies, a high cost of running the business, huge overhead, and an inability to control expenses, inappropriate response to new external and/or internal challenges, lack of strategic and business planning (competitor analysis, marketing analysis, risk analysis, opportunity and threat analysis). under-estimating or over-estimating risks in the marketplace, among others.
There is also the failure to recognise and capitalise on new market opportunities, intense competition, and adherence to ineffective competitive formulas or strategies. Another is being outwitted by competitors or even former employees; and relying too heavily on one or a few clients’ patronages are also attributable.
Leadership tussles and conflicts within management, business owners, and/or power struggles cannot be ignored. Failure to provide value for money can make customers disgruntled and avoid patronage.
Poor inventory management, and failure to differentiate products and services in a highly competitive environment. and the strong bargaining power of buyers can cause business failure. In the era of globalization, e-commerce, and high adoption of technology, any old equipment, machinery, or technology issues can make a business fail. Low or no online visibility, inadequate technological adoption, or failure to take advantage of new technological advances can also adversely affect businesses.
Largely unforeseen mishaps can happen, failing to learn from this or one’s errors, and the repetition of such errors and poor decision-making can have huge consequences. Overlapping responsibilities in the case of one-man businesses where the owner claims to be an expert in all departments and business functions can make the business fail. Where there is no distinction between ownership and management and there is an excessive concentration of authority, including excessive administrative rule imposition on subordinates and employees, it can ruin a business.
From the government side, unanswered macroeconomic challenges, economic instability, multiple taxation, no ease of doing business, regulatory hurdles and multiple permits, and a harsh economic climate are just some of the negative factors. Poor infrastructure, bad roads, erratic power supply, limited access to government grants and support, and much more, particularly power and the cost of generating alternative power are also some factors.
Further to this, the rising costs of doing business, inflation, irregular policies, the judicial system where disputes linger for several years, and political influence and interest, including corruption, are all part of the factors attributable to business failure.
Even common macroeconomic factors like recessions, insecurity, government debt, exchange rates, and high-interest rates, are just a few. The power (electricity) situation in Nigeria has been a great cause for concern for businesses, investors, and citizens at large and is equally significant in the overall performance of the economy.
These infrastructure gaps and weak macroeconomic factors can be blamed on the depressed economy and prevalence of business failure in Nigeria. The turn-around time at the ports, and congestion on the roads, are all imperative causes of business failures in the country and cannot be controlled by entrepreneurs and SME operators.
Consequently, it poses a big risk to businesses unless the government intervenes decisively and gives the needed policy responses. This is the big prayer of all SMEs and entrepreneurs in the country.
Above all, the culture of not seeking expert opinion, advice, and consultation for problem-solving is the overall bane of SME operators or owner-managers.
One or more of the above-mentioned factors are warning indications of business failure. SMEs must pay close attention to these indicators as soon as they appear, in order to avoid a crisis. Maintaining an appropriate structure, adequate capital, and having contingency plans are some of the best strategies to control and reduce business failure that these factors can cause. Further prerequisites for small business success may just be the next article from the author. Good luck!
How may you obtain advice or further information on the article?
Dr Timi Olubiyi is an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University Nigeria. He is also a prolific investment coach, author, seasoned scholar, Chartered Member of the Chartered Institute for Securities & Investment (CISI), and Securities & Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: drtimiolubiyi@gmail.com, for any questions, reactions, and comments.
The opinions expressed in this article are that of the author- Dr Timi Olubiyi and do not necessarily reflect the views of others.
Economy
Nodepay Airdrop: A Strategic Move or Just Another Token Giveaway?

By Anastasia Chabaniuk
The crypto landscape is increasingly cluttered with airdrops, but Nodepay’s approach appears more calculated than most. By integrating with major exchanges like OKX and offering a browser extension, Nodepay is building an ecosystem rather than simply distributing tokens. The TU website analysis shows that projects with comprehensive utility frameworks surrounding their airdrops tend to retain value 60% longer than pure marketing-driven distributions.
Nodepay’s multi-phase airdrop ties token distribution directly to platform growth metrics and user engagement. Unlike many competitors who simply drop tokens to generate temporary hype, Nodepay has implemented a feedback loop where airdrop participation drives actual product adoption.
The integration with OKX provides Nodepay instant credibility, while the browser extension strategy mirrors successful models previously implemented by established projects like Brave.
What Is the Nodepay Airdrop and How Does It Work?
The Nodepay airdrop represents a calculated token distribution event where eligible users receive free tokens based on specific qualifying activities and wallet interactions. Unlike random giveaways, Nodepay has implemented a tiered qualification system that rewards users based on their engagement level with the platform’s ecosystem.
To qualify, users must complete several actions:
- Install and actively use the Nodepay extension for a minimum period
- Complete KYC verification through the official platform
- Hold a minimum threshold of cryptocurrency in compatible wallets
- Engage with the Nodepay ecosystem through transactions or staking
Cryptocurrency strategist Marcus Chen explains, “Nodepay’s qualification requirements serve dual purposes—they filter for genuine users while simultaneously encouraging platform familiarity.” The distribution formula reportedly weighs early adopters and consistent users more heavily, creating an incentive for sustained engagement rather than speculative participation.
The airdrop will be distributed across multiple phases, with tokens being released gradually to prevent immediate selling pressure. Integration with major exchanges like Nodepay OKX ensures that recipients have immediate liquidity options while maintaining token price stability through controlled distribution mechanisms.
Key Benefits of the Nodepay Airdrop for Investors
The Nodepay airdrop offers several strategic advantages for investors beyond the immediate token acquisition. By participating in this distribution event, investors position themselves on the ground floor of a potentially transformative payment ecosystem.
Primary benefits include:
- Early Ecosystem Access: Participants gain privileged positioning within the Nodepay network before wider adoption occurs
- Potential Governance Rights: Token holders may receive voting privileges on future platform developments
- Network Effect Advantages: Value appreciation correlates with user growth, benefiting early participants
Integrating the Nodepay extension and major exchanges like OKX creates a seamless experience for token management post-airdrop. Unlike many projects that struggle with liquidity, the OKX partnership potentially provides immediate trading options for participants seeking to optimize their positions.
For strategic investors, the airdrop represents an opportunity to diversify cryptocurrency holdings with minimal capital risk while maintaining exposure to innovation in the payment processing sector.
Is Nodepay’s Airdrop a Smart Growth Strategy?
Analyzing Nodepay’s airdrop from a strategic perspective reveals a multifaceted approach to ecosystem development. Unlike many token distributions focusing solely on creating short-term price action, Nodepay’s methodology appears designed for sustainable growth metrics.
The strategy leverages several key principles:
- Community Building: By requiring active participation through the Nodepay extension, the project filters for engaged users rather than opportunistic participants
- Product Adoption: The airdrop incentivizes direct interaction with core products, generating valuable user feedback before wider release
- Market Positioning: Partnership with established exchanges like OKX provides immediate credibility and liquidity pathways
From a network economics perspective, this approach creates positive feedback loops – each new participant increases platform utility, potentially attracting additional users. The requirement to use the Nodepay extension ensures that participants experience the actual product value proposition rather than merely speculating on future worth.
However, the actual test will be post-distribution retention metrics. Successful growth strategies convert airdrop participants into permanent ecosystem contributors through genuine utility and continuing engagement incentives.
Potential Risks and Concerns About the Nodepay Airdrop
Despite promising aspects, the Nodepay airdrop carries several risks that potential participants should carefully evaluate before commitment. The cryptocurrency landscape is littered with failed projects that initially generated significant excitement through token distributions.
Critical concerns include:
- Regulatory Uncertainty: Token distributions increasingly face regulatory scrutiny in multiple jurisdictions
- Dilution Risk: Future token releases could significantly impact value for early participants
- Adoption Barriers: The requirement to use the Nodepay extension could limit mainstream access
- Exchange Dependency: Over-reliance on specific partnerships like OKX creates potential centralization vulnerabilities
The project’s emphasis on the Nodepay extension also introduces technical risk factors, as browser extensions represent potential security attack vectors if not properly audited and maintained. Additionally, some participants report compatibility issues with specific operating systems when installing the required extension.
While the partnership with exchanges like OKX provides legitimacy, it also creates a dependency on third-party infrastructure that remains outside Nodepay’s direct control.
How to Claim the Nodepay Airdrop and Maximize Returns
Successful participation in the Nodepay airdrop requires a methodical approach that maximizes qualification potential while positioning for optimal post-distribution outcomes. The process involves several key steps:
- Preparation Phase
- Install the official Nodepay extension from authorized sources only
- Connect to supported wallets with appropriate transaction history
- Complete KYC verification if required (see Nodepay TU website for requirements)
2. Qualification Activities
- Conduct eligible transactions through the Nodepay platform
- Participate in OKX-Nodepay integrated features
- Maintain consistent activity throughout the qualification period
3. Post-Distribution Strategy
- Consider staking options for additional yield
- Participate in governance to enhance token utility
- Monitor market conditions for optimal position management
Anastasiia Chabaniuk – author and financial expert at Traders Union, advises: “The participants who typically extract the most value from airdrops like Nodepay’s are those who approach them as ecosystem entry points rather than one-time windfalls.”
For comprehensive guides on maximizing qualification scoring, users should reference the official Nodepay documentation and technical update bulletins. Community resources offer additional insights into optimizing participation strategies and post-claim management techniques.
Conclusion: Is Nodepay’s Airdrop Worth Your Attention?
The Nodepay airdrop represents an interesting case study in token distribution strategies that attempts to balance marketing objectives with genuine ecosystem development. While many airdrops in the cryptocurrency space ultimately deliver limited long-term value, Nodepay’s structured approach and integration with established platforms like OKX suggest more substantial foundations.
For potential participants, the decision ultimately depends on individual investment objectives and risk tolerance. Those willing to engage actively with the platform through the Nodepay extension and complete the required qualification steps may find value beyond the immediate token acquisition. The partnership with OKX potentially provides an immediate utility that many airdrop projects lack.
However, prudent participants should maintain realistic expectations and understand that even well-designed airdrops carry inherent risks. The most successful approach combines opportunistic participation with careful evaluation of the underlying project fundamentals, team credentials, and market positioning.
As with all cryptocurrency projects, diversification remains essential – the Nodepay airdrop should represent just one component of a balanced digital asset strategy rather than a primary investment focus. By approaching the opportunity with clear objectives and appropriate due diligence, participants can maximize potential benefits while managing downside exposure.
About the Author
This article was written by Anastasia Chabaniuk. She brings 17 years of expertise in finance and content marketing to her advisory role. She firmly believes that investors and new traders thrive when equipped with reliable information and expert guidance.
Economy
British Savannah Energy Completes Acquisition of Sinopec Assets in Nigeria

By Adedapo Adesanya
Savannah Energy Plc, a British independent energy company, has announced the completion of its acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC).
SIPEC’s principal asset is the 49 per cent non-operated interest in the Stubb Creek oil and gas field which is operated and 51-per cent owned by Universal Energy Resources Limited, a Savannah affiliate company.
According to the company, the SIPEC acquisition increases Savannah’s reserves and resources base by approximately 30% from 151 million barrels of oil equivalent (MMboe) to 197 MMboe.
The deal is highly accretive to the group net asset value management, with an estimated value of $194 million on a pre-debt basis.
There is material production upside as Savannah now intends to commence an 18-month expansion programme which is anticipated to increase Stubb Creek Field gross production from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.
The acquisition adds 227 Bscf of 2C gross gas resources at Stubb Creek Field, securing significant additional long-term feedstock gas available for sale to Accugas customers.
Savannah said the transaction was fully funded through a drawdown under a $60 million reserve-based lending debt facility arranged by the Standard Bank of South Africa Limited.
At completion, the cumulative consideration paid was approximately $35.1 million, inclusive of approximately $19.5 million of cash available to SIPEC, with $2 million in deferred cash consideration payable in eight quarterly instalments post-completion.
Stubb Creek Field, located in Akwa Ibom State, Nigeria, is a producing oil field with considerable undeveloped, non-associated 2C gas Resources. Oil produced at Stubb Creek field is processed through production facilities onsite and then exported to the Qua Iboe terminal via a 25-km pipeline.
The field was converted to a 20-year petroleum mining lease, PML20, in accordance with the Petroleum Industry Act 2021 and effective from Dec. 1, 2023.
Speaking on the deal, Mr Andrew Knott, Chief Executive Officer of Savannah, said: “We are delighted to announce the completion of the SIPEC acquisition, the achievement of one of our core business priorities for 2025.
“Our focus at the Stubb Creek Field will now turn to progressing the expansion project, which we expect to increase production by almost three quarters throughout 2025/26.
“I look forward to updating shareholders on this in the coming months, as well as on the progress we make towards achieving the other core business priorities we outlined to shareholders earlier this month.
“I would like to thank the Government of Nigeria for the support that they have shown our Company in approving the SIPEC acquisition and I extend a warm welcome to the SIPEC employees joining Savannah today.”
Economy
Renaissance Finally Completes Acquisition of Shell Onshore Assets

By Adedapo Adesanya
Renaissance Africa Energy has finally completed the acquisition of the entire 100 per cent equity holding in Shell Petroleum Development Company of Nigeria (SPDC).
This is according to a statement on Thursday by the spokesman of Renaissance Africa Energy Holdings, Mr Tony Okonedo who said the acquisition was completed on the same day.
“This follows the signing of a sale and purchase agreement with Shell in January 2024, and obtaining all regulatory approvals required for the transaction. Going forward, SPDC will be renamed as ‘Renaissance Africa Energy Company Limited,” the statement added.
The deal had hit a snag last year October because the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) raised issues about the ability of the firm to takeover the $1.3 billion asset.
However, it was then approved in December.
Renaissance Africa Energy Holdings is a consortium consisting of four successful Nigerian independent oil and gas companies: ND Western Limited, Aradel Holdings Plc, First Exploration and Petroleum Development Company Limited and the Waltersmith Group, each with considerable operations experience in the Niger Delta, and Petrolin, an international energy company with global trading experience and a pan African outlook.
Speaking on the deal, Mr Tony Attah, the Managing Director/CEO of Renaissance noted that “We are extremely proud to have completed this strategic acquisition. The Renaissance vision is to be ‘Africa’s leading oil and gas company, enabling energy security and industrialisation in a sustainable manner.’
“We and our shareholder companies are therefore pleased that the Federal Government has given the green light for this milestone acquisition in line with the provisions of the Petroleum Industry Act.”
“We extend our appreciation to the Minister of Petroleum Resources, the CEO of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the GCEO of Nigeria National Petroleum Company Limited (NNPCL) for their foresight and belief, paving the way for the rapid development of Nigeria’s vast oil and gas resources as a strategic accelerator for the country’s industrial development,” he added.
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