By Otori Emmanuel

According to a World Bank report, Nigeria ranked 131st out of 189 countries regarding the ease of doing business. As a result, 80% of new small businesses fail in 3 years. Most of the failures are due to numerous challenges facing the sector which are the parameters that determine the sustainability of small businesses. Small and medium scale (SMEs) are companies with a workforce of fewer than 300 individuals.

Small business enterprises are a sector of the economy that needs the attention of the  Nigerian government and other developing nations due to the role it plays in job creation and economic growth in the nation’s economy.

The Nigerian Economy like other African countries has been facing a fight against unemployment since Independence. The Nigerian government through its economy regulatory agencies have recognized the importance of small business in the provision of employment to the citizen. Because of the importance of small businesses in the Nigerian economy local, state, and federal government recognized the need of stimulating small businesses to provide employment, reduce poverty rate, and improve economic growth.

However, while small business is being acknowledged for its development contribution, it still faces many obstacles that limit their long-term survival and development. Some of the common challenges facing small business owners in Nigeria and recommendations are

1. Access to finance:

Limited access to capital:

Many small business struggle to secure loans or venture capital due to high interest rates, lack of collateral, and stringent landing requirements.

High interest rate:

Nigerian banks often charge high interest rates on loan, making borrowing expensive and reducing profitability for small businesses. 

Recommendation:

Financial literacy programs:

Educating SME owners on financial management, accounting practices, and alternative funding options can help them navigate the financial landscape effectively.

2. Infrastructure Development:

Inadequate infrastructure, including unstable power supply, poor road networks, and limited technology access, hampers the productivity and efficiency of SMEs, leading to increased costs and operational challenges. 

Recommendation:

Government investment:

Prioritizing infrastructure investments to improve power generations, upgrade transportation networks, and expand reliable internet connectivity is essential.

3. Inadequate skills and capacity:

The unavailability of skilled labor, including technical expertise, management capabilities, and entrepreneurial skills, poses a significant challenge for SMEs in Nigeria. The lack of a skilled workforce can hamper growth and innovation. 

Recommendation:

Vocational training and skill development programs:

Collaborating with government and private sectors entities to provide training programs that equip individuals with the skills required by SMEs is crucial.

4. Regulatory and administrative burdens:

Complex regulatory frameworks, excessive bureaucracy, and corruption create barriers for SMEs in Nigeria. Cumbersome business registration processes, obtaining permits, and complying with tax   regulations to the administrative burden faced by SMEs. Navigating the regulatory landscape can be challenging and time consuming for small business owners. 

Recommendation:

Digitalization of government policies:

Implementing e-government initiatives and online platforms for business registration, tax filing, and other administrative processes can enhance efficiency, and transparency, and reduce corruption risks.

5. Other challenges:

Time management:

Balancing the demands of running a business with personal life can be difficult. 

Market fluctuation:

Economic downturns and changing consumer preferences can significantly impact small businesses.

Conclusions

Small business enterprises are seen as an important sector of a nation`s economy which should be adequately given attention. Small business owners face a complex web of challenges, from securing funding and managing cash flow to building strong teams and adapting to market shifts. While these hurdles are significant, they also present opportunities for growth and innovation. Through strategic planning, effective management, and a commitment to continuous learning, small businesses can not only survive but thrive in today’s competitive landscape.

Emmanuel Otori is the Chief Executive Officer at Mangrove Technologies Ltd. He has had experience working on a variety of projects with the World Bank, GiZ, Mastercard Foundation, Central Bank of Nigeria, the Nigeria National Petroleum Corporation (NNPC) etc. He has impacted over 1000 businesses in creating a sustainable business model.

By Jerome-Mario Utomi

Since May 29, 2023, when President Bola Tinubu was sworn-in Nigeria’s oil-bearing region, the Niger Delta has witnessed a fiesta of unprecedented socio-infrastructural developments, coming after decades of neglect and outright abandonment.

The President has clinically changed the Niger Delta hitherto ugly narratives through the Niger Delta Development Commission (NDDC) management team led by Dr Sam Ogbuku and the Governing Board chaired by Barrister Chiedu Ebie.

Recall that the NDDC is a federal government interventionist agency created in 2000 by an enabling Act to offer a lasting solution to the socio-economic difficulties of the Niger Delta region and to facilitate its rapid and sustainable development, and transform it into a region that is economically prosperous, socially stable, ecologically regenerative and politically peaceful – to be acquainted with the nitty gritty of running an interventionist agency that caters for the development needs of the people.

Says a stakeholder, “The early constitution of NDDC Board and management, and assemblage as members, people with unwavering commitment and right pedigree remains President Tinubu’s greatest achievement and leadership gift to the people of the region, particularly, as the commission, under their watch, has continued to fulfill its mandate and deliver sustainable development for the people of the Niger Delta region.

“Under the present board and management, excruciating poverty in the region has drastically reduced, dividend of democracy now gets to the grassroot as the board and management is focusing on people-oriented projects to help address regional disparities, promote economic growth, and improve the quality of life for people in the regions’’.

Indeed, through the NDDC’s transformational programmes and initiatives, which among others, are building Partnerships, Lighting Up the Niger Delta region, Sustainable Livelihood, Improved Youth Capacity and Skills Base, Efficient and cost-effective projects, Project Hope for Renewed Hope, Carbon Emission Reduction, Stakeholder Engagement, Effective and Professional Workforce, Improved Peace and Security, there has been no drought of project delivery under the present board and management as constituted by President Tinubu. It is of a fact that using the present effort in the region, it is evident that the President has done well for the people and the region.

In May 2024, during the celebration of the President’s first year in office, the agency completed and connected a 132/33kv electricity substation in Okitipupa, Ondo State, to the national grid. This project, located at Ode-Erinje in Okitipupa, is designed to provide electricity to over 2,000 communities across five local government areas in Ondo State’s oil-producing region. The project includes a 132KV double circuit transmission line, two 30/40MVA transformers, and 145 electricity towers.

The Okitipupa electricity project is a significant development for the region, as many communities in the area had been without electricity for years. The project is expected to boost economic activities and improve the living standards of residents in the benefiting communities.

Still in May 2024, the commission delivered for public use the Ogbia-Nembe Road project, a 25.7-kilometer stretch with seven bridges and 53 culverts, constructed in collaboration with Shell Petroleum Development Company. This project, which connects 14 communities in Bayelsa State is a significant milestone in the NDDC’s efforts to improve infrastructure in the region.

In 2025, the story is not different as NDDC governing board and management continue to blaze the trail, supporting Mr President’s Renewed Hope Agenda. Within the year under review, it awarded foreign post-graduate scholarships to 200 successful candidates for its 2025 scholarship programme, organized a pioneer Niger Delta Sports Festival which recorded a huge success, commissioned the Ultra-Modern NDDC Cross River State Office and a road network totalling 8,137km in Calabar South and Municipality and flagged off the first phase of distributing handheld tiller machines to farmers.

In Bayelsa State, it commissioned its new State Office Complex in Yenagoa, and the Renewed Hope Multi-Purpose Training Centre, which also hopes to provide succour during the annual flooding in the state, when the people are displaced. In Rivers State, it commissioned for key projects; a police station and a health centre, a recreation centre and a 4.5 Egbelebie road network.

In addition to these galaxy of projects, there is the rock-solid optimism that in a no distant future, the Niger Delta and its people will no longer be a cow that is only good for milking or a goose that is only tolerated because it lays the golden eggs. The prudent manner with which the current board and management are judiciously using the fund at its disposal for sustainable development of the region, I dare say, is heartwarming too, and has attracted for them, effusive praises.

For example, speaking recently at NDDC project commissioning in Bayelsa, the EFCC Chairman, Mr Olanipekun Olukoyede, lauded the commission for its prudent use of recovered funds.

His words: “I have come to identify with good governance, accountability, transparency, and the judicious use of resources, which are within my mandate. Due to the recoveries we have made, some of these projects have become feasible. What I have seen with the management of the NDDC in the last two years convinces me that this management knows what it is doing.”

Olukoyede described the NDDC as a “renewed and transformed government agency.” He assured that the EFCC would do everything to recover all outstanding statutory contributions due to the NDDC from oil companies.

“We have made several recoveries on behalf of the NDDC, and we will not relent in this direction. We are encouraged by the fact that the NDDC is making the Renewed Hope Agenda of the federal government a reality in the Niger Delta region,” he promised.

The Minister of Regional Development, Mr Abubakar Momoh, commended the NDDC board and management for working in harmony to deliver on the mandate given to the organisation by President Tinubu. He declared: “The NDDC is setting standards for good performance in the region. I advise the regional development agencies to emulate the commission in delivering projects to the people.”

The Minister said, “I am pleased that the NDDC is doing very well, which is in line with President Tinubu’s directives. I thank the President and members of the National Assembly for enabling the NDDC to operate efficiently.”

In his remarks, the Chairman of the NDDC Governing Board, Mr Chiedu Ebie, said that the inauguration of the training centre was a reflection of the President Tinubu administration’s desire to transform the Niger Delta region.

According to him, “We thank our stakeholders for their support and encouragement, which has boosted our desire to ensure that we give them what they deserve. We also appreciate the support and partnership of the state governments in several areas”. He stated that the commission was determined to partner with the governors of Niger Delta states to ensure that the oil-producing states enjoy sustainable development.

Also speaking, the NDDC Managing Director, Dr Samuel Ogbuku, restated the commitment of the commission to the mandate given to the commission by the President to change the narrative in Nigeria’s oil-producing region.

Mr Ogbuku affirmed that the commission was engaging all stakeholders to ensure harmony and cooperation in the task of developing the Niger Delta region.

He observed that the Multi-Purpose Training Centre, which was completed in record time, was a partnership between the EFCC and the NDDC, as the anti-crime agency had recovered the funds that facilitated the project’s execution.

As the NDDC board and management continue to excite and warm the hearts of Nigerians, especially Niger Deltans, with life- changing socio-infrastructural projects,  let me commend the courage and foresight of President Tinubu in blessing the Niger Delta with result oriented, farsighted and selfless leadership, through Ebie and Ogbuku. The Niger Delta has never had it this good. Thank you, Mr President, thank you Barrister Ebie, thank you, Ogbuku!

Utomi, a media specialist, writes from Lagos, Nigeria. He can be reached via [email protected]/08032725374

By Diana Tenebe

Nigeria, often dubbed the “Giant of Africa,” possesses immense agricultural potential. With vast arable land and a predominantly agrarian population, the nation could easily achieve food security and become a major player in global food markets. However, this promising future remains largely untapped, held hostage by two formidable challenges: pervasive insecurity and a severe deficit in rural infrastructure. Addressing these twin issues is not merely an economic imperative but a matter of national survival and prosperity.

The escalating insecurity across many parts of Nigeria, particularly in the Middle Belt, has dealt a crippling blow to agricultural productivity. Benue State, famously known as the “Food Basket of the Nation” due to its rich soil and significant contributions to Nigeria’s food production, provides a stark and tragic illustration of this crisis. Recent events in Benue underscore the devastating impact of unchecked violence on farming communities.

In June 2025, horrifying attacks in Yelewata in Benue State claimed the lives of dozens, with reports suggesting the death toll could be over a hundred. Families have been displaced, their homes razed, and their farmlands abandoned. The International Organization for Migration (IOM) reported over 500,000 registered Internally Displaced Persons (IDPs) in Benue State as of 2024, a number that continues to rise.

The economic ramifications of this violence are profound. Farmers, fearing for their lives and livelihoods, are unable to cultivate their lands during critical planting seasons. Crops are destroyed, storage facilities are razed, and market access is severely hampered. A recent study revealed that a one percent increase in insecurity leads to a 0.211% and 0.311% decrease in crop and livestock output respectively in Benue State. The state, which accounts for over 51% of Nigeria’s yam production and is a leading producer of cassava, rice, and soybeans, is witnessing a drastic reduction in its agricultural output. This directly fuels food inflation, pushing millions deeper into hunger and poverty. The once vibrant agricultural landscape of Benue is now characterised by fear, abandonment, and immense losses.

Beyond the immediate human and economic toll, insecurity erodes trust in government and institutions, making it difficult to implement any meaningful agricultural development programs. Farmers are reluctant to invest in their farms due to the uncertainties attributed to insecurities. This cycle of violence and despair starves the nation of its most fundamental resource: food.

However, even if insecurity were to magically disappear, Nigeria’s agricultural sector would still face an uphill battle without significant investment in rural infrastructure. Rural areas, where the vast majority of agricultural activities take place, are largely underserved by basic amenities. Poor road networks make it incredibly difficult and expensive for farmers to transport their produce to markets, leading to significant post-harvest losses. Lack of access to reliable electricity hinders processing and storage, further diminishing the value of agricultural products. Limited access to irrigation facilities means farmers remain heavily dependent on erratic rainfall, making them vulnerable to climate change.

The symbiotic relationship between curbing insecurity and investing in rural infrastructure cannot be overstated. A secured environment provides the foundation for infrastructure development, allowing construction projects to proceed without fear of attack or sabotage. Improved infrastructure, such as good roads, can facilitate quicker deployment of security forces to troubled areas, enhancing response times and potentially deterring attacks.

Investment in rural infrastructure is a catalyst for agricultural transformation. It reduces transportation costs, increases market access for farmers, and encourages value addition through processing. Cold storage facilities, for instance, can drastically reduce post-harvest losses, while improved irrigation systems can boost yields and enable year-round farming. Rural electrification can power small and medium-scale agro-allied industries, creating employment opportunities and diversifying rural economies. Access to information and communication technology, even in remote areas, can connect farmers to market information, modern farming techniques, and financial services.

To unlock Nigeria’s vast agricultural potential, a comprehensive and integrated approach is essential. This begins with establishing a robust security architecture to protect farming communities. The government must prioritize this through increased deployment of security personnel, fostering community-led intelligence gathering, implementing effective conflict resolution mechanisms, and ensuring swift justice for perpetrators of violence. It’s also crucial to address the root causes of farmer-herder conflicts, such as land disputes and resource scarcity, by promoting equitable land governance and establishing designated grazing reserves.

At the same time, massive investment in rural infrastructure is imperative. A national strategy focusing on rural development should prioritize constructing and rehabilitating feeder roads to connect farms directly to markets. This also includes providing reliable electricity through both grid expansion and sustainable renewable energy solutions, developing modern irrigation schemes, and establishing efficient storage and processing facilities. To bridge the significant funding gap in these areas, public-private partnerships should be actively encouraged.

Immediate support for displaced farmers is also critical. For communities, particularly those in states like Benue who have been displaced by violence, urgent assistance is needed to help them return to their ancestral lands and resume their farming activities. This support should encompass providing essential resources such as seedlings, fertilizers, and financial aid, alongside much-needed psychosocial support.

A successful transformation hinges on policy coherence and implementation. There must be a strong political will to effectively implement existing agricultural policies and to create new ones that are responsive to current challenges. This includes vital areas such as land reforms, ensuring easier access to credit for smallholder farmers, and strengthening agricultural extension services.

Nigeria’s agricultural sector is a sleeping giant, capable of feeding the nation and driving economic growth. However, until the twin scourges of insecurity and infrastructural deficit are decisively tackled, its immense potential will remain largely unrealized. The tragic narrative in Benue State serves as a poignant reminder that the path to agricultural prosperity in Nigeria begins with peace and the foundational investments that empower those who feed the nation.

Diana Tenebe is the Chief Operating Officer of Foodstuff Store