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8 Sure Causes of Business Failure

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By Adeniyi Ogunfowoke

With the trending economic situation, many businesses have failed. Regardless, many of the causes of business failure can be prevented.

These causes shared by Jumia Travel, the leading online travel agency will help you put together a plan to make sure your business is around for decades.

Lack of experience

Lack of experience is one of the causes of business failure. If you are inexperienced or your management is made up of novices, then your business is likely to fail. When starting a new business, it is advised you get the services of people experienced in that field.

No accountability

Some people throw accountability into the dustbin because they own the business, Hence, there is no difference between their personal money and business money. They simply spend. You must be accountable for any kobo your business spend and makes.

Poor location

You cannot start a business where the service is not needed. Making it classy will not make people patronise you. A good market survey is required before a business location is chosen.

Failure to understand your market and customers

It’s important that you understand your market and customers buying habits. Answering questions about who your customers are and how much they are willing to spend.

Overdependence on a single customer

 If your biggest customer walked out the door and never returned, your organisation or business may be done for. Hence, do not rely on a single customer. Try as much as possible to diversify your customer base.

Copying others

What worked for Mr A may not work for Mr B. Many people have gone into business or made a business choice because they see others doing it and think they can be successful in it if they try. It is good you add your own idea after proper consultation, that will make you different.

Quitting too soon

Giving up too early is the biggest reason why many businesses fail. If you do not persist, research, fail and try and try again, you might not be successful in business.

Inadequate financing

A business will definitely fail if there is no cash flow. Your business needs a steady cash flow to take it through its day to day running.

Adeniyi Ogunfowoke is a PR Associate at Jumia Travel.

Get more hints here ‘Why businesses fail in Nigeria with solutions’

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Nigerians Must Prepare for Another Electricity Tariff Hike—FG

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electricity tariffs

By Modupe Gbadeyanka

The Minister of Power, Mr Adebayo Adelabu, has advised Nigerians and electricity consumers in the country to brace up for another hike in tariff because the federal government is not buoyant enough to continue to bear the cost of subsidy on electricity.

Speaking at a meeting with the Chairmen of the Generating Companies of Nigeria (GenCos) in Abuja, Mr Adelabu said consumers will soon begin to pay cost-reflective tariffs.

At the moment, customers on Band B to E enjoyed subsidised electricity tariffs and pay between N68 per kilowatt per hour and 34 per kilowatt per hour (VAT inclusive), while those on Band A, who consume power for at least 20 hours per day, pay about N225 per kilowatt per hour (VAT inclusive).

At the meeting with the GenCos, the Minister hinted that consumers on Band B downward may have to pay more, which could match the Band A tariff.

“We have to understand that our economy cannot sustain subsidies indefinitely,” Mr Adelabu informed the chairmen without giving a specific time when a new rate will be announced.

During the meeting, the chairman of Egbin Power, Mr Kola Adesina, tasked the government to declare a state of emergency in the power sector, noting that the N4 trillion owed GenCos by the federal government remains a critical threat to their operations.

“This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail,” he stressed.

Also, the chairman of Mainstream Energy Solutions, Mr Sani Bello, warned that “without urgent intervention, the entire power ecosystem could collapse.”

In the same vein, the chief executive of the Association of Power Generating Companies (GenCos), Ms Joy Ogaji, said, “GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic.”

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Jonathan, Kekere-Ekun, Others for Justice Ariwoola’s Book Launch

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CJN olukayode ariwoola

Former President Goodluck Jonathan, Chief Justice of Nigeria Justice Kudirat Kekere-Ekun, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), and several other stakeholders in the legal profession are expected to grace the launch of a book chronicling the judicial career of former Chief Justice of Nigeria Olukayode Ariwoola.

The book, titled Honourable Justice Olukayode Ariwoola, CJN, GCON: Through the Cases, is co-authored by senior lawyers, Dr Charles Mekwunye (SAN) and Ayo Olanrewaju, the Deputy Editor-in-Chief and Chairman of the Editorial Board of the Nigerian Weekly Law Reports (NWLR).

Dr Mekwunye, who spoke in Lagos ahead of the book launch scheduled for May 8 in Abuja, shared that the book provides a comprehensive exploration of Justice Ariwoola’s years of service in Nigeria’s appellate courts, highlighting his significant contributions to the development of the nation’s jurisprudence.

According to Mekwunye, the book critically examines Justice Ariwoola’s judgments, shedding light on his judicial philosophy and impact, this shedding lights on who Justice Ariwoola is through his judicial activities.

He emphasized that Justice Ariwoola, known for his adherence to legal precedent, never delivered a dissenting judgment throughout his career yet advanced legal principles through his consensus opinions.

Explaining this, the Senior Advocate said; “What we found so unique and interesting about him is that he never delivered a dissenting judgement. When we inquired to know why this happened, it was discovered that he had actually taken a minority position many times but other majority voices in judgements at the end of the day deferred to him and his minority position finally adopted as the majority judgement.”

Mekwunye described Justice Ariwoola as a courageous judge who always pursued the path of justice during his time at the Supreme Court.

He compared Ariwoola to legendary jurists such as Lord Denning and Lord Viscount Simmonds, noting that while he is not a reformist like Lord Denning, he also does not possess the ultra-conservative views of Lord Viscount Simmonds but he noted that Justice Ariwoola can best be described as a conservative judge.

Furthermore, Mekwunye highlighted that the book reveals Justice Ariwoola’s character and ethos, making it a valuable reference for judges and aspiring judges, as it discusses many landmark cases he decided.

“His lordship, Justice Ariwoola is a fearless, strong-willed, and incorruptible jurist—a consummate legal expert who has diligently and meticulously provided invaluable service to Nigeria through his judicial pronouncements and administrative competence.

“His vast experience in the study and practice of law, spanning over four decades, has made him a reservoir of knowledge,” Mekwunye stated.

According to him, the book launch which will hold in Abuja on Thursday, May 8 will have in attendance who is who in the legal profession in Nigeria, top judicial officer including the Chief Justice of Nigeria, Attorney-General and Minister of Justice, Chairman of Nigerian Bar Association (NBA) and a host of others.

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SERAP, Nigerian Editors Demand Removal of Cybercrimes Act

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SERAP

By Adedapo Adesanya

The Socio-Economic Rights and Accountability Project (SERAP) and Nigerian Guild of Editors (NGE) have urged President Bola Tinubu to remove the Cybercrimes Act.

The parties claimed that the law targets “journalists, activists, critics and other Nigerians peacefully expressing their views online, and release those in custody across the country under the legislation.”

The groups said, “The use of the Cybercrimes Act to lock up people peacefully expressing their views sends a chilling message to Nigerians that rights won’t get priority under the Tinubu administration,” noting that, “Using laws that don’t conform with constitutional and guarantees and international human rights standards – like the Cybercrimes Act – erodes democracy and the rule of law in Nigeria.”

The statement followed the press conference on Unchecked Injustice: How Authorities Are Weaponising the Cybercrimes Act to Stifle Peaceful Dissent and Media Freedom in Nigeria held Saturday at the Radisson Hotel, Ikeja.

The event was jointly organised by SERAP and NGE to mark the World Press Freedom Day. The press conference was attended by senior members of the media, civil society groups and other stakeholders.

The organisations also said, “Nigerian authorities at all levels should show that they tolerate peaceful dissent and media freedom if the Nigerian people are to have any chance of holding them accountable on their constitutional oath of office, commitments and promises.”

“We are concerned that Nigerian authorities have continued to use the Cybercrime Act to normalize repression of the rights of journalists, bloggers, human rights defenders, opposition politicians, artists and other Nigerians.

“We note that the suppression of the press in recent times takes various forms ranging from extrajudicial to unlawful detentions, disappearances, malicious prosecutions and wrongful use of both legislation and law enforcement,” they added.

Drawing examples, the parties alleged that since the amendment of the Cybercrimes Act in 2024, Nigerian authorities at all levels have consistently used the provisions of the law, including the provisions of section 24 on “cyberstalking” to harass, intimidate, arbitrarily arrest and detain and unfairly prosecute users of social media, activists, and journalists.

“Nigerian authorities at all levels increasingly use criminal defamation laws and other repressive laws to crack down on human rights and peaceful dissent, bringing frivolous lawsuits against journalists, bloggers, human rights defenders and activists.

“We are also concerned about the persistence of threats to journalists’ safety, and the potential chilling effect of strategic lawsuits against public participation (SLAPPs) and harassment, including by security agencies and politicians,” the groups added.

“We urge President Tinubu and his government to publicly call on Nigeria’s state governors, the Nigerian Police Force, the Department of State Services (DSS) to uphold and ensure full respect for the rights of everyone in the country, including journalists, bloggers, human rights defenders and activists.

“We call on President Tinubu and his government, the country’s 36 governors and Federal Capital Territory (FCT) minister to genuinely uphold press freedom, ensure access to information to all Nigerians, obey court judgments, and respect the rule of law,” they noted.

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