General
Taking Nigerian Small Businesses to Paradise
In the last 40 years, small business owners and entrepreneurs have been receiving greater recognition as drivers of economic growth all over the word. It has become a given that, to achieve long-term economic growth and prosperity, participation from entrepreneurs is very important. Small businesses have contributed to job creation, economic growth and poverty reduction.
As we have seen in Nigeria in the last two decades, entrepreneurship is a driving force within the economy because of entrepreneurs’ innovative nature, among other factors. In developed economies, corporations and large capital significantly determine the extent of scientific, technical and production potential.
In third world countries with a market economy system, small enterprises are the most common, dynamic and flexible form of business life. In Nigeria, they contribute in stabilising the political climate. Yet not every small business will flourish
Why Small Businesses Fail in Nigeria, a seven-chapter book written by Ayodele Ajayi, provides sufficient facts why entrepreneurs in the country pack up after a while. In knowing the hidden pitfalls, as outlined by the author, the writer creates a veritable platform for small businesses to reinvent themselves and blossom.
Ajayi educates all that there is a probabilistic indicator to show that not all businesses in Nigeria surpass their first anniversary. This sounds like a spoiler alert, but the author links this to the inability to overcome teething problems and other avoidable mistakes.
Talking from experience, Ajayi, whose entrepreneurial journey has been like a yo-yo experience, says his substantial investment and unwavering effort in the paint business didn’t yield the much-expected dividends when he set out. Why Small Businesses Fall in Nigeria, therefore, seeks to empower the reader and the entrepreneur with a weapon to navigate the intricacies of Nigeria’s business environment. It is also beneficial for big businesses.
In the first chapter, Ajayi paints a realistic picture of Nigerian entrepreneurship beyond the hype on some success stories. “When considering starting a small business, one of the first decisions you must make is whether to operate online, offline, or a combination of both,” writes Ajayi.
He points out that the reality of entrepreneurship is far less glamorous than many anticipate, part of which includes supporting the lives of team members and other partners involved in the business. He recommends that, before setting out, you must study the business environment of the country, because the reality of doing business in Nigeria differs with many factors he outlined in the book (read the book).
Part of the reasons for business failures include inappropriate location, hence: “A solution to that problem may be to change the location to a more strategic area with a higher demand for the business’s products or services. The structure of the business can also make or mar it.” Another reason is faulty operation. Ajayi stresses the importance of learning from others, for nobody knows it all.
The author zeroes in on the pitfalls that crumble businesses in Nigeria. Understanding and answering the purpose of your business, he says, will help the entrepreneur navigate and avoid the landmine. Expertise is also important. The author makes a case for implementing effective corporate governance.
Explaining in detail the common reasons for small business failures in Nigeria, the author highlights inadequate market research, poor management of business resources, poor cash flow management, wrong expansion, poor marketing and sales skills.
Offering practical steps to follow to navigate these pitfalls, the author advises business owners to be disciplined, detach themselves from the businesses, plan and execute well, learn continuously, build a strong network and stay financially savvy. He encourages entrepreneurs to guide against having a single product or service in Nigeria, develop excellent customer service, and adapt to market trends. Unlike Easy Taxi that crumbled in Nigeria, the author cites Mega Chicken as one that has successfully stood out in a competitive food market.
The fourth chapter of the book emphasises on financial management. “Financial management is a necessary skill for every business, because it deals with how you account for your money,” says the author. who goes on to furnish us with basic financial concepts that relate to small business in Nigeria.
These include budgeting, cash flow management, investment management, debt management, financial planning, risk management, bookkeeping. The book furnishes the reader with strategies for securing funding and managing debts effectively. It arms us with the right resources for maintaining financial support, literacy and mentorship in Nigeria.
Ajayi, in the fifth chapter, teaches the power of marketing and sales. This is very important. You may have a good product yet it is not selling. Like he has done throughout the book, he offers practical steps for creating a customer-centric approach and building brand loyalty, including but not limited to personal service, reward system and getting feedback from customers.
The concluding part of the book x-rays the demands of leadership. Without reading this book, you may not appreciate the gems in the publication. I recommend this book to not only businessmen anywhere in the world but those aspiring to have multiple streams of income in Nigeria.
By Adedapo Adesanya
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it recorded a 30 per cent reduction in gas imbalance on the country’s Western Network following the conclusion of its first-half 2026 Nigerian Gas Network Reconciliation (NGNR) Workshop.
The workshop brought together gas transporters, suppliers, shippers and off-takers to reconcile gas volumes traded between January and June 2026, while introducing a Network Entry/Exit Point Measurement Infrastructure Audit Template aimed at improving metering accuracy and accountability across the gas transmission network.
In a communiqué issued after the workshop, the authority said participants also reviewed the performance of the Nigerian Gas Transmission Network, assessed progress on major pipeline infrastructure projects, and received updates on the ELPS Gas Shrinkage Factor and Hydraulic Modelling Project.
Discussions focused on addressing metering gaps, improving network visibility through Supervisory Control and Data Acquisition (SCADA) integration, and enhancing system reliability ahead of the commissioning of the Ajaokuta-Kaduna-Kano (AKK) Pipeline System.
The workshop adopted key resolutions, including the execution of outstanding Network Exit Agreements, mandatory submission of measurement audit templates and closer collaboration among industry stakeholders to improve network pressure management.
Speaking at the closing session on behalf of the authority’s chief executive, Mr Rabiu A. Umar, the Director of Transportation Systems and Networks, Mr Joseph G. Musa, said the biannual reconciliation exercise had become critical to promoting equitable gas transactions, transparency, investor confidence and efficient network operations.
Mr Musa noted that since the NGNR process was introduced in 2023, it had significantly improved gas measurement, strengthened regulatory compliance through consequence management, reduced operational imbalances and contributed to a more reliable domestic gas supply.
The workshop concluded with participants adopting the reconciled H1 2026 gas volumes, reaffirming the authority’s commitment to a transparent, efficient and reliable domestic gas market.
By Modupe Gbadeyanka
An investment that supports growing food and agriculture companies across Africa that strengthen agricultural value chains has been made by Swedfund.
The organisation is putting down about $12 million to strengthen climate resilience in African food systems through the Acumen Resilient Agriculture Fund II (ARAF II).
By improving access to markets, finance and essential services, these companies help smallholder farmers become more resilient to climate and economic shocks.
Over 30 million smallholder farmers operate across Sub-Saharan Africa, accounting for 80 per cent of all farms and producing 70 per cent of the region’s food (IFAD). Yet many face limited access to finance, quality inputs, reliable buyers and market information. At the same time, they are among those most exposed to climate change and weather-related shocks, which threaten harvests, incomes and food security.
The investment has an ambition to reach around four million smallholder farmers through ARAF II’s portfolio companies. It also aims to meet the criteria of the 2X Challenge, which promotes investments that support women’s economic empowerment.
ARAF II invests in businesses that address key gaps in agricultural value chains, from improving market access and reducing post-harvest losses to expanding financial and digital services for farmers. By helping these businesses grow, the investment aims to improve productivity, strengthen local value chains and increase the resilience of food systems.
Swedfund invests alongside other development finance institutions and investors to help mobilise long-term capital for businesses that often struggle to access financing despite their potential to strengthen food security, climate resilience and economic development across Africa.
“Climate change is already affecting the livelihoods of millions of smallholder farmers across Africa. Investing in businesses that improve access to markets, finance and agricultural services helps farmers strengthen their resilience, increase productivity and build more stable incomes. That is essential for more resilient food systems,” the Investment Director of Food Systems and Strategic Investments at Swedfund, Ms Helen Hagos, said.
By Adedapo Adesanya
The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to order a probe into the alleged diversion, disappearance and misapplication of more than N6.79 billion in public funds within the Nigeria Police Force (NPF) and the Federal Ministry of Police Affairs.
The grave allegations are documented in the latest Annual Report of the Auditor-General of the Federation published on September 9, 2025.
SERAP said, “Anyone suspected to be responsible—including contractors, companies and public officials implicated in the report—should be promptly prosecuted, while all missing public funds, firearms and ammunition should be fully recovered, secured and properly accounted for.”
In the letter dated August 1, 2026, and signed by SERAP deputy director, Mr Kolawole Oluwadare, the organisation said: “The Auditor-General’s findings suggest a grave betrayal of the public trust and raise serious concerns about corruption and the management of public funds, police exhibits, firearms and ammunition.”
SERAP said: “The report also raises serious concerns over missing firearms and ammunition, the unauthorised use and release of police exhibits, failures to properly account for exhibits, and the insecure storage of firearms, creating significant risks to public safety and national security.”
According to the group, “The diversion of funds meant for policing, abandoned security projects, missing firearms and ammunition, and the misuse of police exhibits undermine the operational effectiveness of the Nigeria Police Force, weaken public confidence and may contribute to Nigeria’s worsening insecurity.”
The letter, read in part: “The report documented numerous alleged financial irregularities within the Nigeria Police Force and the Federal Ministry of Police Affairs, including payments for projects that were never executed, abandoned contracts, inflated contract costs, and irregular procurement.”
“The report also documented unretired cash advances, unsettled insurance claims, payments for services allegedly not rendered, and other suspected diversion and misapplication of public funds amounting to over ₦6.79 billion.”
“The allegations also include missing firearms and ammunition, the unauthorised use and release of police exhibits, failures to properly account for recovered firearms and other exhibits, and the insecure storage of firearms, posing serious risks to public safety and national security.”
“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal action to compel your government to comply with our request in the public interest.”
Some of the others include: N499,875,500.00 for the construction of Police College Phase II, Bashar, Plateau State; N12,931,000.00 for the rehabilitation of Block B, Department of Logistics and Supply (Works) building, Garki; N111,635,864.64 for the construction of 12 one-bedroom transit camp units and rehabilitation of the administration block at the NPF Pre-retirement Skills Acquisition Centre, Kudana, Kaduna State; N4,011,627.89 inserted as taxes to inflate a contract; N1,938,299,452.00 for 14 ongoing projects that were abandoned; N5,050,000.00 in monetary exhibits released without proper authorisation; N112,026,424.00 for outstanding allowances paid to officers to cover 2020 liabilities; and N6,000,000.00 as annual payment to the Inspector General of Police’s Senior Special Assistant on Revenue and Tax Matters.
Others include N10,080,000.00 as cash advances for the provision of office equipment and accessories for the NPF Database Management Centre; N438,066,845.73 for the supply of bulletproof vests, ballistic helmets and procurement of a Styr Punch Vistar troop carrier; N18,000,000.00 for the training of women in cosmetology and provision of empowerment kits in Ondo Central Senatorial District, Ondo State; N258,989,999.75 for the procurement of 10 JAC patrol vehicles for NPF outpost stations in Kano State; N30,853,250.00 as security allowances for personnel attached to the Ministry of Police Affairs; N681,406,593.18 for the settlement of insurance claims through insurance brokers; N1,628,108,434.18 for outstanding insurance policy liabilities for 2020/2021; N57,484,515.30 for the procurement of video cameras, customised umbrellas, gift bags and customised towels for the Nigeria Police Force Public Relations Office; N7,760,409.56 in withholding tax and value added tax that was not deducted from contracts awarded.
