A cross section of entrepreneurs in the FCT have lamented the effect of multiple taxation and harsh operating environment on small businesses, describing them as choking and frustrating.
They said the taxation which often come from the federal government, FCT Administration (FCTA), and the Area Councils’ agents add to the frustration of running a small business in Nigeria, thus demanding a stable and supportive environment for small businesses.
The entrepreneurs registered their concerns at the opening ceremony of newly constructed water factory, La-Jen spring water, in Abuja.
They highlighted that multiple taxation, high cost of electricity, and other unfriendly operating environment have greatly affected small and medium businesses, which are the major employers of labour and drivers of the economy.
The Managing Director, La-Jen spring water, Titus Jeremiah, who led the campaign, highlighted the importance of tax waver and other friendly operating environment for small and medium businesses as a catalysts for economic growth and transformation.
He confirmed that relevant regulatory authorities like the NAFDAC have completed their verifications and certification of the facilities, premises, and the products, adding their verdict was on the positive.
“We don’t intend to drop our standards afterwards. We are committed to maintaining quality and ensuring that every bottle of water that leaves this facility meets the expectations of consumers. Our water is clean, colourless, odourless, and thoroughly filtered. The whole idea is to ensure people have access to safe and affordable drinking water, and that’s a responsibility we take seriously,” he said.
Barrister Bassey Offiong of the Baptist Convention, Abuja, suggested a tax waiver for such businesses for, at least, two or three years, to allow it the time to stabilize.
He made reference to developed economies where SMEs get tax exemptions for up to five years so they could stabilize. “But here, barely six months in, local and state tax agents, and even the federal tax agents will start knocking at your gate. This is not right, and it must stop. The government should allow small businesses to breathe and grow.
“You saw how the power went out during our tour. That means extra cost to run generators. In the end, this cost is passed to the consumer, thus making local products more expensive than imports. If the water were imported from China, it might even be cheaper, and that is a shame.”
Offiong commended the bold step to venture into manufacturing despite the high cost of business, and urged Nigerians to take action to further develop the country, rather than mere talk on the need to move from consumption to production.
“It takes a lion’s heart to go into this kind of business. Most people would rather invest in real estate or hospitality where returns are quicker. But production is what truly grows the economy.”
A senior pastor in Baptist Convention, Abuja, Tom Takpatore, told journalists at the event that the product is of a global standard, and appealed for more government support in terms of tax waver and conducive working environment for such businesses to thrive.
He said: “Many business owners in Nigeria are committed to serving Nigerians with the best quality of services, but they are struggling to do that because of the tough operating environment, particularly insecurity and a high cost of doing business.
“We just had a tour of La-Jen spring water production plant, and we were highly impressed. The setup looks simple, but it is clear that a lot of money, professionalism, and care went into putting this together. You can see the commitment to hygiene and safety, which makes this water very much safe for human consumption.
“The challenges facing manufacturers are enormous, especially with erratic power supply. As we were going through the facility, the electricity went off. This is a business that solar power can’t sustain because the machines consume a lot of power. We need a reliable power supply. Also, if there was an enabling economic environment, perhaps we could even produce these machines locally.”
Leave a comment