The President of the Abuja Chamber of Commerce and Industry, Chief Emeka Obegolu (SAN), has raised serious concern over Nigeria’s tough business environment, warning that the country’s economy is contracting as more businesses continue to shut down. He said the increasing rate of job losses and declining economic activities across different sectors shows that urgent action is needed to stabilise the economy and support private enterprises.
Obegolu spoke at the 2025 Media Parley on National Security, Ranching Reforms and Satellite Monitoring for an Improved Business Environment, where business leaders, policymakers, and security stakeholders discussed the impact of insecurity, policy gaps, and economic reforms on Nigeria’s business climate.
In his address, the ACCI president disclosed that the chamber receives employment applications almost every day, even though it is not a recruitment agency. According to him, this trend reflects the growing number of unemployed Nigerians and the pressure on businesses that are either downsizing or closing completely.
“Businesses are closing down. Even as a chamber of commerce, we receive applications for employment on a daily basis. What it shows us is that the economy is contracting,” Obegolu said.
He explained that many companies are struggling to survive due to a mix of rising production costs, weak infrastructure, insecurity, and inconsistent policy implementation. These challenges, he said, have reduced investor confidence and made it difficult for businesses to plan for the long term.
While commending the Minister of the Federal Capital Territory, Nyesom Wike, for ongoing efforts to develop the industrial park in Abuja, Obegolu noted that the core base of commerce and industry in the capital remains largely neglected. He stressed that the problem facing the industrial park is not insecurity but the absence of basic infrastructure and facilities required for businesses to operate efficiently.
“If you go to the industrial park, the FCT minister is doing wonderfully well, but the core base of commerce and industry is neglected. There is no facility in the industrial park. That is not insecurity. There is so much we can do as a government to improve the lot of businesses in this country,” he said.
Obegolu also spoke on the impact of insecurity, especially issues linked to open grazing and farmer-herder conflicts, on businesses and economic activities. He called on the government to show strong political will by adopting proven ranching models from other countries instead of trying to design new systems from scratch. According to him, insecurity and weak policy execution have played a major role in business closures and rising unemployment across the country.
He warned that the current situation is not sustainable and could lead to deeper economic and social problems if left unaddressed. He stressed that businesses should be seen as partners in national development and not just as sources of revenue.
“Government must begin to understand that businesses are partners in development. This tax law speaks to it clearly that we are your partners, but a partner must play a role to support it. I don’t have the figures that we are losing, but I know there is an enormous loss, and it is not sustainable. If we continue like this, at some point, something must give,” Obegolu warned.
On tax reforms, the ACCI president said financial illiteracy remains a major challenge within the business community. He explained that this is why the chamber has continued to organise tax awareness and education programmes for its members. According to him, while opinions differ on the new tax law, many businesses agree that it has helped to address the long-standing problem of multiple taxation.
He noted that the benefits of the tax reforms are clearer to businesses that understand how the system works. However, he warned that business owners who do not fully understand their tax obligations may unknowingly violate the law due to its technical nature.
“Tax does not impose financial difficulty; it eliminates multiple taxation. But if you don’t have a tax consultant, you may easily commit an offence without knowing,” he said.
Describing tax revenue as the “next oil” in the face of declining petroleum income, Obegolu said the government effectively owns about 30 per cent of every business through taxation. He explained that this reality makes it necessary for businesses, through chambers of commerce and other platforms, to demand accountability from the government on how tax revenues are used.
“If the government takes 30 per cent of your profit, that means they own 30 per cent of every business in Nigeria. Whether you list the government as your shareholder or not, the government is the 30 per cent shareholder in every business. So businesses must also ask what the government is doing with the tax money,” he said.
Obegolu also expressed concern over the rising cost of production, noting that there are no clear signs of immediate stabilisation. He said the ACCI is working with multinational, multilateral, and national financial institutions to support its members, including facilitating access to funding through agencies such as the Bank of Industry.
However, he pointed out that many business owners fail to prepare proper and bankable feasibility studies, which often leads to rejected loan applications. He advised entrepreneurs to work with sector-specific consultants and take full advantage of the support services offered by the chamber.
The ACCI president further cautioned against the politicisation of financial support programmes, calling for transparency and stronger public-sector backing for private businesses. He urged the government to be open about consultancy projects, particularly in the tax sector, which he described as the heartbeat of the Nigerian economy.
Obegolu raised concerns about unclear terms and conditions in some engagements, warning that they could pose risks to data security and national interest. He called on the government to clearly explain such agreements and how Nigeria’s financial data and security will be protected.
