Multiple taxation, loan struggles crippling MSMEs – Entrepreneur

An entrepreneur and the CEO of Deemakay World, Ms. Adedamola Makanjuola, has lamented that the difficulty in accessing loans from financial institutions—due to insufficient collateral, poor credit history, and high interest rates—has continued to push Micro, Small, and Medium Enterprises (MSMEs) in Nigeria to the brink.

She said erratic power supply, an inconsistent regulatory framework, and multiple, unharmonized taxes, including levies imposed by different levels of government, also pose serious challenges to their expansion and day-to-day operations.

Makanjuola spoke on Monday during a press conference heralding the 2025 Deemakay Business Exhibition, to be held at the MKO Sports Arena in Abeokuta on the 6th–7th of December, 2025.

Makanjuola stressed the need for the state government to embark on a series of measures, interventions, and support initiatives to encourage and sustain economic growth and development.

She argued that a concentrated effort to identify and safeguard MSMEs is essential for sustainability and economic advancement, adding that the sector is too large and significant to be disregarded.

While admitting that many entrepreneurs lack essential business management skills—such as financial record-keeping, strategic planning, and quality control—Makanjuola noted that the absence of technical support makes it difficult for them to adopt modern tools and digital platforms necessary for increased productivity and competitiveness.

She said, “MSMEs have limited access to finance; this is one of the most pressing challenges. We struggle to secure loans from financial institutions due to a lack of collateral and limited credit history. When loans are available, the interest rates are often prohibitively high, restricting expansion and day-to-day operations.

“Regulatory burden and multiple taxation are other challenges we face as MSMEs. We navigate a complex and often inconsistent regulatory framework, which consumes valuable time and resources.

“Multiple, unharmonized taxes and levies imposed by different levels of government add to the cost of doing business and can be a major cause of business failure.

“Also, unreliable power supply, poor transport systems, and a lack of other basic amenities significantly increase operational costs, as businesses are forced to provide these utilities themselves (e.g., generators for electricity).”

She argued that despite the state of the nation’s economy, Ogun State has what it takes to develop an efficient small-scale enterprise ecosystem, urging the government to help create a more effective informal sector where vendors in the state can thrive.

Our correspondent reports that this year’s Season 7 exhibition will have the Commissioner for Women Affairs and Social Development, Adijat Adeleye, as its guest speaker with over 100 vendors expected to exhibit at the event.

“Deemakay Business Exhibition, the biggest business exhibition in Ogun state was conceived out of the curiosity to bring value to MSMEs, vendors in Ogun state as well as build small scale enterprises in order to compete favourably with their counterparts in Lagos, Abuja and across Nigeria.

“As players in the informal sector, we believe the informal sector is essential for economic growth. It is a key provider of jobs and income in emerging economies. But instability in market prices, poor economic policies had a significant impact on low income earners,” the Convener said.

Nigerians can now invest ₦2.5 million on premium domains and profit about ₦17-₦25 million. All earnings paid in US Dollars. Rather than wonder, click here to find out how it works.

Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.