Nigerian Business Environment Becoming More Hostile - Tella | Independent Newspaper Nigeria

Source: Independent Newspapers Nigeria

LAGOS - The Nigerian business environment is becoming more hostile and certain as the years go by. Policy somersaults and reversals have been the order of the day. And inadequate supply of electricity has worsened the situation, leading businesses and others to generate power on their own.

However, Temidayo Tella, the founder and chief executive officer of Tella Resources, a Lagos-based business development company, identified some of the challenges that are stopping businesses and entrepreneurs from attaining their full potential.

He said that the economic environment in the country is full of uncertain policies around costs, especially with the dollar to naira behaviour. He stated that the foreign exchange regime is negatively affecting businesses in the country.

He identified the high cost of materials as a challenge, leading to inflation and high cost of running businesses.

He argued that the high cost of fuel for powering generators, high cost of transportation and rent and high cost of raw materials are challenges to entrepreneurs and business people.

Tella observed that power/electricity costs lead many businesses to shut down.

Lack of confidence in the government - according to him, the political environment is such that people are losing confidence in the government to be able to give dividends of democracy. With rising costs of everything, it is making people sit on the edge and wonder if ease would come at all.

He added that as a business man, one gets weary of investing due to lack of confidence and trust in the government policies.

The Founder and Chief Executive Officer of Tella Resources Insecurity stated that kidnapping and violence have not reduced, "In fact they have turned up a new high volume, any environment that is not safe would not get invested in; such an economy would experience capital flight and other negative issues. No business man wants to put in money where he is scared of his life."