Entrepreneurship is often portrayed as a journey of innovation, financial independence, and self-actualisation. But in Nigeria, it is more of a battle — a relentless struggle against an unforgiving system. From unreliable infrastructure to suffocating bureaucracy, Nigerian entrepreneurs are forced to navigate a harsh environment where survival often depends not just on skill or business acumen, but on sheer resilience and mental strength.
Among the many challenges, one of the most frustrating is the unexplainable delays in obtaining regulatory approvals, especially from the National Agency for Food and Drug Administration and Control (NAFDAC). For entrepreneurs in the food, beverage, pharmaceutical, and cosmetics industries, securing NAFDAC registration is a crucial requirement.
Business owners and Micro, Small and Medium Scale (MSMEs) groups have had cause to call out NAFDAC over delays in product registration, accusing the agency of stifling business start-ups through bureaucratic bottlenecks. NAFDAC has a policy that the registration process for food products should take not more than 90 days from the acceptance of an application, while drug product registrations should take no longer than 120 days from acceptance. However, business owners contend that they often wait nearly a year to receive their registration numbers and launch their products.
The alleged opaque processes of the agency are worrisome, as some applicants are left in the dark, unable to get status updates or clear reasons for the delay. There are also alleged cases of high costs and extortion. Although the official registration fees are high, what is worse is the alleged under-the-table payments some applicants feel pressured to make just to fast-track their applications.
The result is that many small businesses, unable to afford the long wait, either shut down or operate illegally, exposing themselves to crackdowns and heavy penalties. For an economy that encourages local production, such delays stifle innovation, discourage investors, and force many businesses to import already approved foreign alternatives — defeating the purpose of growing local industries.
The power supply nightmare is also a torn in the flesh of entrepreneurs in Nigeria. No Nigerian entrepreneur is a stranger to the phrase “no light.” The country’s epileptic power supply is one of the biggest hurdles businesses face. Whether you’re running a manufacturing plant, a tech start-up, or a simple barbershop, the reality is the same: Generators become an essential business cost, with diesel and petrol consuming profits; solar and inverter systems are expensive and out of reach for many start-ups; frequent power surges damage equipment, leading to costly repairs and replacements. For many entrepreneurs, the cost of alternative power alone can determine whether their businesses survive or shut down.
Added to these are the challenges of bureaucracy and multiple taxation. Starting and running a business in Nigeria feels like a never-ending paperwork battle. Business registration with the Corporate Affairs Commission (CAC) can be delayed for weeks or months. Licences and permits from multiple government agencies come with excessive costs and slow approvals. Entrepreneurs face multiple taxation, often paying levies at federal, state, and local council levels — sometimes for the same thing. Instead of supporting businesses, the system feels designed to drain them before they even stand a chance. This forces some businesses to operate informally to evade excessive levies.
Access to finance is the lifeblood of business, but in Nigeria it’s almost impossible for start-ups and small businesses, hence one of the biggest challenges Nigerian entrepreneurs face. Banks demand outrageous collateral, locking out most entrepreneurs. Government loans are often riddled with bureaucracy and favouritism — real businesses struggle while politically connected individuals get access. Angel investors and venture capital firms are scarce, leaving entrepreneurs to bootstrap, borrow from family and friends or take high-interest loans from loan sharks. Without access to capital, many businesses remain small, stagnant, or collapse under financial strain.
With the spate of insecurity in the country, moving goods across states has become dangerous due to banditry, kidnapping, bad roads, and corrupt officials extorting bribes. Cybercrime is also on the rise, affecting e-commerce and digital businesses as well as eroding trust in online transactions. So, entrepreneurs are not just fighting for survival in the market; they are also fighting for their safety and that of their businesses.
Above all is the issue of policy instability. Government policies in Nigeria can change overnight, often without warning or consultation; such that a business model that thrives today could be rendered obsolete overnight by a sudden policy change. Forex restrictions affect businesses that rely on imports; sudden bans on certain products or materials cripple industries while tax hikes or new levies emerge without consideration for small businesses. With such unpredictability, long-term business planning becomes almost impossible.
These challenges take both mental and emotional toll on entrepreneurs in the country. They burnout from long hours and constant setbacks; experience anxiety over financial instability and survival and lack social and mental health support. The burden of managing employees, handling legal issues, and staying afloat in an unpredictable economy can be crushing. With no safety net or structured support system, many entrepreneurs operate on the edge of exhaustion and despair.
Despite these challenges, Nigerian entrepreneurs remain some of the most resilient and innovative in the world. Many have built thriving businesses against all odds, proving that success is possible even in the harshest conditions. However, success should not be based on surviving a broken system — it should be about thriving in a supportive one.
The government and private sector must take deliberate steps to ease the agony of entrepreneurship and for business in general to flourish by ensuring stable power supply to reduce operational costs; streamlining NAFDAC regulatory processes to prevent unnecessary delays; simplifying taxation and reducing bureaucratic hurdles to encourage business growth; ensuring accessible funding through fair and transparent loan and grant systems; improving security and infrastructure to create a safer and more efficient business environment and being consistent in policy making to allow businesses to plan long-term.
Until these structural issues are addressed, entrepreneurs in Nigeria will continue to fight an uphill battle —one that, for many, ends in frustration and financial loss. For now, the agony continues.
Okoroafor wrote from the UK.
