Entrepreneurs have raised concerns over the Financial Reporting Council of Nigeria’s (FRC) directive, mandating each director, three in all, to pay N50,000 to file companies’ financial returns.

Describing the move as unfair and harsh, a business owner, Bosun Solarin, lamented that small and medium entrepreneurs (SMEs) are over-taxed.

“Since the start of this year, the electricity situation has gone from bad to worse and the cost of diesel is unbearable. Now, we are being hit with this. I have not really produced anything this year because the cost of production is high, while purchasing power is very low.

“Despite all these problems, the government and its agencies are simply looking for new, creative ways to increase taxes and force us out of business.”

Solarin lamented that just last year, the Standard Organisation of Nigeria (SON) mandated all sales outlets to reject products that do not have SON numbers, even if they have been certified by the National Agency for Food and Drug Administration Control (NAFDAC).

“Sadly, there is little difference between what NAFDAC does and what they are doing. The system allows this to further extort manufacturers and MSMEs. SON certification costs over N300, 000 to get and it is only valid for a year.”

Also calling out NAFDAC, she regretted that despite advocacy from business organisations, the regulatory body has continued to frustrate business owners in the country.

“Most MSMEs are struggling. In my own case, I have not been able to register my product for two years now, even after spending close to two million naira to get registered. Mind you, I have not been able to sell anything because I am not yet registered, yet I am being squeezed.

“I registered my product with N700,000. Before you can file, you have to do an analysis that costs over N200,000. It took them over a year for them to come and inspect my factory, and by then, they said the initial payment had expired and I had to pay again.

“I was shocked at the audacity after being told they would not inspect if I did not pay for another analysis. I have paid for three analyses now with nothing to show for it. I have machines lying idle, and I took loans running into millions of naira. Sadly, I cannot sell anything at home or abroad because I do not have a NAFDAC number. I am at a loss; the system is frustrating businesses,” she lamented.

Another entrepreneur, Sulaimon Babatunde, also decried the situation, saying businesses are being overtaxed. Regretting that most agencies have simply become rent-seeking rather than promoting the growth and survival of businesses, he said, businesses are failing at an alarming rate.

“There are too many levies, taxes and fees that are being demanded from us and we get nothing in return. Everyone wants to tax us, all the levels of government and their agencies, but nobody wants to help us. Now we are being asked to cough out N50, 000 per director for businesses that many people are struggling to stay afloat, it is unfair and unnecessary,” he said.