Private Sector Seeks Policy Coherence, Affordable Finance

The Organised Private Sector of Nigeria (OPSN) has called for urgent policy coherence, affordable financing and regulation to safeguard businesses and reposition the economy for sustainable growth.

Chairman of OPSN, Jani Ibrahim, made the call at the OPSN Strategy Meeting.

He stressed that Nigeria’s private sector remains the country’s most reliable engine for growth, employment, innovation, and resilience.

He noted that small and medium-sized enterprises (SMEs) account for over 90 per cent of businesses and more than 80 per cent of employment, while the private sector contributes well over half of the national GDP.

OPSN president lamented that businesses are grappling with rising input costs, exchange rate volatility, energy constraints, logistics inefficiencies, and shrinking consumer purchasing power, warning that these pressures threaten production, payroll decisions, and national competitiveness.

He urged the government to treat private sector survival and growth as a national priority, adding that cumbersome business registration processes, high cost of finance, and regulatory overlaps continue to undermine enterprise development.

Ibrahim further advocated reforms to ease business entry and formalisation, calling for faster turnaround times at the Corporate Affairs Commission (CAC) and more affordable intellectual property protection.

He decried domestic credit to the private sector remaining below 15 per cent of GDP, far below that of peer economies, and described high lending rates as inimical to long-term investment.

According to him, the proposed OPSN Bank, designed to provide single-digit interest financing, could unlock manufacturing capacity, deepen value chains, and stimulate job creation.

He also criticised regulatory excesses, including overlapping inspections and duplicative compliance demands, which he said escalate operating costs, particularly for manufacturers and SMEs.

On climate policy, Ibrahim urged a realistic and context-sensitive green transition, noting that ESG compliance and carbon market readiness require capacity building, access to green finance, and policy clarity to prevent Nigerian businesses from being edged out of global value chains.

He added that revitalising export infrastructure, especially Export Trade Houses, remains critical to boosting non-oil exports and foreign exchange earnings.

The national president of the Nigeria Association of Small and Medium Enterprises (NASME), Dr Abdulrashid Yerima, said the ongoing tax reform would significantly reduce the burden of multiple taxation, arbitrary levies, and excessive import duties that have historically constrained small businesses.

Yerima explained that for years, NASME members have endured overlapping taxes imposed by different tiers of government, alongside unauthorised collections by non-state actors, which have eroded profitability and discouraged expansion.

He expressed optimism that the reform would deliver a clearer, fairer, and more predictable tax framework, enabling MSMEs to reinvest, scale operations, create jobs, and drive inclusive economic growth.

President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye expressed strong support for the tax reform, describing it as timely and essential to easing the burden on manufacturers and stimulating economic recovery.

He stressed the need for continuous engagement and collaboration with relevant agencies to prevent abuse by illegal tax collectors and ensure strict enforcement of approved tax provisions.

According to him, only a transparent, predictable, and uniformly applied tax regime can restore business confidence, attract investment, and reposition Nigeria’s manufacturing sector for sustained growth.