Inflation, Taxes, Interest Rates Threaten Business Survival – ICSAN

Rising inflation, high interest rates, increased tax obligations and regulatory pressures are threatening the survival of businesses in Nigeria, the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) has warned.

The institute said the difficult operating environment was making it harder for companies to remain profitable while meeting regulatory, compliance and corporate governance requirements.

Speaking with newsmen in Lagos, ICSAN Vice President, Mr Francis Olawale, who represented the institute’s President, Mrs Uto Ukpanah, said businesses were under pressure from rising operating costs, expensive borrowing, taxation and expanding regulatory obligations.

Olawale said the economic difficulties should not be used as justification for weakening corporate governance and ethical standards.

“Businesses can pursue profitability while remaining compliant with regulations and adhering to ethical standards. You can run by the rules and still pursue your profits,” he said.

He said companies needed to manage rising costs and regulatory obligations without exposing themselves to compliance failures, reputational damage and other business risks.

According to him, the survival of businesses was important to the wider economy because companies contribute to employment, investment, government revenue and household income.

Similarly, he stressed that governance professionals had become increasingly important as businesses contend with regulatory, taxation, risk management and accountability challenges.

He further noted that their responsibilities now extended to areas such as regulatory compliance, risk management, board evaluation and corporate accountability.

The Institute’s VP said businesses needed to understand their obligations under the ongoing tax reforms while distinguishing legitimate tax planning from tax evasion.

“The issue is not about avoiding taxes. It is about understanding the tax obligations of businesses and developing legitimate strategies that support sustainability,” he said.

He, however, added that the 60th anniversary discourse centres on examining the relationship between tax reforms, corporate transparency, governance and business sustainability, particularly as companies adjust to changing economic and regulatory conditions.