Nigerian Business Owners Voice Opposition to FRCN's N50,000 Director Levy
Entrepreneurs across Nigeria are expressing strong discontent over a recent directive from the Financial Reporting Council of Nigeria (FRCN), which requires each company director to pay N50,000 for filing financial returns. This move has sparked widespread criticism, with business owners labeling it as an unfair and harsh imposition on already struggling small and medium enterprises (SMEs).
Growing Frustration Over Excessive Taxation
Bosun Solarin, a business owner, highlighted the severe challenges facing SMEs, noting that the electricity situation has deteriorated significantly since the start of the year, coupled with unbearable diesel costs. "I have not really produced anything this year because the cost of production is high, while purchasing power is very low," Solarin lamented. She accused government agencies of devising new ways to increase taxes, effectively forcing businesses to shut down.
Solarin also pointed to last year's mandate from the Standard Organisation of Nigeria (SON), which required sales outlets to reject products without SON numbers, even if certified by the National Agency for Food and Drug Administration Control (NAFDAC). "SON certification costs over N300,000 and is only valid for a year, further extorting manufacturers and MSMEs," she explained, emphasizing the redundancy and financial strain of overlapping regulations.
Regulatory Hurdles and Financial Strain
Expanding on her grievances, Solarin detailed her struggles with NAFDAC, despite advocacy efforts from business organizations. "I have not been able to register my product for two years now, even after spending close to two million naira," she said. Her experience includes paying N700,000 for registration, over N200,000 for analysis, and repeated payments due to expired inspections, leaving her with idle machines and millions in loans. "I cannot sell anything at home or abroad because I do not have a NAFDAC number. The system is frustrating businesses," she concluded.
Widespread Criticism from Entrepreneurs
Another entrepreneur, Sulaimon Babatunde, echoed these concerns, stating that businesses are being overtaxed with little to show in return. He criticized agencies for becoming rent-seeking entities rather than supporting business growth. "There are too many levies, taxes, and fees being demanded from us, and we get nothing in return," Babatunde remarked. He described the new FRCN levy as unfair and unnecessary, especially for businesses struggling to stay afloat.
The collective outcry underscores a broader issue of regulatory burdens and excessive taxation in Nigeria, with entrepreneurs calling for more supportive policies to foster economic resilience and growth.
