Ogun MSMEs Decry Crippling Taxation & Loan Struggles, Business Failure Rises

Micro, Small, and Medium Enterprises (MSMEs) in Ogun State are facing severe operational challenges, primarily citing crippling multiple taxation and immense difficulty in accessing affordable loans as factors pushing their businesses to the brink of collapse.

Dependable NG reports that these worries were expressed by vendors during a press conference held on Monday, heralding the 2025 Deemakay Business Exhibition.

The MSME operators lamented the immense struggle to secure financing from financial institutions due to several bottlenecks, including insufficient collateral, poor credit history, and prohibitively high interest rates. They added that erratic power supply, inconsistency in the regulatory framework, and multiple, unharmonized taxes and levies imposed by different levels of government further hinder their expansion and daily operations.

Speaking at the conference, Adedamola Makanjuola, the CEO of Deemakay world, strongly urged the state government to implement a series of measures, interventions, and support programs crucial for encouraging sustained economic growth and development within the state.

Makanjuola argued that a concentrated effort to identify and safeguard small businesses is essential for long-term sustainability and economic growth, emphasizing that the MSME sector is too large and significant to be disregarded.

Detailing the issues, she stated: “MSMEs have limited access to finance; this is one of the most pressing challenges. We struggle to secure loans from financial institutions due to a lack of collateral and limited credit history. When loans are available, the interest rates are often prohibitively high, restricting expansion and day-to-day operations.”

She also highlighted the regulatory burden: “Multiple, unharmonized taxes and levies imposed by different levels of government add to the cost of doing business and can be a major cause of business failure.”

Makanjuola also acknowledged internal shortcomings, admitting that many entrepreneurs lack essential business management skills, such as financial record-keeping, strategic planning, and quality control. She noted that a lack of technical support makes it difficult for them to adopt modern tools and digital platforms necessary for increased productivity and competitiveness.

She passionately argued that despite the current economic state of the nation, Ogun State possesses the capacity to foster an efficient small-scale enterprise environment, urging the government to help create an efficient informal sector where vendors can thrive.

The report concluded by noting that the year’s Season 7 exhibition is scheduled to feature the Commissioner for Women Affairs and Social Development, Adijat Adeleye, as its guest speaker.