The President of the Abuja Chamber of Commerce and Industry, Chief Emeka Obegolu (SAN), has raised concern over the tough business climate in Nigeria, warning that the economy is contracting as businesses continue to shut down across the country.

Speaking at the 2025 Media Parley on National Security, Ranching Reforms and Satellite Monitoring for an Improved Business Environment, Obegolu disclosed that the chamber receives employment applications daily, a development he said reflects rising job losses and declining economic activities.

In his address at the parley, he said, “Businesses are closing down. Even as a chamber of commerce, we receive applications for employment on a daily basis. What it shows us is that the economy is contracting.”

While commending the Federal Capital Territory Minister for efforts at the industrial park, the ACCI president noted that the core base of commerce and industry remains largely neglected, adding that the absence of basic facilities in the industrial park is a major setback and not a consequence of insecurity.

“If you go to the industrial park, the FCT minister is doing wonderfully well, but the core base of commerce and industry is neglected. There is no facility in the industrial park. That is not insecurity. There is so much we can do as a government to improve the lot of businesses in this country,” he added.

Meanwhile, Obegolu emphasised the need for political will, clear policies and stakeholder engagement to end open grazing, urging the government to adopt proven ranching models from other countries rather than reinventing the wheel.

He noted that insecurity and poor policy implementation have contributed significantly to business closures and unemployment, warning that the current situation is unsustainable.

“Government must begin to understand that businesses are partners in development. This tax law speaks to it clearly that we are your partners, but a partner must play a role to support it. So, I don’t have the figures that we are losing, but I know there is an enormous loss, and it is not sustainable. If we continue like this, at some point, something must give,” Obegolu warned.

On tax reforms, Obegolu said financial illiteracy remains widespread within the business ecosystem, prompting the chamber to organise tax awareness programmes for its members. He noted that although opinions are divided on the new tax law, the prevailing view is that it has helped to eliminate multiple taxation and offers benefits to tax-literate businesses.

He urged business owners to fully understand their obligations under the law, warning that ignorance could lead to unintentional offences due to the technical nature of taxation. “Tax does not impose financial difficulty; it eliminates multiple taxation. But if you don’t have a tax consultant, you may easily commit an offence without knowing,” he said.

Describing tax as the “next oil” in the face of dwindling petroleum revenues, Obegolu explained that the government effectively owns 30 per cent of every business through taxation. He added that this makes it imperative for businesses, through chambers of commerce, to hold the government accountable for the use of tax revenues.

“If the government takes 30 per cent of your profit, that means they own 30 per cent of every business in Nigeria. So we need to understand that in every business you work in, whether you list the government as your shareholder or not, the government is the 30 per cent shareholder in every business.

“So if you understand that, you now know that it is incumbent upon you to also ask what the government is doing with the tax money, and that is where businesses must hold the government accountable,” he stated.

Obegolu also expressed concern over the rising cost of production, noting that there are no immediate signs of stabilisation, but stated that the chamber is partnering with multinational, multilateral, and national finance agencies to support members, including access to funds through institutions such as the Bank of Industry.

However, he noted that many business owners fail to adequately prepare bankable feasibility studies, leading to declined applications. He advised businesses to engage sector-specific consultants and take advantage of ACCI’s support services.

He also cautioned against the politicisation of financial support programmes, calling for greater transparency and improved public-sector support for private enterprises. Obegolu called on the government to be transparent about consultancy projects, especially in the tax sector, which he described as the heartbeat of the nation.

He expressed concern that the terms and conditions of certain engagements remain unknown, raising questions about data security and national interest. “If we take a chunk of our national income and hand it over to a foreign government, it has a bearing on our security. What it means is that they can seize our money, but we need to know in detail what the terms are.

“We are calling on the government to be more transparent with these issues. Let us know the terms they have agreed on and how they intend to secure our data and Nigeria’s national security,” he added.