Is Nigeria's government stifling small businesses?

In a recent development, bulldozers owned by the Lagos State government flattened a block of shops in Ikoyi, Lagos, last Thursday due to the building owner's failure to obtain the necessary development permits. This action is part of a broader campaign to demolish illegal structures across the state, leading to significant losses for the businesses operating in these buildings. The small business owners affected by these demolitions are now speaking out against the government, accusing them of stifling the growth of enterprises in an already challenging economic environment. One of the business owners impacted by this move is Ada Osakwe, the Founder and CEO of Nuli Foods. In an exclusive interview with CNBC Africa, Osakwe shared her perspective on the situation. She expressed disappointment that thriving legal businesses, which contribute to the economy through job creation and tax payments, are bearing the brunt of these demolitions. Osakwe emphasized the need for affected businesses to regroup and focus on the way forward, ensuring that other small enterprises do not face similar challenges. The Lagos State government defended its actions, stating that they had served statutory notices to the building owners before the demolitions took place. However, Osakwe highlighted the lack of empathy and sensitivity shown towards the businesses that only had a brief period to vacate the premises. She called for a more considerate approach from the authorities, suggesting that a 24-hour notice period could have allowed businesses to rectify any potential issues. Despite the setbacks faced by small businesses in Lagos, Osakwe remains optimistic about the entrepreneurial environment in the state. She underscored the importance of resilience and perseverance in overcoming obstacles, vowing to continue raising awareness about the challenges of operating businesses in Nigeria. The incident in Ikoyi serves as a stark reminder of the delicate balance between regulatory enforcement and supporting the growth of small enterprises in emerging markets. Moving forward, the government and business community must engage in constructive dialogue to address issues of compliance effectively while fostering a conducive environment for entrepreneurship to thrive.