The economic discussion at the Briefing Room Town Hall also spotlighted the growing challenges facing Nigerian businesses, with entrepreneurs saying soaring inflation, unstable prices and rising operating costs have forced many companies to abandon expansion plans in favour of simply staying afloat.
One business owner in the construction sector explained that inflation has made project execution increasingly difficult, particularly because prices of building materials often change after contracts have already been awarded.
According to the entrepreneur, contractors frequently submit bids based on prevailing market prices, only for the cost of materials to rise significantly before work begins.
"Most businesses are no longer talking about growth. We're simply trying to keep our businesses alive," the entrepreneur said.
The speaker noted that while clients expect projects to be completed at agreed prices, contractors are often forced to absorb the additional costs resulting from inflation, leaving their profit margins severely reduced.
The entrepreneur cited cement prices as an example of the volatility facing businesses.
According to the account, a contractor may prepare a quotation when cement sells for around ₦10,000 per bag, only to discover that by the time construction begins, the price has risen to about ₦12,500 or more.
Because many contracts are fixed-price agreements, businesses are left to shoulder the difference.
The participant said workers and clients often do not appreciate the financial pressure placed on contractors during project execution.
"The customer wants the job delivered at the original price, but the cost of transportation, labour and materials has already increased," the entrepreneur explained.
Beyond construction materials, the speaker identified transportation, accommodation, logistics, administrative expenses and taxation as additional burdens confronting business owners.
Projects outside Lagos, the entrepreneur said, require employers to cover accommodation, feeding and transport for workers, while businesses operating within the state also face escalating logistics expenses.
The entrepreneur further argued that the implementation of withholding tax and other regulatory costs has added to the financial pressure, with some business agents allegedly attempting to shift tax obligations onto contractors.
The business owner also lamented delayed payments from clients, saying many companies now rely on bank loans with high interest rates to finance projects.
However, when clients fail to pay on schedule, businesses are left servicing expensive loans without corresponding cash flow.
"You borrow money to execute a project, but when the client delays payment, you're still expected to repay the bank with interest. The financial burden keeps increasing," the participant said.
When asked whether doing business in Nigeria today is more difficult than it was three or four years ago, the entrepreneur responded in the affirmative.
"Yes, very much. It is much harder to do business in Nigeria today," the speaker stated.
Responding to the testimonies, one of the panelists argued that many of Nigeria's current economic challenges stem from policy implementation that lacked adequate preparation and supporting structures.
The analyst pointed to the removal of fuel subsidy and reforms in the foreign exchange market, saying that while such policies may have been economically necessary, they were introduced without sufficient safeguards to cushion their immediate impact on businesses and households.
According to the panelist, the rapid increase in fuel prices triggered higher transportation costs, production expenses and inflation across multiple sectors of the economy.
The expert also highlighted the rising cost of rent and business overheads, noting that many entrepreneurs have experienced sharp increases in office and commercial property rents while attempting to maintain operations.
Citing poverty statistics, the analyst observed that a significant proportion of Nigerians now face multidimensional poverty, making it increasingly difficult for both households and businesses to cope with the country's economic realities.
The panel concluded that without policies that stabilize inflation, improve access to affordable financing and reduce the cost of doing business, many small and medium-sized enterprises may continue to struggle for survival rather than growth.
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