Entrepreneurs here don’t just contend with the market; they contend with the state itself. Sudden tax reforms, unpredictable import bans and contradictory regulations hit them; the environment is usually more like a minefield than a marketplace. 

The question is no longer whether you can compete with other businesses, but if you can survive policy shocks long enough to compete at all.

The Context & Stakes

The country’s business environment is high-potential but high-risk. Reforms are truly designed to improve revenue, regulate emerging industries, and boost infrastructure. But in practice, the unpredictability of these changes usually destabilises businesses before they can adapt.

With a tax-to-GDP ratio of just 9%, one of the lowest in Africa, the government is having challenges in widening the tax net. The Nigeria Tax Act 2025 introduced a 4% Development Levy on assessable profits, consolidating several existing levies. While aimed at simplifying compliance, such measures often arrive with little transition time, leaving businesses struggling to rework budgets overnight.

This is not a problem unique to big corporations, as small businesses, which form the backbone of Nigeria’s economy, face their own version of this challenge. Those with turnover under ₦100 million are exempt from Companies Income Tax, but exemptions exclude professional service firms, creating uneven relief and distorting competition.

When the rules change faster than you can adapt, even the most promising venture can collapse.

The Four Big Obstacles

a) Ever-Changing Tax Regimes

Tax changes here are not occasional; they’re constant. Beyond the new Development Levy, digital asset taxation is now law. Profits from crypto and virtual assets are taxable under the new framework, but enforcement is still tricky due to valuation gaps and anonymity challenges. 

The speed and frequency of such reforms mean businesses are perpetually in a state of adjustment, burning resources on compliance rather than growth.

b) Lack of Infrastructure

Nigeria’s infrastructure stock stands at just 30% of GDP, far below the World Bank’s benchmark of 70%. This gap, projected to reach $878 billion over the next 26 years, is the reason SMEs spend twice as much producing goods as their peers in better-served economies. 

Unreliable power forces reliance on generators. Overstretched ports and congested roads delay shipments. Even with 35 governors planning to spend ₦17.51 trillion on infrastructure this year (a 54% increase from 2024), execution is still not certain.

c) Regulatory Whiplash

Few sectors illustrate this better than crypto and fintech. In 2021, the CBN banned crypto transactions, but by 2023, the ban was reversed. Now, under the Investments and Securities Act 2025, crypto is recognised as a regulated digital asset under SEC jurisdiction. 

Fintech companies are caught between overlapping oversight from the CBN and SEC, creating compliance confusion that slows innovation and drives some startups underground.

d) Corruption & Rent-Seeking

The UNODC’s 2024 Nigeria Corruption Survey shows over 70% of Nigerians refused to pay a bribe at least once, a sign of commendable resistance. But corruption still ranks among the country’s top three challenges. 

From procurement to licensing, rent-seeking behaviour inflates costs and wastes time. Many entrepreneurs silently admit that bribes remain “the price of getting things done,” even when they affect trust in institutions.

Survival & Growth Strategies

• Diversify Revenue Streams: Relying on a single source of income is dangerous when a policy change can erase it overnight.
• Stay Policy-Aware: Join trade associations, attend policy briefings, and actively monitor regulatory developments. Being caught off-guard is expensive.
• Build Flexible Models: Design operations that can shift quickly, for example, businesses that can toggle between import and local sourcing depending on customs rules.
• Invest in Digital Agility: E-commerce, remote service delivery, and cloud-based operations can help bypass some infrastructure constraints.
• Collaborate for Scale: Partnerships reduce exposure. Shared logistics, pooled procurement, or joint advocacy can soften the blow of policy changes.

An SME owner in Lagos recently told me:

“Every time I hear ‘new policy,’ I don’t think about how it will help. I think about how much it will cost me this time.”

Another, a fintech founder, described the constant pivoting as “building on shifting sand.” The frustration is the unpredictability, not limited to the cost.

Macro Takeaway

In Nigeria, policy is a central player, not just the background noise of business. And for many, it feels less like a referee and more like a competitor.

Scaling through goes beyond market fit; it includes policy resilience. Entrepreneurs need to be as skilled at reading government gazettes as they are at reading balance sheets. The prize for those who adapt is a market with huge potential, and the cost for those who can’t is early extinction.

So, I leave you with this:
If you could design one policy to protect Nigerian entrepreneurs from sudden shocks, what would it be?

Corruption, embezzlement, money laundering, and fraudulent practices have marred the integrity of the banking system, leading to economic instability and undermining public trust.

The consequences of such illicit behaviour extend beyond the individual institutions, affecting the entire economy.

This article aims to examine the challenges posed by bank executives’ criminal activities in Nigeria, explore their impact on the economy, and propose potential solutions to mitigate these issues.

Addressing issues related to bank executives’ criminality and their impact on the economy often requires a multifaceted approach. Legislative and regulatory reforms, in combination with law enforcement efforts, are typically crucial in mitigating these challenges.

Furthermore, technology can play a significant role in improving transparency and oversight. For instance, utilizing digital audit trails, blockchain technology for secure transactions, and data analytics for identifying irregular patterns can help in monitoring and detecting possible misconduct.

However, addressing these issues also requires systemic reforms, effective enforcement mechanisms, and collaboration among government agencies, financial institutions, and relevant stakeholders.

Additionally, promoting a culture of corporate governance, ethics, and accountability is essential in fostering a more transparent and responsible financial sector.

By integrating these strategies, Nigeria can work towards combating bank executives’ criminality and fostering a more stable and reliable financial system that supports the country’s economic growth.

Let’s take the findings and discussion approach to appropriate the underlying issues here:

Findings:

1. Widespread corruption:

Various high-profile cases have demonstrated the pervasive nature of corruption among bank executives in Nigeria. For example, the case of Nigerian banker, Erastus Akingbola, who was accused of embezzling millions of dollars from his bank, highlights the detrimental impact of such criminal activities on the country’s financial sector.

Akingbola’s case is not an isolated incident but rather emblematic of a systemic issue that has plagued the Nigerian banking industry.

The widespread corruption and embezzlement not only erode public trust and confidence in financial institutions but also have far-reaching implications that extend beyond the banking sector.

This pervasive corruption undermines the stability of the banking system, contributing to economic uncertainties and hindering the country’s overall development.

As a result, investors and depositors may become hesitant to engage with Nigerian banks, leading to a reduction in capital inflow and potentially stunting economic growth.

Furthermore, the erosion of public trust in financial institutions can exacerbate financial exclusion, as individuals and businesses may opt for alternative, less formal financial mechanisms due to concerns about the integrity of the banking system.

This, in turn, hampers the effectiveness of monetary policy and financial intermediation, hindering the efficient allocation of capital and resources within the economy.

The detrimental impact of bank executive corruption goes beyond financial implications, with social and ethical ramifications.

It perpetuates a culture of impunity and undermines the ethical foundations of the banking industry.

Moreover, the misallocation of funds resulting from corruption deprives the economy of much-needed resources that could otherwise be channelled toward productive investment, infrastructure development, and poverty alleviation.

Ultimately, these high-profile cases of corruption among bank executives underscore the urgent need for comprehensive reforms and robust regulatory measures to combat financial malpractice and promote ethical conduct within the Nigerian banking sector.

Without addressing these underlying issues, the country’s financial system will continue to face significant challenges, hindering its ability to support sustainable economic development and prosperity for all citizens.

2. Economic instability:

The criminal activities of bank executives not only contribute to economic instability but also distort the financial system, exacerbating the challenges that Nigeria faces in fostering a conducive environment for sustainable economic growth.

Reports have revealed alarming instances of money laundering schemes and fraudulent activities orchestrated by bank executives, leading to illicit financial flows and reducing the availability of credit for legitimate businesses.

By engaging in such illicit and unethical practices, these executives undermine the integrity and efficiency of the financial system, perpetuating a cycle of economic upheaval and insecurity.

The impact of these criminal activities reverberates throughout the economy, creating a climate of economic uncertainty and diminishing investor confidence in the Nigerian financial sector.

This erosion of trust hampers the inflow of vital investment and capital, hindering Nigeria’s ability to attract and retain financial resources essential for fostering economic development.

Furthermore, the reduced availability of credit for legitimate businesses stifles their ability to invest, expand, and innovate, ultimately impeding economic growth and job creation.

Moreover, the illicit financial flows stemming from the criminal activities of bank executives deplete resources that could otherwise be channelled toward productive investments, infrastructure development, and social welfare programs.

It exacerbates income inequality, as the diversion of funds and resources into illicit channels deprives the economy of the resources needed to address socio-economic disparities and improve living standards for all citizens.

Ultimately, these unscrupulous practices perpetuated by bank executives undermine the resilience and stability of Nigeria’s financial system, hindering its ability to fulfil its crucial role in supporting sustainable economic growth.

Addressing these systemic issues is paramount in rebuilding investor confidence, enhancing governance and transparency, and restoring integrity to the financial sector, thereby laying the foundation for sustainable, inclusive economic development in Nigeria.

3. Regulatory oversight:

Research has shed light on significant deficiencies in regulatory oversight within Nigeria’s financial sector, highlighting critical gaps in the country’s regulatory frameworks and enforcement mechanisms.

These shortcomings have created an environment where bank executives can exploit loopholes and engage in criminal activities with concerning levels of impunity.

The consequences of these regulatory inadequacies have been felt in the form of financial malfeasance, illicit financial flows, and a pervasive lack of accountability within the banking sector.

A key area of concern is the inadequacy of Nigeria’s regulatory frameworks. The existing regulations have proven insufficient in providing the necessary checks and balances to curb illicit activities among bank executives.

As a result, these loopholes have facilitated the perpetration of financial crimes, ranging from money laundering to embezzlement, undermining the integrity and stability of the financial system.

Moreover, the lack of comprehensive regulatory standards has allowed for the evasion of scrutiny, enabling malpractices to thrive unchecked.

In addition to regulatory loopholes, deficiencies in enforcement mechanisms have compounded the challenges of mitigating financial crimes within the banking sector.

The limited capacity and resources of regulatory bodies have constrained their ability to effectively monitor and enforce compliance with regulations.

This has created opportunities for non-compliance and malfeasance to persist, contributing to the erosion of public trust and the destabilization of the financial sector.

Furthermore, the capacity constraints of regulatory bodies have impeded their effectiveness in detecting and preventing financial crimes. Insufficient staffing, expertise, and technological resources have compromised the surveillance and oversight capabilities of regulatory agencies, making it difficult to proactively identify and address illicit activities within the financial system.

Consequently, the lack of robust monitoring and enforcement has allowed unethical behaviours to go undetected, perpetuating systemic vulnerabilities and threatening the integrity of Nigeria’s financial ecosystem.

Addressing these deficiencies in regulatory oversight is essential to restoring confidence in Nigeria’s financial sector and safeguarding its stability and integrity.

Strengthening regulatory frameworks, enhancing enforcement mechanisms, and bolstering the capacity of regulatory bodies are crucial steps in combatting financial crimes, promoting transparency, and fostering a culture of compliance within the banking industry.

By fortifying regulatory oversight, Nigeria can aspire to create a more resilient and accountable financial environment, ultimately promoting sustainable economic growth and prosperity.

To be continued…

[Featured Image Credit]

According to the World Bank, corruption can reduce a country’s annual growth rate by 0.5% to 1%, and it can significantly deter foreign investment, hampering the overall development of a nation.

Information technology (IT) management offers innovative solutions and strategies to address corruption in developing economies.

By leveraging digital tools and adopting effective IT management techniques, governments and organizations can mitigate corrupt practices and promote transparency and accountability.

Here are some key approaches and examples of how IT management can play a pivotal role in combating corruption:

1. E-Government Initiatives in Estonia:

Estonia is known for its successful e-governance initiatives, which have significantly reduced corruption and increased government efficiency. The country’s digital transformation includes initiatives such as e-tax, e-residency, and digital signatures, which have streamlined processes, minimized paperwork, and reduced opportunities for corrupt practices.

2. Data Analytics for Fraud Detection:

Data analytics can play a crucial role in identifying and preventing corrupt activities. For instance, in Brazil, the government used data analysis tools to track public spending and identify irregularities in public contracts. This approach led to the identification of fraudulent activities and resulted in significant savings for the government.

3. Transparent Procurement Systems in Georgia:

Following the Rose Revolution in 2003, Georgia implemented a series of anti-corruption reforms, including the introduction of an e-procurement system.

The system, known as ProZorro, allows for transparent and open bidding processes, reducing the risk of corruption and improving the efficiency of public procurement.

4. Citizen Engagement Platforms:

The use of technology can empower citizens to report instances of corruption and hold public officials accountable. For instance, in Kenya, the mobile platform Huduma provides citizens with a channel to report cases of bribery and extortion, creating awareness and enabling authorities to take swift action against corrupt practices.

5. Strengthening Cybersecurity in Ukraine:

Ukraine has been vulnerable to corrupt practices, particularly in the cybersecurity sector. However, the government has made significant investments in strengthening cybersecurity measures, including the establishment of the State Special Communications Service, to protect critical infrastructure and public data from corruption and cyber threats.

6. Capacity Building and Training in India:

India has been focusing on capacity building and training programs for government officials to enhance their IT skills.

These initiatives aim to improve digital literacy and ensure that officials can effectively implement e-governance initiatives and anti-corruption measures.

In conclusion, leveraging information technology management approaches can significantly contribute to combating corruption in developing economies.

By implementing transparent systems, data analytics, e-governance initiatives, and citizen engagement platforms, governments can enhance accountability, reduce corrupt practices, and foster sustainable development.

Furthermore, investing in cybersecurity and capacity building can further strengthen the resilience of governance systems, ultimately leading to greater transparency and integrity in public administration.

*Prof. Ojo Emmanuel Ademola is the first Nigerian Professor of Cyber Security and Information Technology Management, and the first Professor of African descent to be awarded a Chartered Manager Status.