How is your country's economic situation affecting businesses.

[CALVINDOL]

A country like Nigeria, our current economic situation is terribly affecting the existence of businesses and to be very sincere majority of allegations have been laid to the government about providing for the welfare and for the existence of growing and infant businesses and industries but all these have seems to be no avail. Initially in Nigeria it is not always like this for the welfare of businesses, back in the days businesses usually flourish in Nigeria and in fact Nigeria is absolutely the Homeland of major prosperous businesses but today, the rate of things have totally change the way our foreign investors and have also distort the survivability of small and growing businesses still remaining in Nigeria. Below are the two main consequences from the causes of the present economic situation in Nigeria.

* Increased cost of production: due to the high rate of inflation in Nigeria it has also led to the increased cost of production and the increased cost of individuals to make goods and services to become available to reach the greater public. And as a result of the increased cost of goods and services, the prices of these goods and services have totally become cumbersome and also a burden for final consumers to purchase comfortably.

* Purse foreign investors: the nation is foreign investors from countries like England and United States were totally happy to do businesses in Nigeria. But presently considering the total state of the Nigerian economy and the increased rate of taxation on goods and services, foreign investors have neglected introducing their noteworthy business ideas in Nigeria.

 

[Carpon]

As a Nigerian also, I so much consent with you on this and the current economic situation of the country has a very big mark on Businesses and infact, every other enterprise.

Everything is getting and growing bad as the day goes by and the thing you purchased today at a particular price may be purchased at a multiple of its current price tomorrow. This shows you that the economic state of the nation is crumbling and the daily increasing cost of production is the major cause of all this.

The effect this has on businesses is that their may be a condition called bankruptcy. If you purchase your goods today and sell them, the amount you discover plus the profit you make may not be sufficient to get you another stock because by the time you get back to make another purchase, the prices have greatly increased.

Tasks are getting increased too regardless of all these and this greatly retards the progress of many businesses and even kills some.