Analyses of Major Business Constraints in Nigeria

Abstract

The giant stride of the Central Bank of Nigeria in development financing is receiving serious commendation locally and internationally. However, the need to identify major target areas of intervention remains major research concerns in terms of constraints and challenges of businesses in Nigeria. This study therefore was aimed at identifying major business constraints in Nigeria. The stratified random sample of 1070 small, medium and large manufacturing and non-manufacturing firms in all 36 states in Nigeria and the Federal Capital Territory (FCT) was used for the study. The study found that lack of technical know-how constitutes about 37.4% of business constraints in Nigeria, followed by unfavorable business climate contributing about 12.3% and access to finance constituting about 6.5%. Based on these findings, the study recommends more intervention in the area of technical know-how in terms of material input, equipment and labour related concerns. Improving policies as well as political system in the country will further improve business survival in Nigeria. Further studies may be required to determine other business constraints bedeviling Nigerian businesses that were not captured in this study.