‘Illegal Competition May Cost Nigeria N200bn Annual Earning From Fast Foods’ | Independent Newspapers Limited
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‘Illegal Competition May Cost Nigeria N200bn Annual Earning From Fast Foods’

Posted: Aug 3, 2016 at 1:34 am   /   by   /   comments (0)

Onche Odeh,



The proliferation of illegal competitions may cut Nigeria annual earning of over N200 billion from fast food businesses, the Association of Fast Food Confectioners of Nigeria (AFFCON), an umbrella body of Quick Services Restaurant (QSR) in Nigeria has warned.

The Abuja chapter of the association, in a position paper presented to the Federal Capital Territory (FCT) through the Abuja Metropolitan Management Company (AMMC), lamented that illegal fast foods joints, multiple taxation among other problems are crippling their businesses, hence their appeal for intervention.

Chairman of the Abuja Chapter of the association, Latifat Balogun, who led the members to the office of the Coordinator, AMMC, stated that, “The Association of Fast Food Confectioners of Nigeria (AFFCON), an umbrella body of quick services restaurant (QSR) in Nigeria, contributes annual revenue of about N200 billion to the growth of the economy and our members amongst other things, also paid about N1 billion in taxes and levies.”

Speaking further, Balogun noted that the industry, dominated by over 100 small-medium sized indigenous brands with over 800 outlets spread across the nation, has a massive growth potential, that is currently under threat by road side fast food vendors.

She said, “It’s an established fact that we have a thriving road side restaurant operator otherwise known as Bukas or Food vendor and itinerant food and snacks sales people who contribute nothing to the coffers s of the government, yet they operate and exist thereby pushing legitimate restaurant owners who are committed tax payers out of operation.”

The association which was appreciative of the quick response to its demand for audience with the Minister of Federal Capital Territory and the subsequent invite to meet with the minister’s representative is upbeat about a brighter future for the owners of legitimate fast food businesses.

Highlighting some of their challenges, Balogun said, “In the process of our operations over time, we have experienced key issues that affect all our members. These include inadequate power supply, which gulps more than 30% of the gross profit we make.

“This on its own is a major problem, couple this with the effect it has on operational standard, preservation of goods and its delivery, one cannot over flog the negative impact this has on the growth of the industry.”

On multiple taxation, she said, “Our members are law abiding citizens that believe in contributing their quota to the development of the Nation by paying their tax and levies as at when due. However, we are also business people and investors, but multiple taxation has stunted our growth and have caused us to stop our development and expansion”.

This Balogun said include the use of Building/Occupier Tax in form of obnoxious Tenement rates, Business Permit, shop & kiosk operational permit among others.

“Business investors have to contend with numerous taxes, Levies, bills among many other issues that are just a tip of what business owners go through. When you add this to the present economic situation, and using the Minister for finance’s words that our economy is undergoing recession, we can only imagine what our members are going through,” she said.

The association’s Abuja chairperson also lamented the inappropriate attitude and High handedness of FCT staff & agents, especially the, suggesting the reconstitution of the Trade Task Force, a multi-stakeholders engagement platforms to consist of government staff and business owners to monitor implementation of policies and its effect on business development within Abuja metropolis.

“Federal Capital Administration should create an avenue where certain social responsibilities is carried out by organisations for tax concession or where target are set in terms of compliance with tax duties imposed and rebates or discount is granted at the attainment of such targets,” Balogun suggested.