By default, doing business in Nigeria make you fraudulent.
You go to a bank to get funding for a business at 26% interest rate plus 3% admin charges making a total of 29%.
You borrow a million naira from a bank to do business and have to pay back at 29% (interest and bank charges), meaning the bank get 1.29million of the proceeds in the end.
You pay 10% tax and 5% VAT, making a total of 44% in all. what does this translate to? That you need to sell at 160-190% of your cost price to be able to make profit.
Why do we have banks giving facilities at 26% interest rate in Nigeria while we have their couterparts in other countries giving theirs at as low as 3-6%.
Now from september 1st, banks will re-introduce N65 interbank ATM withdrawals, no one is saying anything about it. The CBN is the regulatory body for banks, who regulates the CBN or are they allowed to just wake up from their whim and introduce charges to their customers?