Mrs. Folorunso Alakija, the Group Managing Director of Rose of Sharon Group and Executive Vice Chairman of Famfa Oil, has expressed concern over the federal government’s proposed increase in Value Added Tax (VAT) from the current 5% to 7.5%.
She voiced her concerns during an interview with THISDAY at the graduation ceremony of 67 students from the Folorunso Alakija Skills Acquisition Centre, located within the College of Technology, Yaba, Lagos.
According to her, “Raising VAT would make it more challenging for entrepreneurs to achieve their desired level of profitability.
“However, tax is essential for nation-building, as it represents a significant source of income for the government. No government can function effectively without tax revenue—provided that the funds are reinvested into critical sectors and are not misused.”
Addressing the broader challenges entrepreneurs face in Nigeria, Alakija identified unreliable electricity as the most pressing issue.
She stated, “In my opinion, the primary obstacle for Nigerian entrepreneurs is electricity, not funding. We’ve seen individuals, including women, start businesses with as little as N1,000 and grow them into multi-million-naira enterprises. This proves that while capital is important, electricity is vital.
“There are very few businesses that don’t rely on power. We all need electricity. The federal government must prioritize solving this issue—whatever it takes. It’s critical for our economy.
“When foreign investors consider where to invest, the availability of stable electricity is a major factor. The lack of it is a deterrent. The government must take urgent action.”
Commenting on the impact of her skill acquisition centre, she emphasized the value of the opportunity given to the graduates.
“This opportunity is a blessing from God,” she said. “Many people pray for such a chance but never receive it. These graduates are fortunate and must make the most of it by applying what they’ve learned.
“This is their path to financial independence—to support themselves and their families. They must not take it lightly. Just because it was given to them easily doesn’t mean they should waste it.”
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