In a period when Nigeria is struggling to reboot its fragile economy, traders are losing hundreds of millions of naira to government clampdowns, raising concerns about the best approach to balancing compliance with economic recovery.

 

 

At a time when Nigeria is striving to revive its fragile economy, government clampdowns are costing traders hundreds of millions of naira, sparking debate over how best to balance regulatory compliance with the need for economic recovery.

 

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The Lagos State Government yesterday shut down the Ojota Chemical Market over alleged non-compliance with fire safety directives. The closure comes barely months after the government’s demolition of buildings at the Trade Fair International Market, where traders reportedly lost goods worth millions of naira. Vanguard gathered that the closure of Ojota Chemical Market followed disagreements over the purchase of fire extinguishers. The Lagos State Environmental Safety and Management Control had directed every chemical dealer to acquire a 6kg acid powder fire extinguisher. While the commission offered to supply the extinguishers at ¦ 25,000 each, traders said they could source the same item for ¦ 17,000 in the open market.

 

Despite claims by traders that they had complied with the directive, the commission reportedly accused them of non-compliance and subsequently shut down the market.

 

The traders allege that the commission has since demanded ¦ 10 million — ¦ 5 million from each of the two unions in the market — before reopening the facility.

 

The closure has left hundreds of shops under lock and key, with chemical dealers counting huge daily losses. Many fear the prolonged shutdown could cripple their businesses, especially as the economy continues to grapple with high inflation, weakened consumer demand, and sluggish growth.

 

Observers say while safety compliance is critical, shutting down major trading hubs at a time when the government is pushing for economic recovery may be counterproductive. “The question is not whether compliance is important; it is. The question is whether this is the best way to enforce it in a struggling economy,” one industry stakeholder noted.

 

For the traders in Ojota, the losses are already mounting, and many are left wondering if the heavy-handed approach is the right path for a state that prides itself on being Nigeria’s commercial nerve centre.