MD/CEO, ZEND TECHNOLOGIES LTD.
The informal sector in Nigeria is said to account for about 65% of Nigeria’s economy making it the largest sector. Sadly, a huge portion of the sector is outside the tax bracket. Many informal sector businesses don’t pay taxes at all. This has been attributed to a number of factors ranging from government’s lack of accountability about taxes, reduced tax enlightenment among small business owners, among others, TheMediaGood Newspaper can report.
Mr. Victor Kalu, the Managing Director/CEO of Zend Technologies Ltd, a company appointed by Delta State Internal Revenue Service and saddled with the responsibility of tax collection from the informal sector on behalf of Delta State Government spoke indepth exclusively with TheMediaGood Newspaper about the informal sector and its economic potentials for Nigeria. ‘One of the problems of the informal sector is that most people don’t even know how much they are earning because they are not organized and regulated. A barbing salon can save N5000 per day, a mechanic can save N10000 per day, how many people with jobs can make such per day?’
‘We have a lady that makes boli, has 4 children, and her husband had left. One of our staff told her that you are making so much even with what you do on the streets. She was advised to start saving N1000 per day. Then she herself move it to N2000 per day. By 6 months, she had saved N500,000 which she used to rent a shop, get more equipment and upgraded her business.’
‘One other problem of the informal sector is that there is no upgrade of skills. You will see an electrician or tiler who thinks he knows it all so we need to help them upgrade on how to deliver excellent service.’
On what Zend Technologies Ltd is out to achieve, Kalu told TheMediaGood Newspaper, ‘My background is in the FMCG sector, then I moved to telecoms before starting this business. We empower the informal sector by taking services that are hitherto not available to masses to them.’
‘The informal sector has not been properly harnessed in terms of their contribution to the economy so Zend Technologies Ltd came up with patented technology that can help to bring on board the vast majority of informal sector businesses. Zend Technologies Ltd helps them to organize and then they can contribute to government. We also help to upgrade their skill for the economy.’
His advice to informal sector businesses, ‘The informal sector should not think of themselves lowly. N5000 daily is serious money if you can save it. You have to be on government record to be able to benefit from government. Zend Technologies Ltd has the technology to onboard businesses so that they can contribute their quota to tax.’
For government, he said: ‘Don’t neglect the informal sector. Asaba has the biggest hospitality and entertainment industry and the industry thrives at night. So streetlights are needed for the industry to thrive. The government has to use money to do that. The British Council said in 2010 that the Nigerian people will be its new oil so the government should empower and partner with the informal sector to achieve its goals.’