There are many possible reason why many businesses fail in Nigeria. I will list a few below and would like you all to contribute.

1) High Cost of Operation
2) Lack of Appropriate planning
3) Economic reasons
4) Political Reasons
5) Lack of data and statistics , and so on

What do you think?

Well, it depends on the individuals but NO 1 is the main problem that makes most of the business in Nigeria fail.

Definitely lack of appropriate planning. Which is partly caused by lack of available data.
If you have a good business plan, the high cost of operation will not take you by surprise!

Seun:

Definitely lack of appropriate planning. Which is partly caused by lack of available data.
If you have a good business plan, the high cost of operation will not take you by surprise!

Seun I beg to differ , I am not insinuating that planing is not necessary but emphasizing even when all other variables are available cost of operation here in Nigeria is the main set back.
I have seen start up that got going well, but seeing all the profits going to cost of operation eg diesel for power, lent, maintenance of equipment which most of the parts are importated and so on.
Remember even when could predict other variables, you can never predict cost of operation until you are into the business.

^^^^
Seun is right what u need to build into your adequate plan is what project managers call contingency plans.

mrperfect:

Seun I beg to differ , I am not insinuating that planing is not necessary but emphasizing even when all other variables are available cost of operation here in Nigeria is the main set back.
I have seen start up that got going well, but seeing all the profits going to cost of operation eg diesel for power, lent, maintenance of equipment which most of the parts are importated and so on.
Remember even when could predict other variables, you can never predict cost of operation until you are into the business.

a lot of things go into the planning stage. It is at the planning stage that you factor in so solution to the likely problems that may come up.
so seun is right

Lack of reliable data and statistics is the most relevant reason why businesses fail. Even quoted Nigerian companies deliberately give inaccurate financial statements to confuse people and you can't plan on their data. Let's analyze things further

1) High Cost of Operation ------- The cost of operation can be fairly predicted if you have reliable data

2) Lack of Appropriate planning -------- How can one plan on data that is wrong?

3) Economic reasons -------------- This is too vague

4) Political Reasons --------- I will rather re-state this as lack of political will on the part of the government to run things in a businesslike manner. As long as there are policies that over-pampers those parts of the country that are not productive, Nigeria will never leap forward economically. Let us learn from Lagos governor, Fashola.

In addition to my points above, see the last population census? See all the data manipulations? See Ekiti-State re-run election?See how deserted those villages/Local Governments are even though the last census figures says that whole area is FILLED with people? How can you now plan on the data supplied by the census figures?

Copycatting other peoples business concepts is one major problem by jumping into a business because others are doing it

Not doing a market survey before embarking on a business venture

Inability to remain focussed and overcome the challenges in the business

I am agree with you that proper planning for improving any business is necessary.Always makes proper strategies for business and select a right person for business.