UNILAG, First Bank Demand Practical Approach to Ethics, Taxation in Informal Economy

UNILAG and First Bank have called for a practical approach to business ethics, taxation and regulation to support Nigeria’s informal economy and small businesses.

The call was made at the yearly public lecture of First Bank Samuel Asabia Professorial Chair in Business Ethics, held at the Ade Ajayi Auditorium, University of Lagos.

The lecture, titled: ‘Ethical paradoxes, small businesses, and the informal economy,” was delivered by the Chair Occupier, Prof. Kenneth Amaeshi.

Speaking at the event, First Bank Managing Director, Olusegun Alebiosu, said the informal sector remained critical to Nigeria’s economy because it provides livelihoods, employment and opportunities for millions of Nigerians.

He, however, said many small businesses were also “survivors,” creating an ethical dilemma for entrepreneurs who must constantly balance survival with responsible business practices.

Alebiosu asked how ethical business practices could be promoted among enterprises that often operate primarily for survival without making compliance an additional burden that threatens their sustainability.

He said ethics and sustainability should not be treated as competing priorities, stressing that “ethical business is a sustainable business.”

He said the bank’s longstanding support for the Samuel Asabia Professorial Chair reflected the institution’s belief that responsible leadership and ethical conduct were essential to building enduring institutions and a stronger Nigerian economy.

In her remarks, the Vice-Chancellor, Prof. Folasade Ogunsola, said the partnership between the two institutions was founded on the conviction that business excellence must be anchored on competence, integrity, responsibility and trust.

She recalled that the Chair was established in 1994 in honour of the first Nigerian Managing Director of First Bank, Dr Samuel Asabia, who was remembered for his high ethical standards.

Ogunsola said the Chair remained without an occupier for several years because business ethics was then a relatively rare and emerging specialised field of study in Nigeria.

Delivering the inaugural lecture, Amaeshi examined the ethical contradictions that arise within Nigeria’s informal economy, particularly where individuals and small businesses operate under economic pressure, weak institutional structures and competing obligations.

He used everyday experiences to demonstrate how ethical choices can become complicated when individuals are caught between formal rules and the realities of survival.

Amaeshi argued that ethical dilemmas should not always be viewed as straightforward choices between right and wrong. Rather, individuals can find themselves confronted by competing values and responsibilities, making the ethical decision considerably more complex.

He questioned how governments could expect greater tax compliance from small businesses when many operators have limited confidence in the institutions that collect and use public revenue.

He argued that the challenge was not simply that Nigerians disliked paying taxes; rather, taxpayers possess varying degrees of tax morale, with some willing to pay because they regard taxation as a civic responsibility, while others demand evidence that the government is accountable and will use public resources responsibly.

He, therefore, identified trust and accountability as important factors in improving tax compliance.

Amaeshi argued that the government must recognise the realities under which informal businesses operate and develop policies that encourage compliance rather than relying exclusively on punitive enforcement.

He also advocated a broader approach to regulation, in which government regulation is complemented by self-regulation and responsible business practices.