OPPORTUNITIES IN A CRUMBLING ECONOMY

Amid the hard times, there are so many opportunities out there, writes

AISHA SHUAIBU

“A person who can dominate during rough times is a person who can dominate, period.” – Gary Vaynerchuk (Crush It, 2009)

Nigeria ranked 131st among 190 world economies in the annual World Bank Ease of Doing Business (EoDB) Index in 2020; dropping from its 145th position in 2019. Many Nigerians believe that the private sector is the only thing working in the country. Despite the economic instabilities, new businesses seem to be emerging from all corners of the country as industries experience growth through innovation, investment and expansion. There is no big secret as to why and how a business should survive through economic turmoil, as most have not, since the Covid-19 pandemic. Crisis, however, breeds opportunity and business operators must begin to creatively make the best of the tough times. There is an African proverb that says, “smooth seas do not make skilful sailors”. Amidst challenges, are hidden opportunities that when navigated for benefit, could build successful, dominating, and adaptable businesses.  

It is common knowledge in the business world that if a Micro, Small & Medium Enterprise (MSME) is able to survive its first two years, it will likely hang on for the long run. According to a study on the growth of MSMEs in Nigeria though, 80% of them fail in their first three years due to factors that have remained persistent in the country: access to funding, unfavourable government regulations and policies, inadequate infrastructure, employability, etc. It is indeed difficult to look at Nigeria’s apparent improved ranking on the World Bank Index with a sense of contentment. Businesses are crippled daily by these challenges, whilst also dealing with increased operating costs (inflation rate reported to be 19.64% as at July 2022), security concerns, unstable exchange rate and foreign exchange scarcity. Nigeria’s non-oil sector contributed to 91.22% of the nation’s GDP in 2020, primarily driven by information and communication (telecommunication and broadcasting), mining and construction, agriculture, real estate, and manufacturing (National Bureau of Statistics, 2020). The private sector is the engine of growth and a key stakeholder in the development of our economy. A stable and thriving private sector will lead to investment opportunities, job creation, technological advancements, tax revenue and capacity building. Fact of the matter is that there is no Nigeria without successful Nigerian businesses. 

While we are at risk of very slow economic growth over the next couple of years, even bigger challenges await us from our reluctance to raise alarms about the elephant in the room in form of climate change. President Muhammadu Buhari reportedly pledged the amount of $550,000 towards the construction of the Great Green Wall of the Sahara and Sahel Initiative where a wall of trees is to be created across 11 states to prevent desertification and strengthen climate resilience. The government aims to rehabilitate 225,000 hectares of land under this project (United Nations Africa Renewal Information Program, 2021). Nigerians, having lived through failed promises from the federal government many times, must hold the President and Minister of Environment accountable should this agenda not be delivered. 

For over a decade now, extreme weather conditions have led to drought and floods, leaving communities displaced, threatening national food security and costing the country billions of dollars in damages. Now more than ever, businesses should be playing their part in combating climate change by managing waste, promoting the culture of recycling, minimising pollution and educating their workforce on the importance of taking care of the environment. Claiming oblivion is reckless and irresponsible when the air that we breathe, the food we eat and the land we live on may be compromised at any moment. The government, alongside the relevant agencies need to aggressively outline and communicate their crisis management plan to lessen the future impact of environmental changes to our lives and property. The United Nation’s 2030 Sustainable Development Goals (SDGs) are equally relevant to our wellbeing in Nigeria as it is to the rest of the world, and it is our right that the Nigerian government works towards achieving them. For businesses, the government could encourage environmentally conscious practices through a reward system in form of tax incentives that business owners will surely find favourable. 

A problem-solving mindset is undoubtedly a prerequisite for success in Nigeria. This is due to our overwhelming pool of problems that need resolving and MSMEs could greatly drive that mission. While it may seem that new businesses are emerging at a rapid pace, they are closing down just as quickly because the idea itself is not sustainable towards its target market. A business should look beyond what has been done before and ask “how can things be done differently and how can solving problems be marketable?” The conversion of ideas to solutions that cater to the mass population is not an impossible mission but a creative challenge for every business vision to include a social impact element. Take the business of sports as an instance; how can we promote a sports culture across the nation that could also lead to health and wellness among youth, keeping them away from drug abuse and idleness? In 2021, the National Drug Law Enforcement Agency (NDLEA) reported 40% of Nigerian youth between the ages of 18 – 35 years were heavy drug users. 

These are dangerous figures for a youth populous nation. A strategic business approach could be to generate revenue through sports facilities, which will benefit both state governments and the people. There would instantly be a growing interest in sports and sporting careers and young people would have the facilities to fuel that. This would also create more demand in the job market for sports administrators, officials, doctors, lawyers and industry experts. Nigeria is the largest exporter of football talent in Africa and the fifth largest in the world. Sports infrastructure will aid the eco-system of sports in Nigeria to develop our grassroot athletes on home soil as opposed to outside the country like our current world champions are being subjected to.

Sports entertainment is big business that can create room for corporate collaborations, foreign investment, tourism opportunities and related branches like broadcasting, merchandising, ticketing, licencing, etc. A football stadium with a 60,000-person capacity is a major ground for business and advocacy activities e.g. getting youth participation on social issues. Sports is a world leading promoter of unity, togetherness and peace through mutual interest, loyalty and patriotism. 

To challenge the mission and vision of MSMEs in Nigeria, we must begin to critically think of developing more solution-based business models. It makes sense to look into security services, alternative energy, logistics management, investment consultancy, technology and digital services, export services and specialised business services as channels that serve the current needs of the country. One thing we must not forget is to also try to tackle intangible issues like fake news cycles by using data acquired through our businesses to report fact, debunk false information and promote understanding. MSMEs who observe market trends, buying culture and behavioural habits will be able to create room for greater connection to the people through enterprise. 

All hope is not lost for the most resilient country in the world. To truly maintain the status of being the giant of Africa, we must rise towards our true potential through the rough and ridged road of progressive growth. In the fight for survival, only the strong will continue whenever we are tested. 

 Shuaibu is a member of THISDAY Editorial Board