Olubukola Asafa: Why SMEs Need Easy Access to Affordable Loans, Grants

Olubukola Asafa is the Chief Executive Officer of OBA Couture, a manufacturer of premium ready to wear clothing and accessories, footwear and handbags. Asafa, a 2011 Youwin beneficiary of the federal government support grant to small business startups and young enterprises, shares her thoughts on the African fashion market, the opportunities, and the challenges which seem to have dampened entrepreneurial spirit. She suggests ways to further assist SMEs in Nigeria. Ferdinand  Ekechukwu brings the excerpts

What is it like to run the kind of business you are doing now?

The kind of business I am doing now, in which we manufacture handmade handbags, footwear and ready to wear clothing offer dynamic and vibrant opportunities and rewards, but also come with its challenges. Some of the opportunities are the growing market. The Nigerian fashion industry is a part of a growing African fashion market with an increasing interest locally and internationally, our large youthful population, our rich cultural heritage and our entrepreneurial spirit. Some of the challenges include, poor and inadequate infrastructure such as erratic power supply, poor road networks and inconsistent water supply all these slow down the pace of work and make it difficult to meet production timelines. Another challenge is access to funding: getting adequate financial support to expand and economic fluctuations.

Do you locally source the raw materials for your products?

Some of our raw materials are locally sourced and some are imported.

With the industry still import-dependent with finished goods from the Western world are you comfortable with this scenario?

This has been the narrative for a very long time, but I believe this is part of the reason why the fashion industry in Nigeria is booming, because the competition from finished goods from the Western world has only given us fashion designers in Nigeria the opportunity to improve our craft and to differentiate and solidify our brands. At OBA we make use of unique leathers, and unique fabrics that incorporate our traditional and local heritage which makes us stand out uniquely from the finished imported goods. I’m comfortable with the scenario because all things work together ultimately for our good.

These trends must be impacting your profits. However, how has the business ensured it has remained floating since 2011 when it began full operation?

God’s grace has been our number one and key factor to remaining afloat in addition to other factors such as adequate skills and craftsmanship, our products are excellently made by very skilled artisans using age old techniques that date back hundreds of years. Our story has always been the made in Nigeria story, and passion for taking made in Nigeria to the global stage. By expanding our product offering to ready to wear clothing, building an online presence which includes social media and e-commerce has enabled us reach more local and international customers also collecting customer feedback and regularly.

As a winner of N8.2 million Youwin grant competition how did this impact your business?

When I received the N8.2 million grant from the federal government back in 2011, I was only a start-up; I had just started the business only five months before and registered the company. Winning the grant was definitely a plus to the business, I was able to buy some assets and also travel to Italy to get trained by one of the best shoemakers in the industry.

From your position now, how do you think SMEs should be assisted?

SME’s are a crucial element for economic growth and so they must be assisted in a variety of ways such as providing easy access to affordable government backed loans and grants, offering targeted mentorship and training programmes to improve business management and technical skills, facilitating networking opportunities, fostering an enabling environment for innovation and entrepreneurship and facilitating access to markets both domestically and internationally.

OBA Couture has exhibited its pieces in the United Kingdom and in February 2024 you started stocking your products in New York City, USA. Why this trajectory?

Firstly, it has helped to improve our brand visibility and credibility on a global scale, attracting attention from the international media and consumers. Secondly, we had to start thinking outside the box as to how to make more foreign currency earnings because of the devalued naira. Thirdly, it opens us up to larger and more diverse markets which will potentially increase our customer base and revenue potential. Lastly, it helps to diversify our revenue stream and reduce dependence on the local market. And overall propel us to new heights on our journey to building a sustainable global brand.

How has this shown OBA Couture’s consistency over the years?

 Our vision has always been to be world leading manufacturer and creator of authentic and distinctive premium made in Nigeria goods. We are consistent with our vision and every day we are getting closer to its actualisation by the special grace of God.