The Lagos Chamber of Commerce and Industry has described the donations by the Coalition Against COVID-19, being spearheaded by Aliko Dangote, as a reflection of the private sector’s commitment to the ideals of business sustainability and corporate social responsibility.
The Director-General of LCCI, Muda Yusuf, while speaking with the media in Lagos, said businesses operate in a society and the well-being of a business is dependent, to some extent, on the well-being of the society in which it operates.
According to Yusuf, a business can only be as good and as stable as the community in which it is operating.
He said: “Social stability is crucial for business sustainability. This private sector intervention is also significant because the government has serious funding limitations at this time. The COVID-19 pandemic is a major threat to humanity and demands that all hands must be on deck. I must also commend the leadership demonstrated by Alhaji Aliko Dangote in mobilising the private sector for this historic intervention.”
Yusuf underlined the need for the private sector fund to be well-utilised in order to achieve its purpose.
He said: “The spending priorities of the money raised should be guided by a robust needs assessment as established by medical teams in the front line of managing this pandemic. They know better what the gaps are and this should guide the targeting of expenditure. This approach will also make it possible to get better outcomes from these donations.
“It is not advisable, in my view, to hand over cash to the government or its agencies. It is much better to identify the critical needs and provide resources directly for the acquisition of the needed items – medications, food items and personal protective equipment (PPE). Delivery and execution of the intervention projects are much faster and efficient.”
Yusuf urged more companies to contribute to the private sector fund to support the Federal Government’s effort in combating the coronavirus pandemic.
He said: “I will appeal to companies that have not joined the coalition train to please do so. They should take a cue from the private sector coalition led by Alhaji Aliko Dangote. Any socially responsible organisation should be part of this fight against COVID-19. This is not just a philanthropic gesture; it is a matter that borders on business sustainability.
“The success of a business is not measured only in terms of the returns to shareholders; it is also assessed by the impact that the business makes on other stakeholders. One of these stakeholders is the society and the environment in which the business operates. We need to understand and embrace the principle of total stakeholder management – recognising the importance all stakeholders in a business.”
Yusuf stressed the need for the Federal Government to invest massively in Nigeria’s health sector.
He said: “The biggest challenge to the health sector in the Nigerian economy is the low level of investment in the sector. Government investment in the sector is one of the lowest you can find anywhere in the world. Public health facilities are in a parlous state and the health sector is daily suffering from brain drain, with our doctors and nurses going out of the country on daily basis. Therefore, there is need to scale up budgetary allocation to the health sector by all levels of government. The current level of budgetary provision for health is extremely low.
“Secondly, government should take urgent steps to ensure compulsory health insurance scheme in the country. All over the world the funding of the health sector is dependent largely on health insurance as it generates a large pool of funds to support the health sector. The health insurance also will provide a more robust effective demand for health services.
“Currently, most of the health services enjoyed by the citizens are paid out of pocket and this has severely limited the effective demand for health care. Once effective demand is generated through the introduction of the health insurance, there will surely be a good supply side response from private investors who will invest in the health sector. This is something that we need to do very urgently to salvage our deteriorating health sector.”
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