As the effects of economic hardship bite harder, Nigerians have been urged to focus on themselves – on what they can do, to make a difference.
Finance and entrepreneurship expert, Dr Ahmed ‘Tunde Popoola, made this call at The Companion, Lagos District Conference on Micro, Small and Medium Enterprises.
The session was organised under the theme: “Building a stronger future for Nigeria” and lecture topic: “Survival Strategies for MSMEs in Nigeria”.
In his welcome address as the Chairman at the Conference public lecture, Dr Popoola, who is the Managing Director/CEO, CRC Credit Bureau Limited, declared that there is no right or wrong time to be in business, adding that “every time is right”.
Dr Popoola restated: “businesses are birthed, and businesses die all the time irrespective of time. So, it’s not about the time”.
He affirmed that it is not about the business or the sector, noting “there is no sector you operate in the Nigerian economy that there’s no space to thrive if you do the right things at the right place and right time for the right person, with most things now digital”.
Dr Popoola asserted: “It is important to know that you are in business to make money. The business of a business is to create wealth. To create wealth means to operate profitably over time. That is what is called sustainability. And to do this, you have to deliver Value.
“ That’s the secret of sustainable businesses. Focus, differentiation, cost leadership, ethical behaviour, succession planning, and avoiding unnecessary risk-taking are some of the secrets of a sustainable business.
He stressed that a business is a marathon and not a sprint, hence, he charged MSMEs players to have an enduring business, as well as secrets that have been tested.
Earlier, Dr Popoola pointed out that the theme of the Conference is apt, considering the state of things in Nigeria today.
He admitted that it is indeed a trying period for most people and businesses, noting perhaps except for a few political class, the salary earners and business owners are feeling the heat, through high cost of living, cost of doing business, government policies, behaviour of government, as well as Human Resource issues,
“In the circumstances, focusing on the MSMEs is not out of place. Most of us are involved with MSMEs as owners, employees, advisors, and vendors…” Dr Popoola reiterated.
The Guest Speaker, Dr Jubril Salaudeen, in his presentation warned participants and Nigerians to moderate their expectations from the government on businesses, declaring that “government doesn’t grow economy”.
He stressed that focus, creativity, resilience and determination on the part of business owners and prospective players do the magic and make MSMEs grow, thrive and sustain them.
Making several international and local instances, Dr Salaudeen, who is the Business Strategist, Celerant Values Limited, Lagos, cited funding and poor understanding of how money travels and behaves as part of challenges facing MSMEs owners in Nigeria.
To this end, Dr Salaudeen, who is a specialist in Islamic Finance and Entrepreneurship advocated for a paradigm shift and more collaboration among MSMEs actors, for good results and sustainability.
He faulted South West Ummah, stressing that much more still needed to be done, with respect to attending to the business needs of Muslims.
While calling for succession planning by business owners, Dr Salaudeen challenged Muslim organisations to change the face of their Dàwah – by ensuring that Quran texts are operationalized for business strategies, not reducing them for only spiritual reference and purpose.
He specified that The Companion – Association of Muslim men in business and the professions, by now supposed to have incubation centres – to train and re-train potential and prospective MSMEs operators, so as to grow and advance the sector – to support the drives for sustainable economic growth.
The Amir of the District, Alhaji Olayiwola Ab’Kabir Baruwa, in his welcome address at the Conference, indicated that the topic for this year’s public lecture was in furtherance to the pillar of the group’s core mandate of Economic empowerment, especially as it relates to engaging policy makers and economic managers in innovative ways to solve pressing economic challenges.
He asserted that a significant percentage of any country’s economic segment is MSMEs, just as they constitute the bulk of players in the production of goods and services.
Baruwa said: “MSMEs accounts for about 96% of all businesses in Nigeria and contributes about 50% of the GDP and employs 84% of the country’s workforce according to survey by PWC in 2020. Thus, there is no gainsaying the fact that the growth and development of MSMEs will largely impact the overall growth of the Nigeria economy.
“Without any iota of doubt, our country has been witnessing a tumultuous economic landscape in the last couple of years. Moreover, the economic reforms implemented under the current administration has led to a rash of policy initiatives that have translated into a heightened state of the economy with attendant shock and disruptions to the operations and profitability of most business entities.
“The impacts of the reforms have been felt across the length and breadth of the country especially by Small business owners who are operating under a harsh environment characterised by high operating costs, lower operating margins, high unsold inventories arising from low purchasing power of consumers and galloping inflation rates”.
He lamented that these economic indicators have stifled the growth and development trajectory of SMEs in the country with attendant consequences of high youth unemployment rate and endemic poverty rate in the country.
The District’s Amir advised the country’s policy makers to devise a strategy to reposition Nigerian MSMEs by providing a more conducive operating environment by ensuring provision of reliable and affordable electricity supply, elimination of double and sometimes triple taxation while incentivizing productivity by granting tax rebates to those MSMEs that are able to achieve certain objectives such as additional new workers employed in a quarter.
Similarly, he stated that it was germane to advise MSMEs to adopt measures that would enable them to be resilient with innovative and sustainable business practices, while avoiding the pitfalls of aggressive business expansion using high interest rate loans rather than relying on other alternative sources of finance such as loans and equity from family and friends.
“It is imperative for me to draw our attention to the high food inflation currently ravaging the nation. The latest statistics from NBS indicate that food inflation as at July 2024 stood at 39.53% which has led to unprecedented rise in prices of basic foodstuffs in the country.
“The resultant effect is the astronomical level of hunger in the land which led to the recent nationwide protests. A nation that is blessed with vast arable land with good climatic and hydrological conditions as Nigeria should not be in such a dire state of food insecurity” Baruwa declared.
He called on three tiers of government to urgently implement far reaching policies and measures to revolutionise and modernise the country’s agricultural practices by embracing mechanised farming while farming inputs such as seedlings, fertilisers and herbicides should be provided at subsidised costs.
He stressed: “It is pertinent that State Governments that are the constitutional custodian of lands in the country should urgently provide agricultural lands and incentivise our teeming youth to embrace modern techniques and agricultural practices such as greenhouse farming, urban vertical farming and hydroponics technology which will ultimately increase the quantum of food produced in the country such that we can begin to export excess foods to other African countries after achieving self-sufficiency in local food production.
Alhaji Baruwa emphasised that the government at all levels should ensure provision of adequate security, across the agricultural belts of the nation, so that farmers can be assured of the safety of their lives and businesses.
“No doubt, a faithful implementation of these measures will go a long way in ameliorating the hyper food inflation in the country and make quality foods accessible and affordable to the vast majority of the populace” Amir affirmed.
The Conference public lecture was attended by leaders of The Companion, including its National Amir, Engr. Kamil Olalekan, the Boat Chair, Alhaji Waliyu Onibon, BoT member, Alhaji Yunus Abdul Kareem, District Usrah Coordinators, representatives of various organisations, including The Criterion (Association of Muslim women in business and the professions), led by its Lagos District Amirah, Alhaja Maryam Shaba.
Other groups ably represented were: NASFAT, FOMWAN, NACOMYO, Muslim Teachers Association of Nigeria, MUTAN, Muslim Lawyers Association of Nigeria, MULAN, The Muslim Congress, Al-Muminaat and Muslim Public Affairs Centre.
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Meanwhile, the Conference plenary session has elected new executives to run the affairs of the organisation for the next two years.
The new executives include: Alhaji Olayiwola Ab’Kabir Baruwa, Amir; Engr. Musibau Olalekan Sanusi, Naibul Amir; Akolade Tajudeen Mukaila, Secretary; Abdul Hameed, Assistant Secretary; Tajudeen Balogun, Publicity Secretary.
Others are: Alh Munir Adekola Olusanya, Financial Secretary; Abdul Gafar Dare, Treasurer; Alhaji Abdul Fatai Okalanwon, Welfare Officer; Imam Monsur Abdul Azeez, Dawah Director and Mosur Oyebola, Internal Auditor.
The new leaders have since been sworn into office.
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