April - June 2017 •
The Lion King
• 9
BUSINESS
assuring investors that the government would provide a
congenial environment for investors whilst also providing
them with some incentives to aid their start up. Some of
these incentives ranged from tax holidays to free land.
Nigeria, on the other hand has a lot of catching up to do
if it is to woo some of these companies and indeed new
ones back within its shores.
For the most part of the last decade in Nigeria’s
democracy, there has been significant deterioration of
infrastructure. The situation has become so challenging
that most businesses are no longer able to keep cost
of operations within tolerable levels due to increased
overhead costs in providing the power required to keep
machines churning. Hardest hit is the manufacturing
sector due to the high power consuming nature of its
activities.
The recent devaluation of the naira amidst scarcity of
foreign exchange has further aggravated the adverse
situation being faced by multinationals operating in
Nigeria. In their bid to survive, most of the businesses
in the manufacturing sector have resorted to granting
inter-company loans from their parent offices abroad
most of which are yet to be repaid or are being repaid at
weaker naira levels with the attendant negative impact
on the performance of the Nigerian franchise. Many
international airlines have also complained that their
funds are trapped in Nigeria as they have been unable
to access the foreign exchange market to repatriate
their revenues from Nigeria.
Corruption on the part of public officials has also been
a bane of doing business in Nigeria with reports of
public officials demanding huge bribes in exchange
for granting requisite licences to businesses seeking to
operate in Nigeria. The government has a huge role to
play if the trend of relocation of head office from Nigeria
is to be halted. Some of the ways in which it can be
addressed include:
Infrastructure:
A lasting solution to the power
problem must be found, otherwise, businesses operating
in Nigeria will continue to experience comparative
disadvantage with their sister companies operating in
Ghana and other major African cities. The rail project
connecting the North and Middle Belt states where most
of our agricultural produce comes from, with the port
cities and commercial centres in the South West must
also be prioritized.
Scarcity of Foreign Exchange:
The current policies
of the Central Bank of Nigeria where constant supply of
FX for specific sectors within the economy, coupled with
Federal Government support via fiscal policy should see
this matter resolved within a short time frame.
Unfriendly policies:
In drafting its policies on
business environment, relevant government agencies
must consider investors and entrepreneurs interests as
well as the overall national interest. Due process must be
followed and the ultimate impact of these policies must
be well thought through before publication. Furthermore,
the country must seek to sell itself to potential foreign
investors either via road shows, advertisement via
international media platforms, etc.
Illustration by Photoroyalty / Freepik
3 MARKETING
TIPS FOR SMALL
BUSINESSES
BY ANTHONY OSAE-BROWN
Customer service
is the number
one competitive strength for any
start-up. Every new business is
testing a new idea, business model
or product, which may already be in
the market. How you deliver that idea or
product can make the difference between
success and failure. Building an excellent
customer service culture is fundamental to
the success of any business especially when
it is new.
Learn to tap into social media.
Social
media has reduced the cost of reaching
the customer. Before the advent of social
media, the cost of reaching the customer
could be quite steep, but social media has
levelled the playing field for all businesses
whether new or old. So, improve your
chances of success by networking on
Facebook, Instagram, Pinterest, Twitter,
Snapchat, Whatsapp and any social
media platform that puts you or your
product in the face of your customers.
Focus on what you know
how to do best.
Resist the
pressure to diversify your
business into too many
areas which may force
you to move into businesses that
you have no expertise in or eat
up your capital too early. Focus
your seed capital and resources
in the areas where you have your
most strength until you master it
enough to compete with the best
in the field.
