Growing Entrepreneurial Spirit in Nigeria

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Africa’s second largest economic system is a bundle of utmost contradictions; with billions of dollars in annual oil revenue on one finish and pervasive poverty for most of its 148 million folks on the other. Relative political stability since 1999 has delivered some reform and regulatory initiatives to correct huge and lengthy-standing macroeconomic disparities, yet the nation remains overwhelmed by persistently dismal indicators and human improvement indices. Nigeria’s current per capita GDP of $1,418 ranks it under much smaller African economies like Sudan, Congo and Swaziland. The latest UNDP poverty survey of 108 growing nations placed the country at the eightieth place, below Rwanda and Malawi. Achieving the UN Millennium Improvement Objectives and its personal, and more ambitious 2020 target require a paradigm shift in mindset and priorities. It also requires the successful engendering of a broad, pan-read nigerian newspapers online entrepreneurial spirit!

A slew of relevant policy redirections have already been initiated in this regard: The federal government has deregulated oil costs, disinvested public sector undertakings, created special economic zones and passed assorted laws to encourage enterprise development. While a few of these measures are beginning to show optimistic outcomes, many have been largely ineffective while but others have fully collapsed. As an illustration, a massive privatisation drive launched after 1999 managed to rake up private sector investment. Nonetheless, Abuja’s simultaneous inclination for micro-enterprises, instead of small-scale ventures, did little to curb unemployment. The failure and even inadequate success of those measures is attributed primarily to disregard or ignorance of ground realities, and lack of a coherent, constant, macro-degree vision.

Nigeria’s unique set of problems calls for broad-based policy intervention from the bottom up, and any individual legislation or policy that isn’t a part of a unified effort is unlikely to make much difference. The ‘bottom up’ analogy is pertinent, as one of the first things Nigeria should be doing is improving the condition of its roads.

The business atmosphere in the whole of Africa is crippled with massive infrastructure shortfalls that result within the continent’s high enterprise mortality rate1. Considerably, the rate of failure affects older and new entrants alike. A leading cause is almost always infrastructure deficits that critically hamper real financial development and productivity.

Nigeria likewise suffers from endemic infrastructural woes close to roads, communication and especially power (small and large businesses alike across the nation rely heavily, and at instances exclusively, on backup electricity). There have been no worthwhile attempts up to now to radically upgrade the facility sector, or entice private investment. Another menacing challenge, compounded by the latest proliferation of militancy within the Niger Delta area, is security. Continued use of outdated technology and lack of trained manpower are just a few more of the numerous difficult bottlenecks facing Nigerian entrepreneurship.

On the administrative stage, Nigeria wants radical adjustments in fiscal, monetary and industrial policies to each promote new enterprises and assist current ones. The bulk of the issue is the impaired access for small and medium enterprises to capital markets. To improve this state of affairs, lawmakers have made it obligatory for industrial banks operating in Nigeria to keep aside 10% of pre-tax earnings for equity investment in small businesses. While it was a reasonably smart move, it failed to satisfy avowed targets because the rate of precise disbursement was significantly lower than expected2. In the context of cultivating a healthful entrepreneurial spirit, policy changes can often be superficial unless followed through with versatile implementation and fixed monitoring. An effective revamp of Nigerian financial policy initiatives must focus on three key goals