Boasting a population that exceeds 200 million, with nearly 70% composed of youth, and an unemployment rate eclipsing 50%, Nigeria finds itself at a pivotal crossroads.
At this juncture, numerous stakeholders are united in their call for Nigeria to harness the realm of entrepreneurship as a potent remedy for the blight of joblessness and as a driving force for national growth. As voiced by GLORIA NWAFOR, this narrative resounds with compelling urgency.
In this tale of economic transformation, Small and Medium Enterprises (SMEs) emerge as resilient champions in the fight against poverty, serving as the bedrock upon which the global economy thrives. Their longstanding reputation as the primary wellspring of new employment opportunities and the driving engine behind economic expansion speaks volumes.
Nigeria, often recognized as Africa’s most populous nation and its largest economy, counts over 200 million residents and a Gross Domestic Product (GDP) totaling approximately $477.39 billion in 2022. Yet, this nation grapples with formidable economic challenges, including a meager GDP per capita of $2,184, a high unemployment rate at 33.3%, and one of the world’s highest poverty rates, with about 63% of its citizens considered to be multidimensionally impoverished.
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While many attribute these challenges to ineffective governance, there is a growing consensus that government has inadvertently become a roadblock to progress. Stakeholders contend that the cost of corruption in Nigeria reaches unfathomable proportions. A challenging business environment and government-imposed impediments have forced numerous investors to retract their investments.
Nonetheless, at the 20th annual lecture and the 29th anniversary celebration of the Catholic Brothers United (CBU), convened at St. Agnes Parish, Maryland, Lagos, a prevailing belief among stakeholders emerges: Entrepreneurship stands as the guiding light to confront the mounting unemployment crisis, generate new job opportunities, and steer the economy towards revitalization.
In the spotlight, the theme ‘Entrepreneurship Drive: A Tool for Mitigating Unemployment for National Growth’ takes center stage. The event’s chair, Patrick Akinwuntan, former Managing Director/Chief Executive Officer of EcoBank Nigeria, emphatically underscores the immense potential harbored within Nigeria. With over 40 million registered businesses, the SME sector possesses the antidote to unemployment and poverty, provided it receives robust support and full realization of its potential.
Akinwuntan raises a fundamental question: Why hasn’t this sector reached its zenith, and what measures can be undertaken to unlock its latent potential? He identifies various barriers, encompassing challenges in conducting business, deficiencies in human capital, constrained market access, financial constraints, inflationary pressures, and the volatile valuation of the Naira. These impediments, he contends, stymie the sector’s capacity to flourish.
Akinwuntan underscores the imperative of equipping Nigeria’s ample human resources with the requisite skills to underpin the entrepreneurship drive, stressing the necessity of discipline, technical expertise, business ethics, and unwavering values.
Moreover, Akinwuntan highlights burgeoning sectors like technology, telecommunications, and the creative arts, which have demonstrated growth, providing fertile ground for leveraging opportunities. He underscores the vexing issues of foreign exchange limitations and onerous interest rates as pivotal obstacles confronting local entrepreneurs and SMEs in their pursuit of financial support.
Addressing the specter of inflation and currency volatility, he advocates for the rise of export-oriented entrepreneurs to stabilize the Naira and boost local production, thereby mitigating inflation. Drawing from the global stage, he underscores entrepreneurship’s pivotal role in leading economies such as the United States, China, Japan, Germany, and India, the top five countries by GDP on a worldwide scale.
During a panel session orchestrated by Rev. Fr. George Ehusani, Executive Director of Lux Terra Leadership Foundation, concerns crystallize regarding the government’s role in either facilitating or obstructing the unlocking of Nigerians’ latent potential. Accusations of bureaucratic hurdles, corruption, and inefficiency stifling private initiatives and small and medium-scale businesses ring through the dialogue. These stumbling blocks, often compounded by double or multiple taxation, demand resolute resolution.
Panelists, including Nelson Akerele, MD/CEO of Royal Exchange Prudential Life Assurance Plc; Dr. Omotayo Omotosho, former Director-General of the Nigeria Tourism Development Corporation (NTDC); and Rotimi Oyekanmi, MD/CEO of Renaissance Group West Africa, emphatically emphasize the critical role of instilling ethical values within the younger generation, the establishment of long-term sustainability objectives, and the cultivation of integrity and competence to secure a competitive edge in this era of technological transformation.
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