By Henrietta Onwuegbuzie
PERHAPS the COVID-19 crisis will also prompt an end to the ridiculous importation of basic items such as pencils, biros, matches, razors and even toilet paper and cubed sugar, which could easily be produced in Nigeria but have been imported for decades. As travel restrictions are likely to remain for a while, African governments must look inwards and be able to help themselves. Nigeria, for instance, could start by cutting down unnecessary expenses and creatively thinking of new ways to generate national income. For example, there is a huge diaspora market longing for genuine African foodstuff, and Nigeria needs to tap more deeply into that goldmine, which with proper processing and packaging, can provide good business for smart entrepreneurs. It also creates a value chain of jobs for the suppliers (farmers) and those involved in processing, packaging and warehousing.
Regarding oil, which has been both a blessing and a curse to Nigeria, the construction of a private local refinery and petrochemical plant, when completed, should end the significant leakage of national funds deployed to fuel subsidy and the importation of refined oil. On the other hand, it will bring in a huge chunk of the much-needed foreign exchange, as Nigeria will be a major exporter of oil to the rest of Africa. Another major source of badly needed national revenue is the large amount of funds looted by past leaders that remain in foreign accounts, in spite of what has been recovered to date. Nigeria needs to push for its return and ensure it is effectively deployed to lift the country out of recession.
Finally, there is also a need to trim down the cost of governance tremendously. The country cannot continue to allocate more than 70% of its budget to accommodate the huge allowances and the extravagant expenses of the Legislature and Presidency. In the face of the current economic crunch, continuing with business as usual will mean risking a high level of social upheaval that can wreck the country, already troubled by unbridled terrorist attacks. Nigeria must curtail profligate expenses and focus on resolving crucial social and security problems, heightened by the pandemic.
In order to get us through the several layers of crises we currently face, the best brains must be encouraged to come to the fore. Historically divisive tribal and religious sentiments must be set aside to give way to professionalism and competence, so as to successfully emerge stronger and better in the new post-COVID world order
The need to heighten sanitation and hygiene will also give rise to jobs for fumigators and those producing disinfectants and other cleaning materials. In addition, the agricultural sector has to keep going if famine is to be prevented, especially now that food imports will diminish due to the slowdown in global economic activities and travel. This also presents business opportunities for farming, processing, warehousing and packaging. The farmers and all those who need to continue working in essential services will need to have their immune systems boosted, while maintaining social distancing as they work.
Immune boosters can be provided through pharmaceuticals like vitamin C and zinc tablets, or through natural herb combinations such as bitter kola, bitter leaf, ginger, turmeric, garlic and lemon. Others include cloves, garlic, negro pepper (uda), Benin pepper (uziza) and neem. This provides another opportunity for a business to package and distribute immune boosters in a powdered form, such that those on the go like logistics drivers can conveniently utilise these packages. Considering that Africa has quite a number of herbs that boost immunity and can mitigate the severity of COVID-19, a new aspect of agribusiness will be herbal gardens that will grow these immune-boosting herbs in large quantities for both local consumption and export.
We must begin to emphasise genuine African solutions to problems. For instance, more than a few people have mentioned how they have recovered from the COVID-19 infection by drinking and steaming themselves with hot potions that combine local African herbs. Time has also come for African governments to encourage their scientists to mainstream their research findings especially in the areas of health and medicine.
This period calls for flexibility and a stronger emphasis on solving new problems that have emerged. The fall in oil prices has led to a significant devaluation of the naira from N360/$ to well over N400. To help people sustain the value of their savings, real estate players could begin to market discounted properties, (as the global recession is likely to bring down the price of properties), as a means to preserve depreciating savings in local currency. People can choose to invest in discounted properties, which they can hold until they appreciate. Consequently, selling discounted properties becomes a safe way to maintain the value of one’s savings.
Besides the new business opportunities highlighted above, a big lesson the MSMEs must learn from this crisis is the importance of saving for the rainy day while business is good. Rather than spend or distribute all profit, companies need to put aside a crisis allowance either monthly or yearly, such that ideally, a company should aim to be able to weather a bad patch for at least three-six months.
Both businesses and national governments will also need to embark on improved efficiency and cost-cutting. African governments cannot expect donations from traditional creditors who are themselves struggling to cope with the pandemic and have lost trillions of dollars. Fortunately, the recently ratified African Continental Free Trade Agreement could come in handy as each country can supply what it does best to others. Perhaps, the COVID-19 crisis will also prompt an end to the ridiculous importation of basic items such as pencils, biros, matches, razors and even toilet paper and cubed sugar, which could easily be produced in Nigeria, but have been imported for decades! As travel restrictions are likely to remain for a while, African governments must look inwards and be able to help themselves.
Nigeria for instance, could start by cutting down unnecessary expenses and creatively thinking of new ways to generate national income. For example, there is a huge Diaspora market longing for genuine African foodstuff, and Nigeria needs to tap more deeply into that goldmine, which with proper processing and packaging, can provide good business for smart entrepreneurs. It also creates a value chain of jobs for the suppliers (farmers), those involved in processing, packaging and warehousing.
Regarding oil, which has been both a blessing and a curse to Nigeria, fortunately, the Dangote Refinery and petrochemical plant, when completed hopefully soon), should end the significant leakage of national funds deployed to fuel subsidy and the importation of refined oil. On the other hand, it will bring in a huge chunk of the much-needed foreign exchange, as Nigeria will be a major exporter of oil to the rest of the African continent. Another major source of badly needed national revenue is the Abacha loot, which still has large amounts outside Nigeria, in spite of what has been recovered to date. Nigeria needs to push for its return and ensure it is effectively deployed to lift the country out of recession.
Finally, there is also a need to trim down the cost of governance tremendously. The country cannot continue to allocate more than 70% of its budget to accommodate the huge allowances and the extravagant expenses of the Legislature and Presidency. In the face of the current economic crunch, continuing with business as usual will mean risking a high level of social upheaval that can wreck the country, already troubled by unbridled terrorist attacks. Nigeria must curtail profligate expenses and focus on resolving crucial social and security problems, heightened by the pandemic.
In order to get us through the several layers of crises we currently face, the best brains must be encouraged to come to the fore. Historically divisive tribal and religious sentiments must be set aside to give way to professionalism and competence, so as to successfully emerge stronger and better in the new post-COVID world order.
Dr Onwuegbuzie, is Director, Owner-Manager Programme, Lagos Business School and Senior Lecturer, Entrepreneurship honwuegbuzie@lbs.edu.ng
(This article was first published on LBS Insight on the LBS website).