‘How insecurity re-draws Nigeria’s business map’

Uzo Nduka, chief executive, Domino Information Company Limited (DICL), speaks on how insecurity has re-drawn the Nigerian business map, particularly the Small and Medium Enterprises (SMEs), in this interview with OLUYINKA ALAWODE.

Investors

There are local and international investors. No matter how small or big, they all want returns on their investments through the creation/delivery of viable goods and services that fill gaps in the marketplace and also create jobs.

The total investment from local investors to more than 15 million Micro, Small and Medium Enterprises (MSMEs) is actually much more than the investment that comes from outside the country. A major issue is that most of these local investments in business are not captured in our statistics.

Start-ups

To give an example, a young Nigerian that graduates from a higher institution or has acquired proficient vocational skills, but still cannot get a job, would most likely turn to (family) relatives for money to start a business. It may just be a corner shop, but, this and other businesses, a little below or above in scale, are the ones that provide jobs for the most number of Nigerians.

Job creation

These are the businesses that pay the N10,000 to N100,000 per month as salaries and help many Nigerians and their families to keep hunger away, in terms of food-on-the-table and a roof-over-their-heads.

Impact

By the time we aggregate the impact of all these businesses, it creates more impact on our socio-economy than what foreign investors can ever do. However, these are the businesses that are worst hit by the insecurity situation in the country today.

Insecurity

Nonetheless, local or foreign investment, insecurity has a way of re-drawing the business map of any country. For instance, there was a time some companies began to move out of the Niger Delta region, particularly, Warri.

At that time, when investors were told of a business opportunity in Warri, it did not matter to them how profitable or attractive that opportunity was, what mattered was that the city was unsafe for business. They therefore were not willing to invest their scarce resources there. This was because in those days, Warri was the hotbed of violence where a business, small or big could not thrive.

It did not take a lot of time for companies that had the financial muscle to relocate away from the region and many of those that could not, actually went under.

Thankfully, Warri is being restored as a good business destination, largely due to concerted efforts from government and other key stakeholders.

Still, for a period, the business map of Nigeria was re-drawn to exclude that part of the country. This is my fear with the situation we have today.

Telecoms

The business map of Nigeria is being re-drawn yet again to exclude some parts of Nigeria, especially the North East, because of the insecurity situation. There are examples such as telecoms operators that have decided not to operate or provide service in parts of the North East because each time they put up a mast, it is immediately vandalised by insurgents or criminals. No profitable business can keep up with this situation every day, week or month. It costs millions to do so. Not to even mention the risks to personnel that have to work in such areas.

This is how the business map of Nigeria, for the telecoms sector, is being redrawn because of insecurity. The same logic applies to every other sector of the economy.

Trading

To give another stark example, traders from different parts of the country, especially the East have always travelled in lorries to Adamawa, Borno and other Northern states to buy farm produce which they then cargo back to every other part of the nation to sell.

This business is worth over N30 billion annually (my personal modest estimation), but many of the traders can no longer continue with their trades because of insecurity.

Again, the business map of Nigeria (farm produce commodities trading) has been re-drawn to exclude certain parts of the country.

Effect

This means that farmers in the affected parts of our dear nation, can no longer find profitable markets for their produce. By extension, this affects the entire farming community and more importantly families. Sadly, some children may not go to school for a period if care is not taken.

FDI

Most commentators just confine themselves to issues at the macro level. They talk only about investors’ confidence and the inflow of Foreign Direct Investment (FDI) and outflow of exported goods and services, but forget that all these trickle down to affect children, pregnant mothers, and fathers who have children to enrol in school. So, even if a troop of soldiers is sent to safeguard every school, if a father cannot pay school fees, buy uniforms, and buy the books that the children need, those children are still not going to be at school when the bell rings in the morning.

Micro-economy

So, let us bring down issues to the level of individuals; to the level of a Nigerian family. As citizens of this great nation, we should focus on issues that will deliver to us the results we need.

Results

We need to ask ourselves certain questions before taking any action. “What results do we need and what is the right thing to do to get those results?”

We must always remember that businesses focus on results that impact on lives directly, and we must do everything possible to protect businesses, especially at the micro, small and medium levels. After all, more than 70 percent of our population (our brothers and sisters) depend on these enterprises for daily bread.