| Africa's second largest economy is a bundle of | | | | cultivating a wholesome entrepreneurial spirit, policy |
| extreme contradictions; with billions of dollars in annual | | | | changes can often be superficial unless followed |
| oil revenue on one end and pervasive poverty for | | | | through with flexible implementation and constant |
| most of its 148 million people on the other. Relative | | | | monitoring. An effective revamp of Nigerian financial |
| political stability since 1999 has delivered some reform | | | | policy initiatives must focus on three key objectives: |
| and regulatory initiatives to correct huge and | | | | * Enhanced regulatory mechanisms to oversee |
| long-standing macroeconomic disparities, yet the | | | | micro-financing operations. |
| country remains overwhelmed by persistently dismal | | | | * Increased capacity and motivation for financial aid |
| indicators and human development indices. Nigeria's | | | | to small businesses. |
| current per capita GDP of $1,418 ranks it below much | | | | * Improved coordination between various |
| smaller African economies like Sudan, Congo and | | | | government, private sector and donor agencies. |
| Swaziland. The latest UNDP poverty survey of 108 | | | | Engineering a country-wide entrepreneurial spirit also |
| developing nations placed the country at the 80th | | | | calls for simultaneous and massive social restructuring, |
| position, below Rwanda and Malawi. Achieving the UN | | | | in a way that correctly reflects Nigeria's historical |
| Millennium Development Goals and its own, and more | | | | imperatives and the poverty that blights both its |
| ambitious 2020 target require a paradigm shift in | | | | urban and rural landscapes. Even though the country |
| mindset and priorities. It also requires the successful | | | | earned an estimated $600 billion in oil revenue in the |
| engendering of a broad, pan-Nigerian entrepreneurial | | | | last half century, it's GDP per capita of $1,418 ranks |
| spirit! | | | | among the lowest in the world3. Added to that are |
| A slew of relevant policy redirections have already | | | | deep-set symptoms of rural illiteracy and gender |
| been initiated in this regard: The government has | | | | inequality, both of which are proving acutely |
| deregulated oil prices, disinvested public sector | | | | detrimental to sustainable enterprise development. |
| undertakings, created special economic zones and | | | | The Nigerian Economic Policy for 1999-2003 |
| passed assorted legislation to encourage enterprise | | | | envisaged far reaching promises on universal basic |
| development. While some of these measures are | | | | education, adult literacy and a slew of related |
| starting to show positive results, many have been | | | | programs aimed at leap-frogging in order to short |
| largely ineffective while yet others have completely | | | | circuit the longer span of development." Part of the |
| collapsed. For instance, a massive privatisation drive | | | | reason these and other objectives have since been |
| launched after 1999 managed to rake up private | | | | frustrated is the huge difference between policy and |
| sector investment. However, Abuja's simultaneous | | | | execution, a problem of developing nations in general. |
| inclination for micro-enterprises, instead of small-scale | | | | In Nigeria, it is a key concern area because of its |
| ventures, did little to curb unemployment. The failure | | | | close relation to another national catastrophe: |
| or even inadequate success of these measures is | | | | rampant bureaucratic corruption. The state of |
| attributed primarily to disregard or ignorance of | | | | Nigerian corruption is so insidious that it comes with |
| ground realities, and lack of a coherent, consistent, | | | | its own name - prebendalism, essentially defined as |
| macro-level vision. | | | | mass misappropriation of public assets by |
| Nigeria's unique set of problems calls for broad-based | | | | bureaucratic and political agents4. International aid |
| policy intervention from the bottom up, and any | | | | agencies owe much of the failure of Nigeria's |
| individual law or policy that is not part of a unified | | | | economic and poverty alleviation initiatives to an |
| effort is unlikely to make much difference. The | | | | intractable bureaucracy that has steadily resisted |
| 'bottom up' analogy is pertinent, as one of the first | | | | efficient and fair practices. |
| things Nigeria ought to be doing is improving the | | | | Activating productive entrepreneurial practices in |
| condition of its roads. | | | | Nigeria will require cumulative development and |
| The business environment in the whole of Africa is | | | | focussed efforts on these vital objectives: |
| crippled with massive infrastructure shortfalls that | | | | * Creating an aggregate socio-economic environment |
| result in the continent's high enterprise mortality rate1. | | | | that is conducive to enterprise development in the |
| Significantly, the rate of failure affects older and new | | | | fullest sense, through fiscal, monetary and industrial |
| entrants alike. A leading cause is almost always | | | | policy changes. |
| infrastructure deficits that critically hamper genuine | | | | * Removing conditions that create high business |
| economic growth and productivity. | | | | costs by addressing systemic deficiencies in terms of |
| Nigeria likewise suffers from endemic infrastructural | | | | infrastructure, policy and implementation. |
| woes with regards to roads, communication and | | | | * Attracting local private sector finance and equity |
| especially power (small and large businesses alike | | | | with the specific objective of creating a mass base |
| across the country rely heavily, and at times | | | | of viable small businesses. |
| exclusively, on backup electricity). There have been | | | | * Revamping the education sector to provide |
| no worthwhile attempts so far to radically upgrade | | | | vocational, administrative and skill development |
| the power sector, or attract private investment. | | | | training to rural and urban youths. |
| Another menacing challenge, compounded by the | | | | * Maintaining political stability and building social |
| recent proliferation of militancy in the Niger Delta | | | | consensus to ensure broad-based success of |
| region, is security. Continued use of outdated | | | | macroeconomic policies. |
| technology and lack of trained manpower are a few | | | | To summarize in two words, Nigeria's future |
| more of the many difficult bottlenecks facing Nigerian | | | | economic success depends on creativity and |
| entrepreneurship. | | | | perseverance. The creative aspect is necessary to |
| At the administrative level, Nigeria needs radical | | | | design locally applicable solutions for accelerated |
| changes in fiscal, monetary and industrial policies to | | | | economic growth. In view of its historical and current |
| both promote new enterprises and aid existing ones. | | | | economic realities, these solutions will need continuous |
| The bulk of the problem is the impaired access for | | | | and flexible implementation with built-in course |
| small and medium enterprises to capital markets. To | | | | correction capabilities. In short, intelligent |
| improve this situation, lawmakers have made it | | | | perseverance! It is certainly not going to be an easy |
| mandatory for commercial banks operating in Nigeria | | | | job bringing about and sustaining an entrepreneurial |
| to keep aside 10% of pre-tax profits for equity | | | | spirit in Nigerian affairs. But unless it manages to do |
| investment in small businesses. While it was a | | | | just that, the chances of this remarkably talented |
| reasonably sensible move, it failed to meet avowed | | | | country shaking off its Third World attributes and |
| targets because the rate of actual disbursement was | | | | transforming into a global economic powerhouse are |
| significantly lower than expected2. In the context of | | | | slim. |