4 October 2016
At this point it is safe to say it is no longer news that Nigeria’s economy is in a recession. It’s been common knowledge. The reality is biting real hard.
Inflation rate has hit an all-time high rate of 20 per cent while the exchange rate continues to soar with no imminent drop in sight.
Worse still, thousands of Nigerians are losing their jobs to the recession while the few who have jobs are holding on to them with their all, even to the point of taking pay cuts.
What this reality means for ordinary Nigerians is that, the purchasing power of the Naira is feeble while cost of living is rising daily, largely because of Nigeria’s over-reliance on importation.
The reality of the recession for business owners and entrepreneurs, however, is that they are forced to re-strategise, and cut back on a lot of things that they usually do due to the substantial cut in income. Some unlucky few businesses are already out of business.
The lucky few that are still surviving are surviving for some reasons. In this piece we’ve put together some survival tips for Nigerians – individuals and businesses – in times like this.
Below are what individuals, entrepreneurs and even cooperate organisations can do to survive:
As an entrepreneur or corporate organisation, this is not the best of times to invest your capital. There is little or no growth rate, people who have money have put a lock on it in the banks, no one wants to risk any loss hence, it is important to suspend any investment till later when things start picking up – this could be the second quarter of next year if what former CBN Governor, Charles Soludo, says is anything to go by. This is a time to make sure your businesses stay afloat, expansion can wait.
Cut off unnecessary cost
Even the government is advised to curtail all unnecessary spending. Individuals and corporate entities can also borrow a leaf. This is not the time to spend just because you USED to spend but if you must spend at all, spend because you MUST spend. Liabilities and expenditures are places to look at when trying to cut spending.
Retain customer base
This is a time business owners must do everything possible to ensure clients return to patronise you regardless of the fact that circumstances are difficult. The customers are the reason you have a business in the first instance and they are also the reason you will stay in business if you will. Even if you must unavoidably increase cost of service, you must do everything humanly possible to retain your customer base.
Just like the economic team of the Federal Government has assured Nigerians, recession cannot linger forever, but lessons must be learnt so that it doesn’t recur anytime soon.
It is important that Nigerians start looking inward in order to encourage local production and manufacturing, thereby reducing on imported goods and services.
To grow the Naira, you must patronise Nigerian made products.
Author: Dotun Obatuyi
My name is Dotun Obatuyi (Dotunoba), I hail from Osun state, a public health scientist (monitoring and evaluation specialist), my keen interests are researching, critiquing and writing feature articles on health, science and technology as well as issues around the globe.