ON THE QUESTION OF THE EASE OF DOING BUSINESS IN NIGERIA – NIGERIANS ARE THE BIGGEST BUSINESS CHALLENGE OF NIGERIA!

By Zik Gbemre

I know many of us have often asked and pondered on what is the ease of doing business in Nigeria? And many of us, are also aware of the obvious challenges in this regard, and have asked: Can I find it profitable if I should open a business in Nigeria? Can Nigeria easily attract a foreign investor wishing to come to Africa to establish business? If not, why? Aside the apparent gloomy state of critical infrastructure in the country that once triggered relocation of tyre production firms such as Dunlop and Michelin to our West African neighbours, there is also a very critical factor and issue that is responsible for the difficulty and challenging atmosphere in doing business in Nigeria.

Agreed that, on the whole, there are several factors that drive investors out of Nigeria, and also greatly discourage others from doing business in Nigeria. The issues of critical infrastructure such as electricity supply and insecurity are on top of the list, which we have been urging the Nigerian Government and lawmakers at all levels should give utmost attention and make top priorities. And they should assiduously work towards creating a conducive environment within the context of the ease of doing business in Nigeria. But having said that, there is indeed another very vital issue and factor, and that is the Nigerian people themselves, as the major problem and challenge in doing profitable business in Nigeria.

Here is a written testimony of a business-owner, and well-presented write up, as a good example, which glaringly painted the picture of this critical issue and problem in doing business in this country. According to the said post online: “I run a manufacturing business and a trading business. The biggest challenge in my manufacturing business is not power, or infrastructure, THE BIGGEST CHALLENGE IS GETTING HONEST STAFF. EVERYONE WE HIRE APPEARS TO BE ON A MISSION TO STEAL AS MUCH AS POSSIBLE. Inflated invoices, recording less than the actual number of units produced. The worst part of it all is that all the fraud we have uncovered is not done by a single person, it’s usually many staff who collude with each other, from production, to sales, to finance, to even top management.

“There was a year I overhauled management 3 times. But I have found a solution sha, I now use Indian management. and they are so competent, so honest and so straightforward. I thought they were expensive at first with all the visa fees, accommodation, house staff, but now that losses due to staff theft have been reduced to a minimum, and efficiency increased, the Indian management has turned out to be cheaper than the previous Nigerian Management. Now, all sensitive positions involving money go to the Indians. Nigerians are only allowed in non-sensitive positions. I used to criticize companies like Dangote Group that hire so many Indians when there are so many unemployed Nigerians, but now, I understand their decision.

“My biggest challenge in the trading business is the same, getting honest staff. The form of trading occurs in the open market, and involves staff having access to huge sums of money running into a few millions. I know how much I pay to security companies to provide escorts for the staff, not to prevent robbery, but to ensure that the staff go straight to the bank to deposit the money after the day’s sales, and not disappear with my money. This money spent on security companies is even enough to be declared as profit. We have to spend money on CCTV, biometric scanners and other things that would not be needed if staff were not looking for the slightest opportunity to steal. IT GOT SO BAD AT A POINT THAT MY MAIN CRITERIA FOR EMPLOYING NIGERIAN STAFF WAS NO LONGER COMPETENCY BUT HONESTY. AT LEAST, COMPETENCY AND SKILLS CAN BE LEARNT, BUT ONCE YOU ARE DISHONEST, YOU ARE DISHONEST.

“We always complain of the economy and how there are no jobs. I know people abroad who would have loved to set up job creating businesses in Nigeria but they can’t because they can’t get any trustworthy person to run it. I know people in Nigeria with so much money, they want to start factories and other job-creating businesses but they can’t because they are occupied elsewhere and can’t get any trustworthy person to run the business. So, instead of investing in the real sector and creating jobs, they will just buy treasury bills, while the thieves are shouting no jobs.

“Many big businesses would have been established in Nigeria if we could engage in Partnerships, but we can’t because you can’t trust anyone. THIS IS ONE ADVANTAGE THE INDIANS AND LEBANESE HAVE OVER US IN NIGERIA. They can pull resources together and do mega-business, unlike Nigerians, because only one person must do everything since we can’t partner, they end up with small, tiny businesses. Start a poultry today and they will be stealing your eggs. Some will even go ahead to be killing the chickens so that they will be allowed to take them home. Start an entertainment/viewing/game center and they will be pocketing your money. On the days you are around at the business, the money realized will be times ten of the money realized when you are not around. Because they are eating your money.

“Lease out a vehicle to a driver to use and watch as he will finish you. Start a restaurant, the same thing will happen. More than half of the total food ingredients will end up in their personal kitchens. Even ordinary provisions shop, they will find a way to steal. YOU WILL SEE THEM WITH THAT THEIR EVIL, WICKED SAYING “NA WHERE PERSON DEY WORK, NA THERE E DEY CHOP, NA E MAKE DEM DEY CALL AM WORKSHOP”…… JUST IMAGINE, JUSTIFYING THEFT AT WORK. And you will see these people point their crooked fingers at politicians when they are not different. I USUALLY SAY THE REASON MOST NIGERIANS HAVEN NOT STOLEN BILLIONS OF GOVERNMENT MONEY, IS SIMPLY LACK OF OPPORTUNITY. NIGERIANS ARE THE PROBLEM OF NIGERIA.”

As sad and pathetic as this is, that is the unfortunate ‘realities’ in the business arenas and economy of Nigeria today. So, rather than Nigerians being the beneficiaries of top Management and juicy jobs in different sectors of the economy, it is the Indians and the Lebanese that are the ones taking over these jobs, all because of one factor – dishonesty and lack of integrity. Is this supposed to be our story in this country? What happened to us as a people? Why is the number of dishonest Nigerians increasing by the day, and the number of the honest ones are shrinking by the day? How do we hope to grow the economy and develop our nation with this despicable and irritating moral deficiency? We appear to be the most religious people on earth who are also passionate about their tribe and heritage. Yet, at the slightest opportunity given, be it in business or in Government, majority of Nigerians abuse such privilege/opportunities with their dishonest disposition.

The majority of persons believe that the reason for the increase in recent years, of dishonest Nigerians amongst the populace, is because of the unprecedented corrupt practices within the Governments space at all levels. And the fact that these corrupt persons often go unpunished for stealing the money meant to make life a lot better for the Nigerian populace. This is coupled with the fact that these unimaginable evident corrupt practices exhibited by the country’s custodians of our collective wealth, have left millions of Nigerians in abject poverty and deprivation. So, when people are given the slightest opportunity, be it in the same Government or in private sector businesses, they would want to steal; and this is either driven by their desire to meet basic needs in the face of rising inflation and poor standard of living, or they are simply driven by sheer greed, or both. But whichever, or whatever the case may be, this is a huge societal problem that we all must be aware of, and start seeing how it can be addressed by everyone of us. Or else, Nigeria as we know it, will one day be a complete shadow of itself with nothing to write home about. And we all would have to pay for it, one way or the other because it is still our country.

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