Copyright bizwatchnigeria
As Nigeria’s economy faces persistent challenges — from erratic power supply and weak infrastructure to volatile regulatory policies — businesses are learning that survival demands constant adaptation. For many sectors, what worked yesterday may not guarantee tomorrow’s success. Across industries such as logistics, manufacturing, and retail, companies are grappling with high energy costs, transportation hurdles, and unpredictable consumer behavior. To stay afloat, Nigerian entrepreneurs are reinventing their business models, building resilience through innovation, and diversifying income streams. Power and Infrastructure Challenges The unstable power supply remains one of the biggest threats to business continuity. Companies spend heavily on generators and alternative energy, driving up production costs and reducing profit margins. Prolonged outages disrupt manufacturing schedules and erode customer trust. Infrastructure deficiencies — from poor roads to congested ports — further complicate logistics. Export-oriented firms struggle to meet delivery timelines, while domestic operations face delays that drive inefficiencies and lost revenue. Regulatory Volatility Policy shifts, tax revisions, and changing compliance requirements keep businesses on their toes. What was once a profitable strategy can become obsolete overnight. Firms must strengthen their legal and compliance units to navigate these changes quickly and effectively. Inconsistent regulation also affects investor confidence, making it critical for businesses to monitor government announcements closely and adjust operations accordingly. Understanding Your Business and Its Purpose At a recent Grow with Renny conference, FezDelivery CEO Seun Alley urged entrepreneurs to truly understand their business mission before diving in. She cautioned against entering industries simply because they appear lucrative. Using the logistics industry as an example, Alley noted that while many rush in seeking profit, few focus on solving genuine problems. This mindset, she explained, often leads to frustration and premature closure. She advised business owners to assess their market, identify real needs, and give their ventures time to grow — at least three to five years before expecting significant profit. The Role of Extra Income and Patience Abayomi Molehin, Group Head of Strategy and Business Transformation at Continental Reinsurance, reinforced Alley’s point, stressing that sustainability takes time. He shared how his wife’s business took years before turning a profit, made possible only because she maintained another source of income during the early stages. Molehin added that entrepreneurs must be realistic about timelines and use personal or external income to sustain their business until it stabilizes. Trust and customer loyalty, he said, are built gradually, not overnight. Leveraging Opportunities and Awareness Many small business owners remain unaware of available financial programs. Molehin cited examples like the Bank of Industry’s single-digit loan for women, noting that awareness is often low despite such opportunities. He emphasized the importance of staying informed about government and institutional funding to ease financial strain during uncertain times. Diversify and Innovate Experts recommend diversification across sectors to reduce dependency on one market. Expanding into new regions or industries cushions businesses against economic downturns. Investing in innovation and R&D ensures that products stay relevant and competitive. Customization is another key differentiator — tailoring solutions to client needs enhances loyalty and creates sustainable value. Customer Relationships and Quality Standards During difficult periods, businesses that prioritize excellent customer service tend to outperform competitors. Providing consistent value, transparent communication, and technical support builds trust that lasts beyond a single transaction. Maintaining high-quality control and compliance with regulatory standards is equally crucial, particularly in sectors like pharmaceuticals or manufacturing, where lapses can result in heavy losses. Strategic Alliances and Flexibility Partnerships with industry players, research institutions, or technology providers can open new markets and reduce risks. Flexibility in business models — such as adopting subscription plans or leasing options — also attracts diverse clients. Agility in supply chain management is vital. Companies should diversify suppliers and enhance logistics capabilities to reduce exposure to geopolitical and financial shocks. Sustainability and Financial Discipline Sustainability is no longer a buzzword — it’s a business necessity. Companies that implement eco-friendly practices not only attract conscious consumers but also align with evolving regulations. Financial discipline is equally essential. Businesses must manage cash flow prudently, minimize waste, and optimize operations without compromising quality. Lean models and efficient processes are now the backbone of resilience. Final Outlook In an era defined by uncertainty, adaptability is the strongest form of security. Nigerian businesses that stay flexible, innovative, and customer-focused are more likely to thrive. While challenges in power, infrastructure, and policy remain, forward-thinking entrepreneurs who plan strategically, diversify operations, and remain alert to opportunities will continue to grow — even in turbulent times.
