Babatunde Ebidero, CEO of Olatunde Prestige Limited and Bezaleel Manufacturing Company, sheds light on the critical challenges hampering Nigeria's small and medium-scale enterprises (SMEs).
In an exclusive interview with BANKOLE TAIWO, he discusses the economic realities, the effects of the "Japa" syndrome, and the need for innovation and resilience in the manufacturing sector.
Ebidero describes Nigeria's economic climate as more unpredictable and difficult than ever, making it nearly impossible for business operators to plan effectively. According to him, manufacturers face rising fuel costs, fluctuating foreign exchange rates, soaring import tariffs, and an increasing scarcity of skilled labor due to mass migration—commonly known as "Japa syndrome."
"The global economy is facing challenges, but Nigeria's case is worse. Entrepreneurs must be agile because just when you solve one problem, another arises. We started with fuel price hikes, then forex instability, and now we're battling a labor crisis," he noted.
Ebidero emphasized that the mass exodus of skilled professionals is severely impacting the economy, particularly the manufacturing and banking sectors.
"Banks are struggling with long queues due to staff shortages. Initially, doctors and IT experts were leaving, but now, even factory workers are scarce. In the past, we could hire workers from neighboring countries like Benin Republic and Togo, but even they no longer find Nigeria attractive due to our weakened currency," he explained.
Beyond the labor shortage, manufacturers are also contending with skyrocketing raw material costs, forcing some companies to compromise on product quality to stay afloat.
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"If you look closely, you'll notice some bottled water containers are now so thin they can barely stand upright. That's because companies are cutting corners to survive," Ebidero observed.
Despite these challenges, Ebidero insists that quitting is not an option. He urges entrepreneurs to adopt resourcefulness, prudence, and innovation to navigate the economic downturn.
"We need to rethink how we operate. Africa is blessed with natural resources, but true wealth lies in human intelligence. Developed nations thrive because they invest in knowledge and innovation. Nigerian entrepreneurs must tap into this mindset to overcome adversity," he advised.
As Nigeria's manufacturing sector struggles against mounting odds, industry leaders like Ebidero emphasize the need for strategic adaptation and perseverance to ensure long-term survival.
