The Managing Director, Sujimoto Group, Dr. Sijibomi Ogundele has told President Bola Tinubu that the biggest challenge facing entrepreneurs in Nigeria is access to capital.
He stated this in an open letter titled ‘Government has no obligation to support businesses’, written to President Bola Ahmed and issued to newsmen on Saturday.
Sijibomi stated that funding remains the engine that propels innovation, generates new businesses, and brings fresh products and services to the market.
He noted that as such, government has to encourage financial institutions to create an intellectual and creative collateral system for businesses with no alternative for physical collateral such as lands or properties.
The Czar of Luxury Real Estate Development said the current political dispensation has to reduce the bureaucratic red tape by simplifying and streamlining the process of starting and running a business to further promote the entrepreneurship culture, especially among youths.
He cited an instance of the World Bank’s Ease of Doing Business Index ranking countries like Singapore and the United Arab Emirates at the top of the list due to their business-friendly policies, while Nigeria is not even among the first one hundred.
Ogundele stated that not all governments have the obligation to support businesses, but governments have a moral duty and obligation to partner with businesses because a thriving business is a thriving nation.
The Real Estate Mogul explained that not all governments have the obligation to support businesses, but governments have a moral duty and obligation to partner with businesses because a thriving business is a thriving nation.
According to him, “Great nations like Egypt and Singapore are intentionally encouraging localised production and promoting local enterprises; Hence, it is high time for the Nigerian government to create stimulus packages for businesses and local entrepreneurs to help them achieve their goals, promote job opportunities, and drastically improve foreign exchange.”
He stated that this should not come in the form of grants but in affordable and accessible loan packages for specified durations.
Sijibomi stated that “If Elon Musk was in Lagos, he probably would have ended up in computer village selling mobile devices, with his innovative ideas frustrated due to lack of funding, adding that Steve Jobs also may have been a genius entrepreneur—he certainly had an eye for design—but his most successful product would not exist if it weren’t for the billions of dollars that the US government spends every year on research and development.”
He lamented that as of today, a 50-KG bag of rice costs N42,000 from the mills and about N52,000 from supermarkets, whereas the same bag of rice is worth N22,000 at Seme Border, Republic of Benin, noting that the secret to reducing the price is by growing the paddy locally and setting up rice mills in individual states, drastically reducing the cost of rice and food.
The MD said this is what Suji Farms Estate aims to achieve in the next 24 months, where Nigerians will be able to grow the country’s paddy, mill the paddy, and distribute them directly to supermarkets across the nation, drastically reducing the cost of a bag from N52,000 to N35,000, adding that this will further improve the nation’s human capital development and deliberately improve the nation’s food security.
He, however, states that the company is only one company, and believes the government can partner with other innovative agro-entrepreneurs, providing them with accessible, affordable, and non-stressful capital.
“7 Pillars to tackle economic deprivation in Nigeria: Funding Opportunities: One of the biggest challenges facing entrepreneurs is access to capital. Funding remains the engine that propels innovation, generates new businesses, and brings fresh products and services to the market. As such, government has to encourage financial institutions to create an intellectual and creative collateral system for businesses with no alternative for physical collateral such as lands or properties.
“Reducing the regulatory burden on entrepreneurs: To further promote the entrepreneurship culture, especially among youths, the current political dispensation has to reduce the bureaucratic red tape by simplifying and streamlining the process of starting and running a business. For example, the World Bank’s Ease of Doing Business Index ranks countries like Singapore and the United Arab Emirates at the top of the list due to their business-friendly policies, while Nigeria is not even among the first one hundred.
“Government supports innovative enterprise: Yes, not all governments have the obligation to support businesses, but governments have a moral duty and obligation to partner with businesses because a thriving business is a thriving nation.
“Great nations like Egypt and Singapore are intentionally encouraging localised production and promoting local enterprises. It is high time for the Nigerian government to create stimulus packages for businesses and local entrepreneurs to help them achieve their goals, promote job opportunities, and drastically improve foreign exchange. This should not come in the form of grants but in affordable and accessible loan packages for specified durations.
“If Elon Musk was in Lagos, he probably would have ended up in a computer village selling mobile devices, with his innovative ideas frustrated due to lack of funding.
“Steve Jobs also may have been a genius entrepreneur—he certainly had an eye for design—but his most successful product would not exist if it weren’t for the billions of dollars that the US government spends every year on research and development.
“Just like SpaceX, although it is not yet in the full stage of generating revenue, the American government has also maintained a great share in funding the technological corporation because of its economic relevance and research impact on global society.
“Nigeria can’t afford to think small. As the giant of Africa and the biggest nation in Africa with the biggest problem.
“The government needs to go out there and identify 10,000–50,000 outstanding entrepreneurs from all 36 states who have the capacity and reputation to do things differently, empower them beyond physical collateral, invest in their intellectual property, and create an enabling environment where competence and integrity prevail over connections and deceit.
“As of today, a 50-kg bag of rice costs N42,000 from the mills and about N52,000 from supermarkets, whereas the same bag of rice is worth N22,000 at Seme Border, Republic of Benin.
“The secret to reducing the price is by growing the paddy locally and setting up rice mills in individual states, drastically reducing the cost of rice and food.
“This is what Suji Farms Estate aims to achieve in the next 24 months, where we will be able to grow our paddy, mill the paddy, and distribute them directly to supermarkets across the nation, drastically reducing the cost of a bag from N52,000 to N35,000.
“This will further improve our nation’s human capital development and deliberately improve the nation’s food security, but we are only one company, and we believe the government can partner with other innovative agro-entrepreneurs, providing them with accessible, affordable, and non-stressful capital,” he said.
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