Lilian Chibuzo, a graduate of Biochemistry from the University of Nigeria, Nsukka, is the Chief Executive officer of Munchions Ventures, she is an entrepreneur who specialised in confectioneries. In this interview with NIYI OYEDEJI, she speaks on her business , passion and expansion plan.
What’s your business background?
I am an entrepreneur with a passion for healthy living. This interest influenced my start up, Munchions Venture, which is specialized in the production of healthy and nutritious snacks. Prior to my entrepreneurial journey, I studied Biochemistry at the University of Nigeria, Nsukka, with a scholarship from Nigeria Liquefied Natural Gas (NLNG). I graduated with a second class upper BSc degree in July, 2016. Few months before my National Youth Service Corp (NYSC), I studied German language up to the B1 level at the Goethe Institute, Lagos. I also had a month long informal training at a small bakery in Iju, Lagos State. Most of my learnings however have been through the internet, books and consistent practice. Asides baking, I love art, good music and nature.
At Munchions, we make wholesome and delicious snacks for the delightful consumption of our customers. Our first product is a coconut snack. It is baked as opposed to fried, making it much healthier, sweetened naturally with Dates and contains no chemical additives or preservatives. The idea behind Munchions is simply healthy, friendly snacking. I’m looking forward to a time when we will have more snacks in the Nigerian market with only naturally and indigenously source ingredients, a time when we will have many more quality snacks made in Nigeria by Nigerians.
Banks allocate N15.13trn credit to private sector ― NBS
What inspired your startup?
In my third year in UNN, I got to know someone who made and sold chin-chin. I’m not certain what prompted the thought, but I remember being curious about how coconut would taste in a dough-mix. At that time, I hadn’t tasted anything like it. So I tried it, and voila, here I am today. However, what inspired the Munchions coconut snack recipe was the need to have a snack with all natural ingredients. After I researched and presented a seminar on the harmful effects of food additives and preservatives in my final year in UNN, I’ve found it necessary to read through the list of ingredients of most food and drink items I consume. In the course of doing that, I realised that all, except a few contained chemical preservatives and a lot of sugar. The truth is that they are not necessarily harmful except when consumed occasionally over a long period of time. However, if I were to choose between a snack that is beneficial to my health and one that’s not in the long term, I would choose the former.
What was your startup capital?
My start-up capital was a zero-per cent interest loan I obtained from the Bank of Industry (BOI), as a beneficiary of the Graduate Entrepreneurship Fund 3 (GEF 3) in March, 2018. The GEF is an entrepreneurial fund scheme put together by the Bank of Industry in collaboration with the NYSC Directorate with the aim of curbing youth unemployment thereby facilitating job creation and business growth. Since the inception of the program in 2015, each year, the entrepreneurs selected go through a four-day entrepreneurship training program organised by BOI in collaboration with Fate Foundation and Leap Africa, after which the entrepreneurs, who are still interested in obtaining the zero per cent interest loan, are mandated to submit a list of required documents (including a well detailed business plan), within a month after the training program. The collateral was just our NYSC certificates.
For me, after many months of follow up, learning, developing recipes, procuring a production space and making adjustments to my application, the loan was disbursed in May, 2019 and I kicked-off two months later.
What is the number of your current employees?
I currently have one part time employee who assists with production. However, I occasionally outsource some key areas of the business like the graphic design and printing of labels. With an anticipated growth of Munchions, I will create at least 2-5 more direct and indirect jobs by the end of our first year.
When was your business established?
My business name was registered with the Corporate Affairs Commission on the 18th of May, 2018 and it began operations on the 1st of August, 2019. The growth of the business has been slow but consistent and I am certain its success will exceed my expectations.
What are your expansion plans?
Before the end of our first year, we will have at least two more healthy snacks on our list of products. Our goal is to become one of the leading choice snack companies for health and quality conscious individuals. After we have successfully penetrated the Lagos market, we will work to take Munchions to other states in the country. In the long term, five to10 years from now, we will have modern farms where we will organically grow and process some of our raw materials. I do not expect that the journey there to be rosy but I will strategically position myself and the company to meet the right people and opportunities that will foster our growth.
What are the major challenges you have faced since you started your business?
My major challenge since I started has been unstable supply of electricity. In a bid to manage production costs, I have tried to tailor my work hours in line with the pattern of electricity supply. However, it has been very irregular; little wonder Nigeria is not a first choice destination for manufacturers. Asides electricity, I’ve had the challenge of scaling up my daily output as a result of disappointments in the course of obtaining some necessary equipment. Thirdly, penetrating the market has been very tasking but we are taking it one market at a time. And lastly, I’ve had to grapple with fluctuating prices of my raw materials.
How do you think the government can address these challenges?
I think it is high time our government looked beyond immediate gratification and embrace continuity by focusing more on setting policies and putting structures in place that will benefit the economy in the long term. Electricity is paramount to the operations of most businesses. It is therefore important for the government to focus on making electricity stable. Constant electricity is a basic necessity, not luxury. The government can also review and tailor our current monetary and fiscal policies to favour economic stability and hence stabilise prices of items.
How many awards and grants have you won so far?
As a beneficiary of the graduate entrepreneurship fund, I received a certificate of participation in the entrepreneurship training program from Fate Foundation. Also, this month, I was a beneficiary of the Mission One Million Entrepreneurs (M1ME) executive master class program organised by Africa’s Young Entrepreneurs (AYE).
What advice do you have for young people interested in what you do?
First, surround yourself with people who truly care about you and your success. My amazing immediate and extended family, friends and mentors have largely contributed to my success thus far. Their words and actions of encouragement, advice and financial support have been priceless. Secondly, do what you decide to do with integrity and in the midst of all initial challenges, find the strength to stay positive. Here for example, we all know how competitive the food market is, yet very many food companies are succeeding. Why? We eat everyday! In as much as there are so many products, there are even more people, many more undiscovered markets. So as long as your product or service is purposeful, needed and functional, you will succeed. Thirdly, don’t stop learning. Constantly search for information, people and opportunities to expand your horizon. Most importantly, pray, not primarily to make a lot of profit but that your ideas, products or services as they develop and become fully formed, will be of immense benefit to the world and as you pray, work.