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Opportunities & Implications of the Nigerian Economy for SMEs in 2021

Mr. Chijioke Churuba spoke extensively on the Nigerian Economy and it’s implications when he came on the SME Radio Show. He is is the MD of Sprog Consulting Limited and sharing the insights he brought to bear will greatly benefit SMEs.

He laid emphasis on Digitalization as a new trend and how forward looking businesses must embrace it.

“SMEs can digitalize by first having an in-depth understanding of their business dynamics, market knowledge and consistent usage of digital strategies and platforms. SMEs should embrace new technologies and use the modern tools of technology to penetrate the market, improve their visibility in the market space and increase their output.”

Chijioke Churuba, MD Sprog Consulting

He weighed in on certain sectors that have been impacted greatly in the last year. He mentioned Agriculture as one of the sectors that will survive in the current economic because the closure of the border was a big help for the agriculture industry. He called out Real Estate as a sector to be cautious about because COVID-19 has shown us that we can literally do so much from the comfort of our homes without necessarily having a physical structure. Those in this sector should find ways to reevaluate their portfolios and see how they can meet the demands of the growing sectors (trade, telecommunications, agriculture, etc.) providing facilities like warehouses, storage facilities, etc. The manufacturing sector is also another sector that is likely to experience a dip due to the increasingly hostile business environment, from the increase in electricity tariff and petroleum products to increasing difficulty in clearing certain raw materials at the ports.

According to Mr Churuba, Nigeria’s 2021 budget will be of benefit to indigenous contractors, engineers and allied businesses. However, the level of impact on the economy will depend on other factors such as level of budget implementation, state of the global economy and the management of the COVID 19 pandemic. He advises that SMEs find ways to evolve by embracing forums and platforms as well as initiatives that will not just keep them in business, but also make them strong key players and contributors in any industry they find themselves. SMEs are encouraged to change the ‘My Business’ mind-set to the ‘Our Business’ mind-set. They are encouraged to put structures in place through corporate governance and strategic partnerships.

Lastly, he recommended that SMEs keep learning, improving and forming strong partnerships and alliances that will strengthen their businesses.

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