Entrepreneurial Skills Critical To Overcoming Recession- Ohuabunwa

Knowledge on entrepreneurial skills and business successes are essential in lifting Nigeria's economy out of recession‎, said Mazi Sam Ohuabunwa, founder, Sam Ohuabunwa Foundation for Economic Empowerment (SOFEE).

Ohuabunwa‎ made the remark during the Foundation's Economic Empowerment & Management Training Series in Lagos on Friday, adding that promoting creativity, technological innovations, Entrepreneurship and management excellence are part of measures to refocus SMEs and the economy at large.

Nigeria’s economy slid into recession after negative growth in the first two quarters of the year, the National Bureau of Statistics (NBS) said in August 2016.

Nigeria, Africa’s top economy, has been battered by low oil prices hammering government revenues, weakening the national currency and driving up inflation to an 11-year high.

“In the second quarter of 2016, the nation’s Gross Domestic Product (GDP) declined by -2.06 percent (year-on-year) in real terms,” the NBS said. “This was lower by 1.70 percentage points from the growth rate of 0.36 percent recorded in the preceding quarter, and also lower by 4.41 percentage points from the growth rate of 2.35 percent recorded in the corresponding quarter of 2015,” it said.

However, Mazi Ohuabunwa said that facts indicate the country's economy headed towards recession at about eight quarters ago following the depreciation of the GDP over time.

"We ought to have taken more pro-active steps to preventing the recession as against passing the blames".

Presently, the non-oil sector contributes most to the GDP at about 89%; trade (wholesale and retail) 20%; oil and gas 10%; manufacturing 9%; real estate 6%; client services 4%.

He said, although the indices show the economy is diversifying, oil and gas sector still accounts for 90% forex circulation which still Limits government's effort ‎to rejig the economy.

He regretted the country's declining global (business) competitiveness ‎has also adversely affected the economy, causing loss of faith in the economy by foreign investors.

"On ease of doing business, Nigeria stands 169th out of 189 on global ranking. This is really hurting businesses. For instance, a pharmaceutical company was on the verge of closing its manufacturing plant because a chemical it was supposed to import, the papers were delayed for about six months by the office of the National Security Adviser (NSA)," he decried.

He urged professional bodies, manufacturing association and other bodies to continue to rally around the government, advocating for better business environment.

"Professional bodies must keep advocating for a better business environment especially for the survival of SMEs. For instance, critical issues that impact the economy include the drastic fall in oil prices; but it was not just that because oil price was lower in the 80's and late 90's. We failed to save for the rainy day. So when the revenue declined from N70billion to N40billion and capital inflow less than $2billion in the first six months of 2016, coupled with insecurity, import restriction, corruption fighting back, leading to low investors' confidence, subsisting national image challenge, low national productivity, these are not good for the economy hence we are in recession.

"Government has to checkmate the rate of holidays because companies record huge losses any day factories are closed. People are considering several options, but we believe the economy will blossom", he said.