Following the latest security alert issued by the UK government, business expert and chief commercial officer, ITEX, Adekunle Adebiyi, has addressed the impact of insecurity on sales and distribution of goods and services in Nigeria, and provided advisory on sustaining profit amidst the concerns.
Adebiyi spoke on the impact these security concerns pose to businesses in Nigeria and bemoaned the volatile nature of running a business in the Nigerian clime.
Speaking on the many woes business owners and organisations have to endure, he said, “Running a business in Nigeria is a daunting endeavour that requires a level of adroitness and business acumen to make a success of it. Although most businesses have their peculiar challenges, an unfavourable business environment characterised by bureaucratic processes, the poor state of infrastructure, and an ever-increasing rate of insecurity will stifle businesses of any scale.”
He lamented the state of insecurity in Nigeria, the sixth most terrorised country in the world, and pointed out that these security alerts by foreign governments negatively impact and threaten foreign trade.
Adebiyi noted that, “where there is insecurity, stock availability is impacted. This can in turn lower the sales and reputation of the company and drive customers to the competition. When physical items cannot be moved from one place to another, the supply chain is disrupted and the distribution of raw materials becomes difficult. We must begin to actively seek out ways to cut down on the long-term effects of insecurity on our businesses and in the long run, our economy.”
He emphasised that small firms are hit the hardest because of limited access to funds as banks are either shut or only operating during limited hours and because less than one percent of Nigerian MSMEs are insured, adding that with the devastating effect of insecurity on businesses, government intervention remains the first line of defense against insecurity but organisations must actively seek out ways to mitigate its effects.
He added that organisations must prioritise hiring locals as staff, locals are usually familiar with the area and the nuances and are often brokers of peace in times of insecurity.
