By Tony Obiechina, Abuja
In a bid to address the prevalent hardship in Nigeria, the federal government as well as development partners including the German government, European Union has begun move to institutionalize Inclusive Business upscaling model in Nigeria.
The concept of Inclusive Business (IB) which has been recognised for its contribution to inclusive growth and sustainable development, deals with enterprises that offer goods, services, and livelihoods on a commercially viable basis, integrating consumers at the base of the economic bottom of the pyramid (BoP) into their value chains.
Speaking during the stakeholders roundtable in Abuja on Thursday, Aisha Rimi, the Executive Secretary of Nigerian Investment Promotion Commission (NIPC) said that the important of these IBs to Nigeria cannot be overemphasised due to its contribution to poverty reduction and economic empowerment, involving the BoP as suppliers, employees, customers, and consumers.
Represented by Abayomi Salami, Rimi noted that Nigeria presently is in dire need of businesses that cater for the needs of the average masses whose business operations or models distinctly separate them from other businesses.
“As you are aware IBs are successful business models that incorporate social considerations into value chains, assisting people at the bottom of the pyramid (BoP) as suppliers, employees, customers, and consumers.
“Inclusive businesses will lead to less poverty and greater economic empowerment. Scaling up such models, which are sometimes limited to the local level, will eventually result in innovative commercial solutions and, more broadly, inclusive and sustainable economic growth and development.
“This aligns with the home-grown and private sector-driven 8-Point Economic Agenda of President Tinubu, which is predicated on food security, ending poverty, economic growth and job creation, access to capital, improving security, improving the playing field on which people and particularly companies operate, rule of law and fighting corruption which will predominantly fast track the achievement of the 2030 Sustainable Development Agenda,” she said.
She further explained that following the successful implementations of IBs in various countries, Nigeria embarked on an IB landscape study in July 2022, initiated by the Inclusive Business Action Network (IBAN) at the request of the Federal Government and Kaduna and Lagos State Governments which led to the development of a pilot Inclusive Business Strategy in Kaduna State.
In his remarks, Markus Wauschkuhn, head, SEDIN-GIZ program of the German government said that Inclusive business as commercial ventures are aimed to generate social impact while driving financial returns.
He explained that the huge presence of poverty and declining access to basic social services remains a major challenge in Nigeria.
“So it should be a sustainable business venture, targeting underserved populations. They provide good services and livelihoods on a commercial basis, incorporating consumers on the bottom of the economic pyramid into their respective value chains.
“Today, inclusive businesses are recognized globally for its contribution to inclusive growth, sustainable development, innovation, climate sustainability, and women’s economic empowerment.
He noted that while government and other stakeholders are making efforts to address the challenges, an adoption and upscaling of inclusive business model may support this effort significantly by helping to mobilize private investment to address these challenges.
Citing the National Bureau of Statistics report, Wauschkuhn decried that 63 percent of Nigerians, representing roughly a bit more than 130 million people were considered as multi-dimensionally poor and lacking access to basic social services and amenities.
“We are in 2024. We do not have an indication that this number has declined.
“These challenges are of that magnitude that government alone and also international cooperation is not sufficient to solve. We need the private sector involvement here and we have both the government of Nigeria as well as our international cooperation work on mobilizing these private sector funds,” he said.
Also speaking at the event, Blaise Ijebor, director, Risk Management Department at the Central Bank of Nigeria, reiterated the Bank’s commitment to creating conducive environment for economic growth and development.
According to him, the IB aligns with the economic development mandate of the government, which is focused on bottom-up and inclusive growth. READ ALSO:
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“This is what is happening in China and other countries around the world, we see global businesses grow out of small once. And that is why at the CBN, we are focusing on removing bottlenecks and supporting growth of MSMEs in Nigeria.
“The CBN is making effort to stabilize the naira and ensure it finds its real value. And we can also attest that the growth in inflation rate has been decelerating in past months and we hope to see more decrease,” he said.
The primary goal of the stakeholders Roundtable is to increase general awareness on inclusive business approach and its potentials to achieve Nigeria’s Agenda 2050 objectives as well as to present the assessment findings from the Inclusive Business Piloting in Kaduna state.
