Most African countries and
economies have resolved to emerge from the damaging impact of a closed economy,
we begin to witness economic resurgence, better economic policies, governance
and the use of natural resources and more business-friendly policies with
stronger demand for Africa’s commodities from the leaders among emerging
economies. The effect is that despite
the economic down-turn being experienced by developed countries, there is a
steady growth in trade and economy in African countries.
African working class have been
identified as the new economic engine following studies carried out, United
Nations Conference on Trade and Development (UNCTAD) has reported that Africa
is the second most connected region in the world after Asia. Nigeria being one of the prominent African
countries has seen vigorous and rapid growth in technology by bringing innovation
and connectivity to consumers. This has greatly altered lifestyle, business in
the area of mobile banking and all units of business.
Nigerian consumers are known to
have style and taste and it is expected that they deserve better than what they
are receiving today from dealers and agents of companies that provide service
to the Nigerian consumer market. The Nigerian consumers are known to be highly
upscale in demand for cell phones and fashion items. Nigeria has a large
population and one of the largest population of working class. This class is
able to earn income and spend their money as they wish.
85% of Nigerians own and use cell
phones of one model or the other. The
mobile phones market in Nigeria alone keeps many Asian companies in business
and their businesses have done so well that they have moved a large chunk of
their business to Nigeria
Another area impacted by this
trend is the fashion industry. Nigerian working class hardly spare costs in
acquiring trending fashion items for personal use as well as for gift items to
loved ones. Nigerian consumers are still very fast in catching up with fashion
trends and importers are quick to flood the market with these items. The
producers of these fashion items are aware of the Nigerian market and they are
always on the lookout for expansion opportunities into the Nigerian frontier.
This growth in economy has been
so fast that banking and retail companies are considering expansion into
Nigeria targeting a growing middle class of consumers. African Development Bank
(ADB) reports that one of the results of strong economic growth in recent years
has been a significant increase in the size of the African middle class. And
this middle class is the key to Africa’s future prosperity.
Nigerians are known to be widely
travelled and Nigerians can be found in some of the world’s most remote
islands. Travelling far away from home in search of the golden fleece puts
these migrants under pressure in the sense that a large number of family
obligations depend on their income and what funds they are able to repatriate
home. We gather that over USD400 billion is sent to various parts of the world
by migrant workers every year and of this amount, USD325 billion is headed for
developing countries like Nigeria. Money Transfer Companies basically charge
the initial fee to transfer funds and then there is another charge because the
foreign currency exchange rate (exchange rate spread) used generates a ‘bonus
profit’ for the service provider who is not obligated to disclose this information
to the consumer; some pay points also charge recipients to collect the
remittance. Many reasons are given for this social injustice and some of the
reasons include: lack of transparency in pricing, lack of competition and
insufficient information at the disposal of the consumer.
There was a time we had no choice
but love, welcome and accept our local TV and radio stations because they were
the only ones on the air and government had total monopoly. I remember as a child, we happily and eagerly
waited for the TV station to commence transmission at 6pm. The ritual before the opening involved some
non-descript scratch-like sound, some music and eventually the national anthem
and the citizens’ pledge. After the
children’s belt, the current affairs and news programmes dominate the airwaves
until after the network or national news when a lean movie would be aired until
the station would close at midnight.
Today, we have some satellite stations
airing two or three different episodes of a soap opera in one day, some others
showing up to five different football matches in a day unlike when all that was
available was the results of the matches played and of course seeing some snap
shots of the action in newspapers, posters or cards of chewing gum, etc. Today, consumers can programme your TV to
record what is aired on another channel while you are away altogether. This
inefficiency on the part of Nigerian broadcasting establishments has provided
avenue for good business for cable service providing companies from South
Africa for instance. Painfully, the fact that there is little or no competition
allows these cable companies to take advantage of the Nigerian consumer; a show
like Oprah Winfrey show is never current; Saturday Night live with Jon Stewart
is also substantially outdated. Much of what Nigerian consumers are compelled
to view are things that South African and Ghanian consumers will not tolerate.
Knock-offs: one of the many names
for counterfeited goods. Counterfeiting
is one form of business that came to be in the late 19th century and
has spread all over the world. It has become popular among consumers and it has
gained a very solid base. Nigeria is by no means exempted from the influx of
knock off cell phones. Many more companies have moved their production lines to
cheaper labour markets of the third world, areas with weaker labour laws or
environmental regulations; they give means of production to foreign
workers. These new producers have little
or no loyalty to the original company or the product. The motives include a wider reach, ease of
access to raw materials and more consumers, lower costs of production for
manufacturers, promotion as well as acquisition which amounts to more profit
for the manufacturer and the marketer, cutting out cost of adverts, cutting off
the middlemen and marketing directly to the consumer.
There must be a yardstick to
control the type of vehicles that enter Nigeria; there must be some regulations
which are being circumvented as some officials are turning a blind eye while
this illegal practice goes on. Nigerians
work hard and are entitled to good quality of life. It is not true that all Nigerians like cheap
stuff and if these cheap stuff stocking dealers do not manipulate the trade
pattern, there would still be market for good quality cars to enter Nigeria and
no right thinking consumer would be satisfied with a defective product just
because it is cheaper or less expensive.
It has become commonplace to see overseas schools that
regularly advertise one course or the other in our dailies. These adverts are
targeted at Nigerian students or people resident in Nigeria and the adverts are
usually followed by seminars for which non-refundable registration fees are
charged.
A visit to some foreign embassies
in Nigeria will showcase how unfriendly some foreign missions are to Nigerians
in general; their attitude may be explained away using the excuse of too many
reports of violence, crime and fraud cases involving Nigerians abroad. This can be taken in quite easily however it
is disheartening to note that the quality of education being served by majority
of our higher institutions has created an inroad for institutions that are
founded on a more solid structure to explore the avenue of directing their
business at Nigerians. Be that as it may, these foreign institutions flock into
Nigeria annually to solicit for prospective students to attend their schools in
their own country.
The Minister of Finance, Mrs.
Ngozi Okonjo-Iweala in one of the TEDx seminars called on foreign investors to
bring their business to Nigeria if they truly desire to support the economic
growth and development of Nigeria. Taking this call one step forward, would it
not be a welcome development for these overseas institutions to bring their
schools to Nigeria as a means of making it easier for Nigerian students to
study and also to provide employment for Nigerians and to generally support in
developing the Nigerian economy? Establishing such institutions in Nigeria will
be mutually beneficial as these institutions would equally profit from the
venture.
The same goes for medical care.
What medical care being offered Nigerians by the government leaves a lot to be
desired and for many Nigerians who can afford it, the option of taking their
loved ones abroad for medical treatment has become the order of the day.
The government of the day is
working at an emerging economy and we begin to witness economic resurgence,
better economic policies, governance and the use of natural resources and more
business-friendly policies with stronger demand for Nigeria’s commodities from
the leading countries among the emerging economies. The effect is that in spite
of the economic down-turn being experienced by developed countries, there is a
steady growth in trade and economy in Nigeria.
With the reforms that have been introduced into the Nigerian
economic system; there is every reason to forecast that if the programme
proceeds without hitches, Nigeria will be one of the most buoyant African
country. It is only apt to encourage prospective
businesses to put in every possible effort to secure franchising arrangements
with worthy brands in Nigeria and also internationally. More like
internationally due to the significant amounts of training that they provide
which is not common among many others.
In addition, consumer advocacy groups working within the
framework of the National Consumer Protection Council will need to be more
prominent to ensure that Nigerian consumers are no longer taken for granted.
Nigerian consumers spend much more than some other nations where consumerism is
more active and manufacturers have learnt not to take such consumers for
granted. It is not about spotting the default and going back home to wait for
the government to do something; there is the urgent need to revive the spirit
of consumerism in Nigeria.