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Politics And Entrepreneurship In Nigeria: The Dilemma Of Being A Nigerian Doing Business In Nigeria

Ossi Samuel

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politics and entrepreneurship in Nigeria

Politics And Entrepreneurship In Nigeria: The Dilemma Of Being A Nigerian Doing Business In Nigeria

I don’t have to define Nigeria. We all know what it is. Unfortunately, Nigeria has redefined itself. It is no longer that geographical territory with defined authority and a specific number of people. It has come to mean something more ominous. That thing has come to have an impact on Entrepreneurship. So, let us look at politics and entrepreneurship in Nigeria.

I will try to make this work devoid of all scholarly attributes as a layman would see it. My words will be as understandable as possible so that the vast majority of our users won’t find it boring and uninteresting.

Related: How to master the art of self discipline

For the benefit of those who will refer to this work in trying to define politics, it is a controversial topic. But you can see it from Easton’s view as the authoritative allocation of value. You can also define it as who gets what, when and how or in Nnoli’s words, all those activities that are directly or indirectly related to the acquisition of state power, consolidation of state power and the use of state power.

Simply put, politics is the interplay of powers as aligned to various interests within a geographical entity.

Well, let us leave politics. It will always be there as the undoing of many. I did give you a definition of entrepreneurship but it has been widely defined here. Just click on this link and you will see countless definitions of the concept.

When I saw the CEO of Sumobank talk about politics in Nigeria yesterday on his status, I was motivated and angry at the same time. Saying that Nigeria is a shithole of a country sounds more like an understatement than an issue. But it is what it is. Revolution may be our only hope but revolutions also have far-reaching implications on the polity.

This piece is an effort to realize the place of politics in the entrepreneurial sphere. How does the political mechanism dominant in the country affect and impact entrepreneurship in Nigeria? In the first place, we shall look at how politics affect entrepreneurship and we will look at remedies. Of what use is a lab test when no solution can be proffered? Let me do some magic people.

Related: The entrepreneurial lessons from the game of thrones

Politics And Entrepreneurship In Nigeria: How Politics Affect Entrepreneurship In Nigeria

  1. Grants, subsidies and loans

politics and entrepreneurship in Nigeria

For entrepreneurship to thrive there has to be easy access to money. You cannot ride a car without fuel. It is quite simple. To succeed as an entrepreneur, you will need funds to push your ideas.

In my years of working in Entrepreneur Platform, we have had to meet people with amazing entrepreneurial abilities and great innovative ideas and some ultimately gave up because of the lack of access to funds. That shit is not funny though.

Now, if the polity is in good hands, there would have been enough access to funds. Everybody won’t get funds but at least, people will get encouraged with what is available.

Don’t get it wrong though; there are grants, loans, and subsidies available but there are two problems with the schemes.

  • They are grossly inadequate. It can barely make any impact.
  • Even the little that is available is given to the wrong people most times due to favoritism and nepotism.
  1. Foreign perception

The way Nigerians living in Nigeria are perceived can only be experienced than imagined. It is beyond normal explanation and it is terrible. It is actually safe to say that you are viewed as a criminal just because you are a Nigerian.

Now, someone is going to ask me how it is the fault of politics. It is actually something I will conclude logically to avoid unnecessary confusion.

Politics controls everything in a country. It is the mechanism with which rules are made and enforced. The poor leadership has led to a lack of employment and a poor state of life. in fact, it seems that politicians live to impoverish people.

As a result of this poor state, people have resorted to other aspects making ends meet. One of them is advanced fee fraud which has metamorphosed to Yahoo Yahoo or G+ as the case may be. This has so dealt with the image of Nigeria that the people out there who would want to do business with the Nigerian entrepreneur are so skeptical.

I remember on several occasions where companies wanted to partner with sumobank but got skeptical after learning that we are Nigerians based in Nigeria. One of the deals would have gotten us a million dollars. So many entrepreneurs go through this same shit. That is the reality of politics and entrepreneurship in Nigeria.

  1. The quality of the education system

The education system is bad today because politics failed to take charge and better the lots of people there. The budget that is meant for the sector is always very low compared to what it should be and what is obtainable in other countries.

Resultantly, there is always bickering between the government and other concerned people on unpaid salaries, arrears, promotion, quality of infrastructure and general well being. The education system is not well arranged or placed to spur people to actions and that is what is. Entrepreneurs don’t get motivated by the school system so they are only inspired by others. It is wrong.

Of course, you can argue that these entrepreneurial courses offered in schools but they are done on a theoretical basis. This does not guarantee anything. Financial education is suffering and it is the result of the relationship between politics and entrepreneurship in Nigeria.

  1. Security

It is a well-known fact that security is necessary for entrepreneurship to succeed anywhere in the world. I know that it is the primary responsibility of the government to maintain security. You know the Nigerian situation brother, it is really great.

We have moved from Niger Delta insurgency to Kidnapping and from kidnapping to Boko Haram terrorism and now we are dealing with the Fulani Herdsmen Menace. Crazy country, right? How in God’s name do they want entrepreneurship to work in Nigeria? Well, it is practically everything that is affected by this gross mismanagement of resources and misplacement of priorities by the politicians. It is virtually every sector of the economy.

  1. Licensing and certification process

politics and entrepreneurship in Nigeria

If you have never gone to seek to license as a startup, you may not understand the import of what I’m about to explain. Politics and entrepreneurship in Nigeria are so related in this regard.

Did you hear about the licensing threshold of bike hailing startups? It is a whopping 25 million naira and these are startups. They are so naïve and insensitive to the plights of the young entrepreneur.

When we went to CBN to inquire on the share capital needed to run a Finetech company so we could start processing it, we were told that the cheapest is 50 million naira. We are meant to be a startup, remember.  The legislations are not just adding up and it is because politics and entrepreneurship in Nigeria are not acting harmoniously.

  1. The quality of lawmakers

The quality of our lawmakers will determine the nature of laws that are made in a country. Remember you cannot give what you don’t have. It is that simple.

Actually, I cannot begin to tell you about our legislators and policymakers’ incompetence. We wake up every day to one foolish policy. These guys are not entrepreneurial minded so it is actually difficult for them to make decisions that will have a positive impact on entrepreneurs. This is another issue on politics and entrepreneurship in Nigeria.

The Way Forward

Shall we remain in sin so that grace will abound? God forbid. There won’t be any need to put this up if we are not going to look into measures to curb the effects. Politics and entrepreneurship in Nigeria are so intertwined that for any increase in the lot of entrepreneurship to happen, there has to remain an increase in the nature of politics.

My friend, let me tell you the truth; there are many works on the deficiencies of our politics and how they have dealt with us. Today, we are just going to look at what can be done to better the political sphere. Sadly enough, as a student of political science, I know how difficult this is going to be. It is going to be crazily difficult. But it is doable.

I wanted to itemize the way forward but it is really of no use. The only way to get this going is to have a more responsive government that can change the image of the country and the way things are done. If this is not done, the prospect of entrepreneurship will still remain very poor.

To change our political system is a collective responsibility and until that is done, we are in for a bigger challenge.

Don’t get it wrong; even in adverse situations, you can still make it. But I want to ask you a question; is there really a need to trek to Lagos if you can just fly there. Time is of the essence.

 

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Ossi Samuel is a mafian thinker, an avid reader and writer, and political analyst. Am a humanitarian and fun loving person. I love Tech by the way and will always have your time if you have any ideas. I can be reached on Facebook

Advice

How To Invest 5 Million Naira In Nigeria 2021 – Top 5 Recommendations

Gudtalent Chrisent

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how to invest money in Nigeria

How To Invest 5 Million Naira Or More In Nigeria 

Indeed, 2020 was really a very dramatic year that affected lots of decisions both personal and business. While many markets have been swinging recklessly, it is very easy to get confused when deciding what investment to make that would maximize profits for you. Here at Entrepreneur Platform, we have put some list having looked at the new trends that are working for investors for your own insight on how to invest 5 Million Naira in Nigeria. 

If you wondering where you can invest 5 Million Naira or what sector to explore, below are our recommendations based on the industries capping:

How To Invest 5 Million And Above in Nigeria

  • Capital market
  • Cryptocurrency Investment
  • Forex Or Stocks Trading
  • Commercial agriculture
  • Venture funding via Angel investment

Discussing the best kind of investment with 5 million Naira can be a tricky one but our carefully selected recommendations are sure to help you know your risk appetite.

We have already made 3 recommendations in our previous article on how to invest 1 million Naira where we mentioned 1 of the best investment companies to invest 500k and above if your money is not up to 5million Naira for investment in Nigeria.

How To Invest 5 Million Naira In Nigeria

  • 1. Capital Market: (Invest with SHIFDA on Sumotrust)

According to Wikipedia, “capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments”.

One of the best capital market investments in Nigeria to make right now if you have 5 Million Naira and above to invest is by investing into SHIFDA, a fixed hedge fund investment offered by Sumotrust. It is secure and has 0 risks on the investor.

Sumotrust Investment has an ROI of 24% per annum with a minimum investment of 500,000 Naira and a maximum of 100 million Naira per individual.

Minimum maturity is 6 months to as much as 10 years.

With 5 Million Naira into Sumotrust SHIFDA, you will be getting 1.2 Million Naira returns per annum. The most interesting part if it is that its a secured investment.

To get started with SHIFDA by Sumotrust; 

  • Kindly visit www.sumotrust.com and create a free savings and investment account.
  • Login to your account and navigate to the ‘SHIFDA Wallet’ tab from the menu section.
  • Read through the details and follow the instructions given to invest.
  • Once your Investment request has been approved, go ahead and create a ‘Fixed Savings’ in your account, you will see a notification about your account qualifying for SHIFDA. Kindly fill-up the form and complete the process.
  • On the maturity date, your capital and interest will be automatically released into your Kick wallet where you can withdraw instantly to your Bank.
  • 2. Invest in Cryptocurrency:

Cryptocurrency investment is known to be the best investment of the last decade as seen on CNN

In 2020 alone, we save Bitcoin tell to as low as $3700 and in 9 months, went up to as high as over $18400, which is over X4 in ROI. 

Investing in cryptocurrency can be tricky and will cause you to lose money if you don’t know the right portfolios to hold.

If you’re just getting started, definitely, Bitcoin is one if not the only cryptocurrency to hold onto until you gain deeper knowledge and understanding of investing in cryptocurrency.

With platforms like Truzact, investing in cryptocurrency in Nigeria will never be a problem for you; as you can easily make Naira deposits using your Naira debit card or the virtual account number given to you and instantly convert it to Bitcoin.

The platform (Truzact) also allows you to save in cryptocurrencies and earn interest on your savings.To start investing into cryptocurrencies in Nigeria, kindly visit www.truzact.com and create an account, fund your wallet and instantly swap it to your favorite cryptocurrency.

  • 3. Invest in Foreign Stocks or Buy Eurobond.

The Nigerian stock market hasn’t performed really well when compared to the foreign stocks for some reasons like inflation against the Naira and other factors. 

However, investors are resorting to putting their money in foreign stocks where they get to bypass the adverse sides of inflation. You can download the InvestBamboo app from Google Playstore or Apple store, fund your account with Naira and buy US stocks directly from the App. 

Understand that the performance of your foreign stock investment is also determined by fundamental and technical analysis just like investing into bitcoin in Nigeria, so you will also need to do your due diligence before making your decision.

Looking at the 5 investment options in Nigeria listed here on how to invest 5 million Naira, Only investing with SHIFDA on Sumotrust promises secure investment and less risk management.

  • 4. Commercial agriculture

The agricultural investment will remain evergreen because people must eat to survive on daily basis. Anything Agriculture that is well-practiced on the commercial scale is sure to give you high ROI. You can go into non-perishable food production like Rice, beans, maize, melon, etc.

With commercial Agricultural investment, you should be on a 40-100% return on investment if properly done.

  • 5. Venture funding Or Angel investment

Venture funding is one business model that a lot of Nigerians aren’t doing for some reasons but I can tell you it’s a very profitable one. 

Venture Funding or Angel Investing is a type of business investment where one gets to invest a certain amount of money into a Business or startup in exchange for equity in the business. Both profit and losses are shared in Angel investment, meaning that you lose money when the business goes bad and you also make money based on the percentage of the business that belongs to you if the business goes well. 

The difference between Venture funding and Angel investing is that Venture funding lets companies invest in a startup for equity ownership while Angel investing lets you invest in a startup or business as a person. Venture funding is on a company level while Angel Investing is on a personal level. 

You can learn more about Venture capitalism here and Angel Investing here on Investopedia.

So now you have 5 Million Naira to invest in Nigeria but don’t want a secure investment of 24% via SHIFDA on Sumotrust and want something more flexible that lets you enjoy even better return, you can easily bet on a promising startup you trust based on stats and other judging metrics. 

There are lots of amazing startups in Nigeria with good prospects seeking funding to scale up, you can bet on one of them with your money and expect huge returns.

Check out our list of top 10 startups to look out for in 2021.

Still have the question of ‘where to invest my money in Nigeria’? Kindly check out the list of top investment opportunities in Nigeria.

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