Janefrances Chibuzor
Despite Nigeria’s vast entrepreneurial potential, many aspiring business owners face significant challenges. Dr. Joel Obikoro, chairman of Jobiko Properties, an affiliate of Jobiko Group, discussed these obstacles at a recent meeting with Berexnews in Lagos.
He emphasised that while Nigeria has a thriving economy, numerous hurdles, particularly governmental policies stifle entrepreneurial progress. These issues must be addressed, especially now that the country’s oil revenue is dwindling.
Dr. Obikoro described Nigeria as a fertile ground for entrepreneurship, noting that opportunities exist in abundance for those who are willing to start their businesses. The country is seen as a place where people can easily venture without facing extensive bureaucratic delays. However, challenges also come with these opportunities, with government policies being one of the major setbacks.
A key issue affecting businesses, according to Dr. Obikoro, is the cost and availability of electricity. “Electricity tariffs are high, and the supply is inconsistent,” he said. “If we were to pay high tariffs and have reliable electricity, it would make life easier. But without steady power, we are forced to rely on expensive alternatives like fuel to run our businesses, especially for those in manufacturing.” The high cost of electricity coupled with frequent power outages severely impacts business profitability, leading to smaller returns on investment. The money businesses should be making goes into buying fuel to keep operations running.
Another factor contributing to the country’s economic challenges is the “Japa syndrome,” where Nigerians leave the country in search of better opportunities abroad. Many people are driven by frustration due to lack of job opportunities, and for some, the higher exchange rate of the dollar to the naira is a strong motivator. Dr. Obikoro highlighted how many Nigerians have sold land to fund their emigration, only to work abroad and send money back home to repurchase the land they sold. He stressed that while the Japa trend is understandable, it is detrimental to Nigeria’s economy, as the country loses skilled professionals, particularly doctors, whose expertise could have helped boost the economy.
He noted that Nigerians abroad contribute significantly to the country’s economic growth through remittances. However, the government’s inability to create an enabling environment for entrepreneurs and investors further drives people to leave. “When people continue to emigrate, we lose a lot of talent and potential,” he said. “This leaves us with economic downturns, and the government needs to address this to make Nigeria a more business-friendly environment.”
Dr. Obikoro also expressed concern over the lack of sufficient financial support for businesses. The cost of starting and running businesses, especially in sectors like dredging, can be prohibitive. For instance, the cost of equipment for his dredging operation is about 100 million Naira for the smallest dredger, with larger ones priced at 750 million Naira. Access to affordable business loans would make a significant difference in helping entrepreneurs thrive. He pointed out that his business employs over 40 staff members, providing direct and indirect job opportunities in the community. However, without access to financial resources, it would be difficult for businesses to scale and succeed.
Addressing the government’s role in fostering entrepreneurship, Dr. Obikoro suggested that more support is needed for the private sector. He emphasised that while private businesses are already creating jobs and contributing to the economy, the government could do more to help them succeed by making financing more accessible. “We don’t need the government to do everything for us, but they should create an environment that allows us to flourish,” he stated.
Also, he touched on his diversification strategy. He believes in spreading his investments across multiple sectors, including real estate and farming, to ensure a steady cash flow. Diversification, he explained, helps mitigate risk and ensures that even if one venture is struggling, others will compensate. “Cash flow is king,” he said. “I have learned that in business, you can’t rely on just one source of income. If one stream isn’t working, another will.”
Real estate, he added, remains one of the most lucrative industries in Nigeria. “Everything you do is connected to real estate,” he explained. “Whether it’s dredging, hospitality, or aviation, it all comes back to owning land.” However, real estate in Nigeria also faces its own challenges, particularly with government policies. The Jobiko bos pointed out how the government’s sudden clampdown on land acquisitions and demolitions in Lagos has made it more difficult for investors to operate.
As an entrepreneur, he believes that the government’s heavy-handed approach discourages investment and leads to further economic instability.
Moreover, he discussed the importance of transparent and visible land development plans. In developed countries, land use and zoning plans are easily accessible to investors, allowing them to make informed decisions. Unfortunately, Nigeria lacks such clarity. He suggested that the government should implement a master plan that clearly outlines land use, zoning, and future developments. This plan should be publicly available and easily accessible, perhaps through digital platforms, to prevent confusion and potential losses for investors.
Finally, Dr. Obikoro offered advice to the youth of Nigeria, urging them to be visionary in their pursuits. “Don’t just grow up; grow up,” he said. He explained that young people should focus on long-term goals and invest in things that will bring lasting value rather than chasing immediate gratification. “The energy we spend on negativity could be used for positive endeavours. We need to build something that will endure, not just something for today,” he said.
He also warned against the temptation of quick wealth through dishonest means. “Stealing, scamming, and engaging in illegal activities will only lead to destruction,” he warned. “You may think you’re getting ahead, but eventually, the consequences will catch up with you. Build your future on integrity and hard work.”
