Nigeria’s economy is tough but resilient – Ogedi-Alakwe
By Felicia Nwosu
Despite the prevailing economic challenges like inflation, high operating cost, foreign exchange paucity, and reduction in consumers’ purchasing power, the Nigerian economy remains resilient.
This assertion was made by Nsima Ogedi-Alakwe, the Principal Consultant, Gotcha Communications Ltd, during a one-on-one interview with MARKETING EDGE. She also empathized with the Nigerian consumers and manufacturers who have to cope with the economic hardship. She averred that the incessant rise in the cost of goods is also heightened by the impact of the Russian/Ukraine war.
“Everybody living in Nigeria knows tough times are here and we can see it all around us; inflation is very high at double digits. Last week it was 19% having moved up from 17% in May and food inflation itself is 20%. This tells you that every single time you are going out to buy anything, you are sure that the prices are going up. So the situation is tough but the economy is quite resilient because, in the toughness, we still manage to record some 3 percent GDP growth. We are living in an interesting time because the challenges also come with but this will be for those that are creating or watching out for opportunities.”
The foremost IMC industry professional mentioned that the Fast Moving Consumer Goods (FMCG) companies are equally affected by the economic reality since they are not insulated from the Nigerian economy.
“Most manufacturing companies run on diesel generators while the cost of energy is going up by the day. This and other operational costs have made the cost of doing business unbearable. Meanwhile, the consumers’ disposal income which is the target of manufacturers is continually shrinking because their salaries are not increasing while the cost of living continues to go up. This invariably also goes back to affect the manufacturers. So FMCGs are in a very tight situation. They have goods that consumers need but costs are going up. Even when they decide to increase prices, they’ll find out that it is not every cost that can be passed to the consumer. This brings a dilemma: ‘I see opportunities but I am bedeviled with cost, how do I ensure that I keep growing, keep doing my best to provide the daily needs of Nigerians.’” because if they don’t exist, you can imagine the plight of Nigerians.
The former Unilever Country Lead pointed out that the problem of manufacturers is compounded by the rising foreign exchange rate.
“The problems bedeviling the manufacturing sector are many and varied. High-interest rates, high exchange rates, and non-availability of foreign exchange coupled with the infrastructural deficit are some of the challenges that manufacturers are facing. And how are they solving these problems? I think two things that I have mentioned; creativity and innovation have to be key. We are seeing many manufacturers focus more on localization which helps in a number of ways, first, it helps reduce our reliance on forex to bring these items in, and second, it helps develop our economy.”
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