I have been consistent: I am against the removal of Nigeria’s fuel subsidy when all we needed to do was to remove the corruption in the subsidy management. Yes,  I like strategic subsidies in economies because you have to subsidize something most times despite whatever Adam Smith postulated on his “invisible hands” construct. Yes, in the last 20 years, the United States Postal Service has not made a single profit (see data below). Why? The US is fine to make sure logistics and supply chains remain optimized for industries to grow.

(Nigeria is now operating on quasi fuel subsidies since there is no more correlation between the FX and the prices at the pumps, implying that someone is covering the differences.)

How can rural and urban America work without the postal service? Not possible. So, America tells the postal service NOT to use reflective pricing on shipping, making things cheaper across the nation, and especially in the rural areas. Of course, when all is done, they recover those “losses” in taxes, which typically grow because of more engaged economic activities across both urban and rural areas.

If you live in New York, you can buy an iPhone cover for $4 from China. That $4 includes shipping and handling. How can someone make an iPhone cover in China and ship it to you in New York for $4 and still remain in business? China has subsidized logistics.

Why this post? I am responding to those who want to make Nigeria a  100% free market system with zero subsidies. Good People, Nigeria needs energy subsidies, forex subsidies, etc BUT must remove the corruption in its subsidies so that only productive things receive those supports to advance the nation.  There is nothing wrong in fuel subsidies or forex subsidies, our challenge is that we have too much corruption in them and that makes them look bad. Every country subsidizes something, and when scaled, it becomes conglomerate tax.

Postal Service Net Income/Loss By Year

• 2023 – $6.5 billion loss
• 2022 –  $473 million loss
• 2021 – $6.9  billion loss
• 2020 – $7.6 billion loss
• 2019 – $8.8 billion loss
• 2018 – $3.9 billion loss
• 2017 – $2.7 billion loss
• 2016 – $5.6 billion loss
• 2015 – $5.1 billion loss
• 2014 – $5.5 billion loss
• 2013 – $5 billion loss
• 2012 – $15.9 billion loss
• 2011 – $5.1 billion loss
• 2010 – $8.5 billion loss
• 2009 – $3.8 billion loss
• 2008 – $2.8 billion loss
• 2007 – $5.1 billion loss
• 2006 – $900 million surplus
• 2005 – $1.4 billion surplus
• 2004 – $3.1 billion surplus
• 2003 – $3.9 billion surplus
• 2002 – $676 million loss
• 2001 – $1.7 billion loss

As the world praised the removal of fuel subsidies in June 2023, on the illusion that it would rekindle Nigeria's economy, a village boy from Ovim wrote: "My social media channels are classrooms. And most times, I write things which deviate from the “typical” consensus, partly… pic.twitter.com/Yl15U9Kxwt

— Ndubuisi Ekekwe (@ndekekwe) February 2, 2024

Good People,  welcome to the #best school. Thank you for choosing us to deepen your professional  and entrepreneurial knowledge. As our team members send onboarding instructions ahead of Monday when the academic festival begins, if you have any challenges, let us know; our support team is the best in the world of education with 24/7 support. 

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Running a business is a rollercoaster, and sometimes, the cash flow ride hits a sudden stop. It stops gushing out and starts trickling. Is this the time to hit Panic mode? Nah, not for the gritty entrepreneur, anyway! If you must survive these times, here are some moves you can make.

Slash and Burn (Your Expenses, Not Bridges)

It’s time to get ruthless with those expenses. Take a hard look at your budget and slash anything that doesn’t scream ‘essential.’ Fancy office snacks? Cut. Monthly subscriptions you don’t even remember signing up for? Definitely cut. Free up cash by trimming the fat and focusing on the lean, mean essentials that keep your business alive.

Hustle Harder (No, Seriously)

When the cash tap slows down, it’s time to hit the pavement and hustle like you’ve never hustled. Reach out to existing clients, pitch new ideas, and explore untapped markets. Don’t be afraid to get your hands dirty (legal deals, please) – after all, a little grit never hurts anyone. Hustle isn’t just a buzzword; it’s the lifeblood of entrepreneurship. Get out there, make those calls, send those emails, and let the world know your business isn’t just surviving; it’s thriving.

Payment Plans that Pack a Punch

Cash Flow hiccups often come with late payments. Get creative with your invoicing and set up payment plans that work for you and your clients. Be firm but flexible. It’s about maintaining relationships while ensuring your business stays afloat. Offering incentives for early payments or providing discounts for lump-sum settlements can sweeten the deal and get that cash trickling back in.

Call in the Cavalry (Or at Least Your Network)

You’re not in this alone. Reach out to your network – friends, family, business acquaintances, that one guy you met at a networking event three years ago – and let them know you’re navigating stormy financial waters. Sometimes, a helping hand, a strategic partnership, or even a small investment can be your business’s lifeline. Pride? Leave it at the door. Your network could be the key to unlocking new opportunities.

Pivot Like a Pro, if you need to

If you are stuck in a financial quicksand, it might be time to pivot. Evaluate your products or services and see if there’s a pivot waiting to happen. Can you tweak your offerings to meet current market demands? Maybe there’s an untapped niche you’ve been ignoring. Pivoting isn’t a sign of weakness; it’s a sign of adaptability, a trait every successful entrepreneur possesses. Embrace change, and let it breathe new life into your cash-strapped venture.

Negotiate, Don’t Capitulate

When the cash flow tap is barely dripping, it’s negotiation time. Talk to your suppliers, renegotiate contracts, and let them know you’re in the ring, ready to fight. Most suppliers prefer a loyal, struggling customer over no customer at all. Be honest about your situation, and you might find some unexpected allies willing to extend payment terms or offer discounts. It’s a tough world, and survival often depends on who can negotiate the best deals.

Don’t give up

Don’t let a dwindling cash flow become the end of your business. Remember, the best entrepreneurs aren’t just riders; they’re the ones who scream, “Bring it on!” When the cash stops flowing, don’t buckle under the pressure. There may be times when shutting down the business might be the right move, but that is not the focus of this piece. If there is even one reason to keep the business going, then don’t be afraid. Slash, hustle, negotiate, and pivot your way out of the storm.