Simply, the best companies in Nigeria have not been established. If anyone tells you that all the opportunities are gone, respectfully ignore him or her. If Nigeria is operating at its optimal productivity level, its GDP should be $3 trillion (well above the current $500 billion). If you do the math, it means Nigeria needs 6X multiples to attain equilibrium. About 90% of the companies in Nigeria today are not wired for that type of leverageable growth. Yes, even if they try, the anchored elements upon which they are built cannot enable them to experience that redesign.
Only new species will provide that growth under new tenets, driven by new business models, energized on new policies. Hope you get the point why our insurance sector has less than 2% penetration, electricity companies deliver darkness to more customers than light, potable clean water nonexistent, using 65% of workers to produce hunger when others use 5% to produce excess food, [add your list], and banks serving less than 35 million unique customers in a nation of about 200 million citizens.
People, the best companies for Nigeria have not been founded. Yes, they have not. It is safe to blame customers. But I take you back to the 1990s when new generation banks came, and brought many citizens to believe in banking services. We need that type of redesign in insurance, water services, electricity, education, healthcare, and more. The companies that would make such happen are scarce today!
The biggest opportunity in the next ten years in Nigeria would be expanding sizes of industrial sectors, not just winning market share. By that I mean expanding the sizes of sectors like insurance, agriculture, etc, through leverageable elements, not just winning market share out of yoyo players in an industry.
Are you better commanding 10% market share in a $100 billion sector than 20% in a $10 billion one? I will vote for the first option: only new thinking will make such redesigns happen. I explain in this video.
1. Advance your career with Tekedia Mini-MBA (Sept 13 – Dec 6, 2021): 140 global faculty, online, self-paced, $140 (or N50,000 naira). Click and register here.
2. Click to join Tekedia Capital Syndicate and own a piece of Africa’s finest startups with a minimum of $10,000 investment.