GRBusiness
Entrepreneurship: An Engine for Job Creation And Inclusive Growth in Nigeria
By: Adeniyi Ogunfowoke
Entrepreneurship simply put is taking the risk of running your own business. In the case of Nigeria, young Nigerians have to brave quite a myriad of challenges before they can actually float their businesses.
This has, however, discouraged, aspiring Nigerians to shelf their entrepreneurship dreams.
Unknown to them, being an entrepreneur does not mean you must have a brick and mortar store. You can run your entire business online – thanks to internet penetration.
Jumia and other e-commmerce platforms have proven that direct and indirect jobs can be created via ecommerce. Using Jumia as example, it has empowered thousands of Nigerians to run their businesses through various initiatives like the Jumia J Force Sales Consultancy, Jumia Vendor Hub, Jumia University and many others.
So, when it comes to job creation, you do not need to wait for the government. The government only needs to create an enabling environment while the private sector and entrepreneurs will provide the much-required employment. And being an entrepreneur is a reliable tool for closing the unemployment gap.
Entrepreneurs: Engines of Job Creation and Inclusive Growth
As developing countries continue to struggle with the limited capacity to create jobs and absorb new entrants into the labour market, the attractiveness of including entrepreneurship in job creation toolkits has grown.
Presently, entrepreneurs and small- and medium-sized enterprises (SMEs) are widely considered to be vital to national economies, particularly because they create a higher share of total jobs than other employers.
While entrepreneurial activities create some new jobs in the short term, more interestingly, the competition created by new firms can replace inefficient companies. The loss of jobs from those companies and from failing startups is offset by job creation in the first year of a firm’s life, providing a net increase in jobs for the overall economy in the long term.
Challenges Facing Entrepreneurs in Nigeria
Promoting an ecosystem that nurtures entrepreneurs should be an important policy priority for governments looking to further develop their economies. However, despite an increased policy focus on the value of entrepreneurship and SMEs, there are still many challenges facing entrepreneurship in a country like Nigeria. They include but not limited to (1.) lack of capital ( 2) difficulty in securing loans (3) lack of infrastructure (4) poor entrepreneurship knowledge.
Despite these challenges, there are countless companies in the country that are performing and still employing Nigerians. In fact, capital is no longer an excuse when it comes to floating a business. There are a good number of fintechs out there that are willing and ready to grant business loans within 24 hours as long as you meet their requirements. On Jumia’s part, it offers business loans to vendors who have met the terms and conditions. This has boosted their businesses and helped them employ more hands. The reason why this types of loans are attractive to would-be entrepreneurs is that of their flexible repayment plans.
Improving the Ecosystem for Entrepreneurship
The entrepreneurship ecosystem in Nigeria is growing at a geometric pace. Today, there are incubation hubs, accelerators and innovation centres training and grooming the next set entrepreneurs. They will not only get training, but they will also get funding which cam sometimes be equity free. However, there is more to be done to ensure that the efforts are not just window dressing.
There must be a strong and solid collaboration between government and SMEs, ecommerce companies and innovation centres. These will help ensure that the efforts are well-coordinated.
Some of the other ways to improve the entrepreneurship ecosystem include regulatory reform, socio-cultural change and education and access to credit and financing.
Clearly, entrepreneurs across the country would benefit significantly from having easy access to neighbouring markets for finance, consumers, and input goods and services. Harmonizing supply chains for entrepreneurs would go a long way in improving their market position.
The economic urgency of providing jobs has become clear following the high unemployment rates. While surely not a panacea for all of Nigeria’s unemployment woes, programs that spur entrepreneurship and support SMEs can help Nigeria provide jobs and promote inclusive growth.
Finance
Dangote Cement Pays Over N3.3 Trillion in Dividends to Shareholders in 15 Years
…Vows to transform Africa by making it self-sufficient in cement, clinker
Shareholders of Dangote Cement Plc have received over N3.3 trillion in dividends over the last 15 years. Aside from this impressive dividend payout, the shareholders have also significantly benefited from the capital appreciation of the cement stock.
The benefits to the shareholders were disclosed on the floor of the Nigerian Exchange last Wednesday during the “Facts Behind the Figure” presentation, by the Management and Board of Dangote Cement, which was ably led by the new Chairman, Mr. Emmanuel Ikazoboh.
Ikazobor who just assumed the position of the chairman from Aliko Dangote, thanked the shareholders for standing by the company, while also assuring them of consistent good returns on their investments.
He said Dangote Cement remains resolute in transforming Africa by creating sustainable value for all its stakeholders, as it will do all to achieve its vision of making Africa self-sufficient in cement and clinker.
He stated that: “To our investors, you have my unwavering commitment to safeguarding and growing your investment. To our regulators and market operators, you have my pledge of continued partnership and adherence to governance standards that lead rather than follow. To our employees and partners, you have my gratitude and my assurance that our collective strength will propel us to achievements we haven’t yet imagined.”
Speaking further on the future of the company, the Chief Executive of the company, Arvind Pathak, said: “We aim to expand installed capacity to 66.4Mta by 2030, supporting our long-term vision of making Africa self-sufficient in cement and clinker production. This growth will be driven by a mix of greenfield and brownfield projects.”
He revealed that the company has commissioned the first phase (1.5Mta) of its 3Mta Côte d’Ivoire plant, while construction of the 6Mta integrated Itori Plant continues to advance steadily. In addition, the company, according to him, has announced a $400 million investment to double its production capacity in Ethiopia.
He added that: “Over the past 15 years, DCP has committed more than $8.5 billion in capital investments across Africa, underscoring our long-term confidence in the region’s growth prospects.”
The Group Chairman of the Nigerian Exchange Group (NGX Group), Alhaji (Dr.) Umaru Kwairanga, praised the President/Chief Executive, Dangote Group, Aliko Dangote, for his substantial contributions to the Nigerian capital market and private sector development. He said the former Chairman of Dangote Cement, who is also his mentor, has clearly shown that wealth can be created but also transferred to the public through the capital market.
Group Managing Director and Chief Executive of the Nigerian Exchange Group, Temi Popoola, also lauded the new Management and Board of Dangote Cement, noting that with Mr. Ikazoboh as the Chairman, the shareholders will surely be happy.
It would be recalled that the shareholders of the company, in its last Annual General Meeting (AGM) for the year 2024, were full of praise for the Board, Management, and staff of the company after approving a dividend payout of N502.6 billion, which translated to N30 kobo per share.
The company, in the same vein, also significantly increased its social investments by 469.8 per cent to N3.2 billion. The corporate social responsibility (CSR) activities were in education, healthcare, agriculture, infrastructure, and economic empowerment.
President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Faruk Umar, said the shareholders were pleased with Aliko Dangote and his team. He said that for the company to still pay a robust dividend despite the obvious economic challenges, which also affected their operations, shows the doggedness and fighting entrepreneurial spirit of the management of the company.
According to him: “We are happy with this result. The year 2024 was very challenging due to the fluctuations in the foreign exchange market and the company’s expansion programme. But despite all these challenges, the company was still able to pay us a very good dividend and even gave us hope of better returns on our investments in the years to come. This is very commendable, and it is only a company like Dangote Cement that can achieve this laudable feat.”
Chairperson of the Pragmatic Shareholders Association of Nigeria, Bisi Bakare, also commended the company’s consistent dividend payment, noting that the company is moving in the best way of corporate governance. He stated that: “As a shareholder and an active investor of this company, I am very happy and pleased with the performance of our company so far. The earnings are not even up to N30 per share, and for the company to still declare N30 per share dividend speaks volumes of the quality of leadership that we are lucky to have in Dangote Cement. It should also be noted that Dangote Cement is the only manufacturing company that paid the highest dividend in the year under review. So, we are happy and very proud to be part of this company.”
A renowned economist, Dr. Biodun Adedipe, the Chief Consultant/CEO, B. Adedipe & Associates Limited, says fintech and financial inclusion are not only contemporary in the Nigerian financial ecosystem, they also hold exciting promises in the transition of the Nigerian economy from jobless growth of over two decades now, to inclusive and sustainable growth that assures shared prosperity for all stakeholders.
Adedipe added that over $2 billion were invested in fintech and startups by over 50 angel investors and venture capitalists in 2024.
Delivering the keynote paper at the 2nd Business Journal Fintech & Financial Inclusion Roundtable 2025 in Lagos, Adedipe described financial inclusion as a critical driver of economic growth and poverty alleviation.
“This makes financial inclusion critical to developing economies, especially those like Nigeria that have been experiencing jobless growth in the last 20 years thereabout and also deep in multi-dimensional poverty. The real challenge resides at the bottom of the pyramid where there is not only poor access to finance but also lack of the basic elements that define good quality of life.”
In its 2023 survey, EFInA reported 64% financial inclusion in Nigeria, driven by marginal growth in the banked population and major gains in non-bank formal adoption.
He listed the opportunities of both fintech and financial inclusion in Nigeria to include youthful and tech savvy population, increasing demand for financial services, unbanked and under-served population, significant informal economy estimated at 54% to 58% of Nigeria’s Gross Domestic Product (GDP) and necessity-based entrepreneurship, which is a rampant phenomenon in fragile economies where informal economic activities and low income are pervasive.
Adedipe said the challenges facing the Nigerian economy in terms of fintech and financial inclusion include the ability and capacity of the Central Bank of Nigeria (CBN) in promoting and regulating the two concepts effectively.
He listed past and current CBN interventions as the National Financial Inclusion Strategy, National FinTech Strategy, Strategy for Leveraging Agent Networks to Drive Women’s Financial Inclusion and Payment System Vision 2025.
Other key pitfalls to avoid are measuring, identifying and filling gaps, consumer protection and awareness, cost and affordability, technology and infrastructure.
The economist added that both regulators and operators also face significant risks – market, structural, strategic, cybersecurity and operational, as well cultural barriers and gender bias, and credit assessment and KYC.
“If Nigeria (or any developing country for that matter) will maximally benefit from financial inclusion and the deep role that fintech plays in that process, there must be a balance of interests. That balance will be effective only if all stakeholders collaborate (no one seeking to take advantage of the other) and maintain tight focus on the over-arching purpose of inclusive growth and shared prosperity.”
He said for Nigeria to have an inclusive financial system, policies, regulations, products, services, technology and infrastructure must be inclusive by design.
Other factors include integrated system, safe and efficient digital payment/finance ecosystem, economically sustainable and commercially viable market infrastructure, robust data information system and effective regulation.
According to Remita “as Nigeria continues to embrace digital transformation and foster innovation in the financial sector, the role of fintech in empowering SMEs will only grow in significance. With a young and dynamic entrepreneurial ecosystem, the demand for fintech solutions tailored for SMEs is expected to soar, driving further innovation and competition in the market.”
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) said it has observed with deep concern the rising tension within the downstream oil and gas industry and the possibility of an industrial action that could disrupt national petroleum supply and distribution.
As responsible stakeholders in this vital sector of the Nigerian economy, Olufemi Adewole, executive secretary, DAPPMAN, said they recognize the central importance of industrial harmony to the stability of the industry, the protection of jobs, and the sustenance of revenues accruable to the nation.
He said that the potential impact of any strike on ordinary Nigerians, businesses, and government finances cannot be overstated.
“DAPPMAN therefore appeals to all parties involved to exercise utmost restraint and embrace constructive dialogue as the most effective means of resolving disagreements.
“In particular, DAPPMAN calls for the urgent intervention of the Federal Government in addressing the concerns of all aggrieved persons.
“We firmly believe that engagement at the roundtable will yield lasting solutions and prevent avoidable disruptions in the sector.
“Our Association’s consistent position has always been to collaborate with government, labour unions, investors, and other critical stakeholders to create a win-win situation that sustains investment, protects workers’ rights, and guarantees an uninterrupted supply of petroleum products nationwide.
“We humbly urge all parties to sheath their swords, avoid actions that could escalate the situation, and allow room for negotiations that will address concerns in a fair, balanced, and sustainable manner. “The Depot and Petroleum Products Marketers Association of Nigeria remains committed to playing a constructive role in facilitating peace, cooperation, and progress in the oil and gas sector for the ultimate benefit of Nigeria and her citizens.’
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