Nigerian businesses are expandMany young Nigerians now own a lash tech business, do nails, own a pre-order only food stall, or sell some sort of soft service. This is even more common among university undergraduates who are becoming reputable for owning stands or stalls in school where they offer these services and gain loyal customers. However, one thing is observed: many of these ventures are being largely established due to a need to be independent and survive, rather than a burning passion.

The struggles of the Nigerian youth

“Entrepreneurship is not for the weak,” this is the response you get from almost everyone doing some sort of business in Nigeria, especially among young people. The factors for these are not far: unemployment, underemployment, lack of jobs, an unfriendly economy, and every man’s biggest nightmare, poverty.

For a long time, these factors have ravaged the Nigerian businesses, forcing people, especially the younger population, to create plan Bs, even when they have stable jobs.

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A recent exclusive by the Businessday newspaper has shown that most businesses formed by the youth are necessitated by the need to escape financial insufficiency. The article reported that 56.1 percent of informal business owners started their ventures in a bid to survive the harsh reality of unemployment, while another 35.9 percent began to augment the insufficient income gained from their jobs.

The report, which analysed over two million businesses and interviewed Micro, Small, and Medium businesses (MSMEs), suggested that most founders realised a need to consider other ways of generating income before they established their businesses.

Unspoken economic crises

Since 1991, the nation has averaged a 4.47 percent employment rate, according to the National Bureau of Statistics. This rate dropped to a record low of 3.7 percent in the fourth quarter of 2013, and rose to a high of 10.70 percent in the fourth quarter of 2019. Currently, the rate stands at 4.30 percent, claims the NBC. In addition to this, the formal sector now accounts for only seven percent of jobs.

The numbers directly reflect a subtle economic crisis: the inability to maintain a stable life with a single income, lack of job security, as well as scarcity of well-paying jobs. There is an imbalance between the existing human capital and employment opportunities in the country.

This has pushed a large number of the nation’s workforce, including fresh graduates and experienced professionals, into survival mode, just to make ends meet.

One job does not pay all the bills anymore

Most of the jobs available in Nigeria are no longer sufficient to pay for the high cost of living. Living in Lagos, for instance, the middle-class has to work at least two side hustles with their main job just to get by the daily task of surviving.

These reflect the fragile nature of the economy; the problems of recession, inflation, and higher costs of living, factors which have reduced the flames of passion in many young Nigerians establishing businesses.

While figures dictate estimates, they do not portray reality. It is undeniable that many businesses are now being established for expected profit. Data also shows that over 86 percent of Nigerians are now engaged in self-sustainable/non-paid jobs. Nobody wants to wait for the creation of more jobs. Rather, most people are creating jobs for themselves.

But Nigerian businesses need to thrive in passion again, not just because of survival. The government needs to act fast and alleviate the weight of these economic burdens in order to bring back stability and a business-friendly environment.

Meiza Nigeria