Ensuring operating excellence in a price-driven regulatory environment- February 2025 Report
Operating in a highly competitive market like Nigeria requires a lot from many businesses. Market access, improving business competitiveness, and managing finance and funding can determine the trajectory of many of these businesses. This write-up gives a snapshot of what to look at when thinking about your operational plans.
Highlights
- The ease-of-doing business gains have been eroded by petroleum and FX subsidies, leading to the high cost of operations
- The cost of the funds has become higher and refused to tame inflation contrary to regulatory expectations.
- The high cost of compliance and regulatory permits has led to higher entry costs for new businesses, thereby reducing job creation and increasing unemployment.
Core Issues
- The reduction in consumer spending is becoming an albatross to the government and tied down capital and inventory for manufacturing companies.
- The increased fees for essential technology services such as electricity and telecommunication services continue to stifle growth.
- The proliferation of substandard goods and services leads to the loss of confidence in the public.
- Public perception of the role of government in the disruption of economic activities continues to be a surmounting block in making citizens perform their obligations truthfully.
Way forward
- Flexibility and agility in the government's response to ongoing policies can change the perception of the public and build trust, which stimulates business growth.
- Strengthening the levers of support that make economies of scale achievable by all classes of businesses must be encouraged.
- Stimulating the economy through a review of fiscal and monetary policies that directly impact economic growth and development
Related Posts
