Advisory board member, London Business School Africa Society, Dr. Alim Abubakre, has charged the federal government and business stakeholders to urgently address the challenges facing the country following the latest recession.
According to him, Nigeria has suffered dire economic consequences as a result of COVID-19 pandemic long before the economic downturn.
Abubakre, a Nigerian-born lecturer at Coventry University, London, who observed this while speaking in Abuja, noted that while the COVID-19 pandemic had caused a virulent recession in many countries globally, Nigeria’s case was a bit much direr.
In a statement issued by Caroline Lucas of TEXEM UK founded by him, the don said: “Even before COVID-19 struck, Nigeria was already suffering from the adverse consequences of collapsing oil prices.
“Hence, without effective and impactful strategic leadership, the virus could aggravate the pain of an already hard-biting recession.
“For organisations that are not dynamic, responsive and agile, the effects of the recession are likely to continue hurting their performance into the foreseeable future and threaten their existence “
Abubakre said that in finding solutions, it was imperative for leaders to determine and clarify their strategic priorities by identifying those essential activities that they must do to survive and succeed.
He also advised government and business leaders to be fully informed about the happenings within and outside the industry by following trends and changes to identify opportunities for success.
“Recession hits both at a micro, intermediate and macro level, so understanding how the economy is affected as well as the impacts on your stakeholders and how you can effectively and efficiently unlock scarce value is critical.
“Manage your finances and cash flow meticulously as recession significantly affects sales, revenue and profits, and one way to manage its effects as a leader is to monitor your expenditure, earnings and cash flow carefully,” he said.
Abubakre advised business operators to offer incentives such as discounts for advanced payments and use of electronic remittance to receive sales revenue faster, adding that this could be a means of reducing default risks.
He said that most importantly, entrepreneurs should ensure that their spending was only limited to the most critical areas that they needed to focus on to keep their organisations going despite the harsh financial environment.
“It might be very imperative to downsize and lay off some staff to survive. As you tighten staffing levels, note that there are key people that you cannot afford to lose.
“It is not just enough to keep them. You also need to train those who remain with the organisation to keep their morale high and help you keep the organisation going despite the difficult situation.
“Also, through research and customer service, leaders need to ensure that their organisational products and services exceed the expectation of their customers in terms of functionality, delivery time and after-service support,” Abubakre said.
He noted that one way to expand business leaders’ scope across the borders was through seeking relevant areas where they could innovate and get new clients.
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