Why most Nigerian businesses cannot become conglomerates – Economist
An economist, Dr Chijioke Ekechukwu, says Nigerian businesses find it difficult to become conglomerates due to both external and internal factors.
Ekechukwu, a former Director-General, Abuja Chamber of Commerce and Industry, expressed the view in an interview in Abuja.
He said many Nigerian businesses lacked human, material and financial capacity to grow bigger than what their family members can offer.
According to him, many Nigerian businesses engage in little or no research and development and their key officials lack the requisite education for growth and development.
According to him, many businesses also do not grow to become conglomerates due to lack of proper budgeting, accounting and costing.
“Many of them do not know what their financial positions are; as far as there is turnover, they don’t bother with knowing their profit or loss.
“There are no qualified professionals engaged in their firms; in other words, they are satisfied with cheap and unskilled labour.
“These and many more are responsible for the limited growth of the Nigerian indigenous businesses, why they have not become conglomerates.
“If these factors are properly addressed, many Nigerian businesses will grow and become conglomerates,’’ Ekechukwu said.
According to him, the external factors are lack of basic infrastructure in the country, inefficient rail system, lack of power, lack of good roads and insecurity.
Others, he said, are lack of access to huge and long term loans, high cost of funds and unfavourable government policies.