Ajibola Olomola, Partner and Head of Deal Advisory, Mergers and Acquisition Tax and Regulatory Practice, KPMG Nigeria, has stated that businesses should be led by optimism, particularly as it relates to the country’s electioneering period.
Olomola expressed confidence about the candidates running in the election, calling them individuals with strong ideas for moving the nation ahead.
He addressed yesterday at the Franco-Nigerian Chamber of Commerce and Industry’s (FNCCI) business breakfast event with the theme, “Nigeria in 2023: Business, Politics and Everything in-between.”
He asserts that these candidates have extremely dissimilar viewpoints, however each of them individually appears to be supportive of improving the nation, addressing structural issues, and boosting the economy.
He claimed that fiscal policy changes and new ideas are often introduced by new governments in Nigeria.
The elimination of fuel subsidies is a significant issue that the majority of presidential contenders have discussed. He pointed out that this will affect how much it will cost to conduct business in Nigeria.
He asserts that these candidates have extremely dissimilar viewpoints, however each of them individually appears to be supportive of improving the nation, addressing structural issues, and boosting the economy.
He claimed that fiscal policy changes and new ideas are often introduced by new governments in Nigeria.
The elimination of fuel subsidies is a significant issue that the majority of presidential contenders have discussed. He pointed out that this will affect how much it will cost to conduct business in Nigeria.
“So, we can be optimistic so long as we have peaceful and fair elections the average Nigerian can accept to be credible, we can expect that Nigeria would be better for it and we would be able to attract Foreign Direct Investments (FDIs) into the country that can help us to grow the economy.”
Additionally, he counseled companies to take their time accumulating cash at this time because there are still many untapped potentials in the Nigerian economy.
“We have significant gold deposit in Zamfara, same as deposit of precious metals in the Borno area; there are significant investment being made in the Dangote refinery, the Imota rice mill that the President commissioned last week, there are so many new things going on in Nigeria that can galvanise investment. So, companies should get ready for Nigeria,” he said.
Speaking about the Central Bank of Nigeria’s (CBN) currency exchange, he claimed that the average Nigerian has a difficult time making ends meet because there is no cash to be found everywhere and without cash, it is impossible to buy food.
“Things are hard but we hope that the Central Bank will be able to push enough of the new naira notes into circulation so that the informal economy is not completely destroyed. Right now there is a lot of pressure on the micro and small businesses who depend entirely or very largely on cash. This is also an opportunity to push financial inclusiveness and bring more people into the formal economy. We hope that things will get better,” he said.
Dr. Olisa Agbakoba, senior partner at Olisa Agbakoba Legal (OAL), expressed hope that the Independent National Electoral Commission (INEC) and the governors will make the correct decisions to advance the nation.
Director General of the FNCCI, Moses Umoru, stated that although Nigeria has a robust economy, conducting business there is not without challenges.
Umoru stated: “We have problems with infrastructure, electricity but in my closing argument, in a country where there are so many problems, what it does is to create an opportunity for businesses to be born. So most at times if the private sectors can plug in to these problems they can be able to do it. But the private sector cannot just come in to do it; they need policy that will support investments.”
“It is an election year; we are looking forward to subsidy removal, a better economic practice, it is very key for us.”
