2017 could be tougher for Nigerians, experts say

By Abdul Olalekan

To economic experts, 2017 might not be better than what the country witnessed in 2016 as the twin tragedy of high inflation of naira devaluation will still persist in the New Year. With tough operating environment expected to continue in 2017, experts suggested ways Nigerians can survive the hard times.

The President, Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Kayode Okunoren, said he expects the operating environment to be tougher in 2017, stating that the only way out is for insurance brokers to be creative and adhere to high ethical practice. This, he said, will make them stay afloat amid harsh operating environment in economic recession.

He added that brokers must continually seek for ways to add value to their clients and covenant their services, noting that insurance generally tend to suffer in this clime during economic downturn as many individuals and even corporate institutions still ignorantly hold the views that insurance should be consigned to the rung of necessities list, which is ill informed.

“I think we should all as professionals know this fact and take it as a marketing campaign to reaffirm the belief of clients in insurance at this time. Also, the times we are in calls for creativity and high ethical adherence by professionals to stay afloat. We must continually seek for ways to add value to our clients and covenant their services,” he said.

The President, Association of Registered Insurance Agents of Nigeria (ARIAN), Mr. Gbadebo Olameru, has advised insurance agents in the country to adopt new business strategies to survive in a more challenging business environment.

This, he said, means some agents might be out of jobs sooner than later, if insurance agents refused to accept the fact that it is longer business as usual.

Stating that the business is changing, he stressed that if agents want to maintain their relevance in the insurance industry, they must research more, increase their appetite for knowledge by becoming a professional in the industry and have a taste of great ambition.

For Nigeria to move out of the current economic recession, the country must embrace, in totality, risk management, said, the President, Risk Managers Society of Nigeria  (RIMSON), Engr. Jacob Adeosun.

He added that  the economic hardship in the country arose as a result of breakdown in risk management, noting that it is now time to right this wrong in a bid to propel rapid economic growth and development.

Adeosun said all human endeavour deserved risk management, especially, as we are faced with different hazards on a daily basis. Risk management, according to him,  should be in the front burner, especially now that the nation is in recession, noting that comfort zone, has become uncomfortable, dollar boom disappeared and national wealth eroded, stressing that the time to secure the future is now.

According to him, “to secure the future, it is time to build. This will take some time, much longer than the time for destruction. Rebuilding and sowing must not be haphazardly, anyhow or in any manner; otherwise, the building will eventually collapse, the seed will not germinate.”

Speaking in an interview with Business 247 News Online, the President, Institute of Chartered Accountants of Nigeria (ICAN), Mr. Titus Soetan, warned political office holders to shun corruption to put the nation’s economy back on the path of growth.

He urged people entrusted with managing institutions, either in public or private sectors across the country to be professional and imbibe ethics in the dictates of their duties.

Soetan, who said he was happy about the plan of the Federal Government to borrow 29.96 billion dollars external loans to execute key projects in the country to exit recession, stated that if the fund is used for the purpose meant for, it will have a positive multiplier effect on the economy.

According to him, “Government must be prudent in spending, builds infrastructure, constructs rail and road projects so that people can be engaged, because as it stands, there is massive unemployment and people have no money to spend.”

But if government can engage in developmental projects, he believes this will have a trickle down effects, as it will engage more unemployed Nigerians, thereby, improving their livelihood as well as develop the economy.

Earlier, the Chairman, Nigerian Insurers Association (NIA), Mr. Eddie Efekoha, said 2016 is a tough year for insurers, as they had to spend more on claims than in previous years.

To survive a tough economy like ours, he noted that the insurance industry may need to review the price of some policies taking into consideration the inflationary trend.

An Industrialist, Investment Expert and Chairman, African Centre for Business Development, Strategy and Innovation, (ACBDSI), Mazi Sam Ohuabunwa, on his part, said the surest way Nigeria could come out of her current economic quagmire was to ramp up agricultural productivity  through harmonisation of the several programmes and initiatives of the out gone and present administrations.

He said the lowest hanging opportunity for Nigeria to increase productivity and reduce the rate of unemployment was to increase agricultural productivity through a harmonisation of the several programmes and initiatives started by the Agricultural Transformation Agenda of the former Minister of Agriculture, Akinwumi Adesina and the Green Alternative Roadmap of the incumbent Minister, Audu Ogbe. He highlighted promotion of commercial agriculture and the development of the value chain as well as linkage to manufacturing and all forms of value addition as solution to the problem.

He also advised that the directive by the Central Bank of Nigeria (CBN) to commercial banks that 60 percent of forex should be preferentially allocated to the manufacturing sector should be enforced, even as he urged the government to create an enabling environment that will make Nigeria a preferred investment destination.

Meanwhile, the Registrar/CEO, Institute of Credit Administration (ICA), Prof. Chris Onalo, has urged the Federal Government to lend funding support to Small and Medium scale Enterprises (SMEs) in the country, stressing that this becomes inevitable in order to drive economic growth, especially during the current economic quagmire.

The Chairman/Managing Director of Mobil Oil Plc, Dr. Adetunji Oyebanji, in the same vein, said SMEs remain the engine of growth of any economy and as such, needs to be encouraged to thrive, especially in a troubled economy like Nigeria.

He stressed that the current economic downturn or the post-effect of economic recession has made it impossible for SMEs to provide collaterals to serve as security for loans. The necessary support from government will help SMEs to thrive, he said.