Key points
- Presidency says economic reforms are restoring confidence and creating opportunities for Nigerian businesses.
- Presidential aide points to improved foreign exchange conditions as one factor supporting entrepreneurs.
- Makib Estilo says better exchange rates have improved its ability to source imported products.
Main story
The Presidency says Nigeria’s economic reforms are beginning to improve business confidence and create better conditions for entrepreneurs to expand their operations.
Dr Nafia Abdullahi, Technical Assistant on Regional Development Programmes in the Office of the Vice President, made the assessment on Sunday in Abuja during the inauguration of Makib Estilo, a business outlet established by Fatima Abdullahi-Bono.
Abdullahi said the expansion of the enterprise from a small shop into a diversified business illustrated the opportunities emerging from the Federal Government’s economic policies under the Renewed Hope Agenda.
She urged critics of the administration to assess the reforms by engaging directly with businesses and citizens rather than relying on second-hand accounts of their impact.
According to her, the adjustment to the new economic environment has been difficult for many Nigerians, but businesses are gradually adapting and beginning to recognise opportunities created by the changes.
She identified developments in the foreign exchange market as particularly important to businesses that depend on imported goods.
Abdullahi recalled that the sharp depreciation of the naira had previously increased import costs and made it difficult for entrepreneurs to maintain or expand their businesses.
She said the more recent improvement in exchange-rate conditions had helped ease some of those pressures and contributed to greater stability for businesses.
Abdullahi used Makib Estilo as an example, noting that the business had grown over seven years from Makib Apparels into a diversified outlet offering interior products, kitchenware, fabrics and other household and lifestyle products.
She said the adoption of the Makib Estilo identity was intended to bring the company’s expanding product lines and outlets under one brand.
The entrepreneur, Abdullahi-Bono, also attributed part of the company’s growth to improved foreign exchange conditions, noting that most of its products were imported.
She said the cost of sourcing goods had become more manageable as the exchange rate improved, allowing the business to operate more effectively and serve its customers.
Earlier, the Minister of Women Affairs, Hajiya Imaan Sulaiman-Ibrahim, said businesses were recording growth under the Tinubu administration.
She said the Federal Government was supporting micro, small and medium enterprises through intervention funds, single-digit loans and initiatives aimed at helping entrepreneurs formalise their businesses at no cost.
Abdullahi-Bono said Makib Estilo planned to expand its operations, attract investors and create additional business opportunities.
She expressed the ambition to establish outlets across Nigeria and eventually expand into international markets.
The issues
The impact of Nigeria’s economic reforms remains closely tied to how businesses experience changes in exchange rates, financing costs and operating conditions.
For import-dependent enterprises such as Makib Estilo, movements in the foreign exchange market can directly affect the cost of inventory and the ability to maintain stable operations.
What’s being said
“They should judge us with clean eyes. They should open their eyes, interact and come to us and ask questions instead of using hearsay.” — Dr Nafia Abdullahi, Technical Assistant on Regional Development Programmes
“Before, we had been dealing with a higher dollar rate, but with the coming of the present administration everything is going down.” — Fatima Abdullahi-Bono, Founder, Makib Estilo
What’s next
Makib Estilo plans to expand its operations, attract investors and create additional opportunities for people interested in starting businesses.
Bottom line
The Presidency says improving economic conditions are giving businesses greater room to grow, while Makib Estilo’s experience suggests that exchange-rate movements remain a significant factor in determining how import-dependent Nigerian enterprises operate.
