WHY MOST NIGERIAN BUSINESSES CANNOT BECOME CONGLOMERATES – DR CHIJIOKE EKECHUKWU

WHY MOST NIGERIAN BUSINESSES CANNOT BECOME CONGLOMERATES – DR CHIJIOKE EKECHUKWU

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.

NAN reports that a conglomerate is a combination of two or more corporations that are engaged in entirely different businesses under one corporate group. (NAN)

Facebook Comments

About author

Nigerians in South Africa
Nigerians in South Africa 1999 posts

We are about democracy, human rights, public opinion, political behavior, civil rights and policy aimed at improving the human condition, with a focus on African countries.

You might also like

Business 0 Comments

Abuja — The European Union (EU) has withdrawn financial support for Nigeria, saying the country has enough resources to meet her developmental needs. The Head of EU delegation to Nigeria

Health 0 Comments

INSIDE THE PIETERMARITZBURG MORTUARY WHERE WORKERS ARE ON A GO-SLOW

Workers in the Fort Napier Medico Legal Mortuary in Pietermaritzburg are on a go-slow, demanding an increase in wages and better working conditions. They say that corpses are piling up,

ARRESTED FOR LOOKING FOREIGN: SA SISTERS’ HORROR ORDEAL AFTER JOBURG CBD RAID

Johannesburg – Two South African women, who were wrongly arrested during counterfeit raids on suspicion they were foreign nationals, on Wednesday recounted the horrors they faced for five days while

0 Comments

No Comments Yet!

You can be first to comment this post!

Leave a Reply