Seven PWC imperatives strategy model for economic and business growth for 2025

Nigeria’s business climate remains challenging as entrepreneurs contend with rising costs, economic uncertainty, and intense competition across industries. Although prices have shown some stability in recent months, operators say sustaining daily operations still feels like an uphill task.

Analysts, however, highlight that the environment also presents growth opportunities. They note that businesses willing to innovate, embrace resilience, and adopt forward-looking strategies can move beyond short-term survival. By positioning themselves as market leaders, such firms are better placed to secure long-term sustainability and build strength despite current economic headwinds.

The PwC Nigeria’s 2025 Budget and Economic Outlook pointed out the seven PWC imperatives strategy model for economic and business growth for 2025

Reinvent Your Business Model
Your business model is the fundamental way you create, deliver, and capture value. In today’s Nigeria, with fluctuating exchange rates and rising operational costs, clinging to an old model is a recipe for failure. To reinvent your business model means fundamentally rethinking how your business makes money in a way that is robust enough to withstand economic shocks. It requires a shift towards agility, becoming customer-centric, and creating undeniable value.

This isn’t about small tweaks; it’s about bold changes. For a business heavily reliant on imports, reinvention could mean pivoting to locally sourced raw materials, which insulates you from forex instability and aligns with government policies promoting local content. Consider shifting from a one-off sales model to a subscription-based service for predictable revenue. For example, a food processing company could offer a monthly subscription box for its products.

The goal is to build a business engine that’s less dependent on the unpredictable economic climate and more aligned with the direct, evolving needs of your Nigerian customers. This creates a powerful connection where your business becomes indispensable to them.

Reignite Your Market Play
Simply having a good product is no longer enough. You must reignite your market play by developing a deep, almost obsessive, understanding of your customers and the market’s hidden opportunities. Customer insight is your most powerful weapon in Nigeria’s competitive landscape. This means knowing more than just their age and location; it means understanding their anxieties about the economy, their purchasing habits on platforms like Jumia or Konga, and the social media influencers they trust.

Revitalising your go-to-market strategy involves using these insights to find untapped growth areas. Instead of competing in the saturated Lagos market, perhaps data shows a rising middle class in cities like Port Harcourt or Kano that is underserved. Reigniting your play means leveraging digital channels not just for advertising but for building communities. Use WhatsApp channels for direct customer engagement and feedback, or run targeted campaigns on Instagram to reach the youth demographic. By deeply understanding the customer and market, you can identify and bypass competitive bottlenecks, carving out a unique and profitable space for your brand.

Rethink Costs Through Core Capabilities
Cost management in Nigeria for 2025 isn’t about blindly slashing budgets. It’s about a strategic rethink of your costs by focusing on what your business does best—your core capabilities. You must differentiate between “bad costs” (non-value-adding expenses) and “good costs” (investments that strengthen your competitive advantage). For most Nigerian businesses, major cost drains are diesel for generators and complex logistics.

Instead of cutting your marketing budget, which generates revenue, you should strategically invest in your core capabilities to reduce operational costs. For a manufacturing company, investing in a solar power installation or an inverter system isn’t just an expense; it’s a strategic investment in the core capability of production. It directly tackles the high cost of diesel and ensures uninterrupted operations. Similarly, a distribution company could invest in route optimisation software to cut down on fuel consumption and delivery times. By eliminating expenses that don’t add value and doubling down on investments that make you stronger, you build a leaner, more efficient, and more profitable operation.

Reimagine Your Tech, Digital, and AI Play
Technology is the ultimate enabler for navigating Nigeria’s complexities. To reimagine your tech, digital, and AI play means seeing technology not as a support function but as the core of your business strategy. It’s about using digital tools and Artificial Intelligence (AI) to solve uniquely Nigerian problems, enhance customer experiences, and drive radical efficiency.

This goes far beyond just having a social media presence. Imagine a retail business using AI-powered chatbots on WhatsApp to handle customer inquiries and process orders 24/7, freeing up human staff for more complex tasks. A fintech company can use AI to analyse transaction patterns and predict fraud with incredible accuracy, building trust with its users. For a logistics firm, AI can optimise delivery routes in real-time to navigate the unpredictable traffic of cities like Lagos. By harnessing these advanced tools, you can automate processes, gain deeper insights from your data, and offer a level of service that sets you far apart from the competition.

Redefine Your Funding and Capital Strategy
The days of relying solely on traditional bank loans with high interest rates are fading. You must redefine your funding and capital strategy to ensure your business has the financial resilience to grow. This involves exploring a wider, more innovative range of financing options and being smarter about how you allocate the capital you have.

Look beyond commercial banks and consider alternatives. The Nigerian startup scene has shown the power of venture capital and angel investors. Prepare a compelling business plan and pitch to these investors who often provide not just cash but also valuable mentorship and networks. Government-backed institutions like the Bank of Industry (BOI) offer intervention funds and loans with more favourable terms to support local production.

Crowdfunding platforms are also becoming a viable option for raising capital for specific projects. The key is to diversify your funding sources to reduce risk and optimise your capital structure for long-term, sustainable growth.

Re-evaluate Your Talent Strategy
In the face of the “Japa” syndrome, where skilled professionals are emigrating in large numbers, a reactive approach to hiring is no longer viable. You need to proactively re-evaluate your talent strategy to attract, develop, and, most importantly, retain the top talent needed to drive your business forward. Your workforce is your most critical asset.

This means creating a compelling value proposition for your employees that goes beyond salary. Foster a culture of innovation and continuous learning by investing in upskilling programs, especially in high-demand areas like data science, digital marketing, and software development.

Implement flexible and remote work policies where possible, as this is a major draw for the modern Nigerian professional. Focus on building clear career paths and recognising high performance. By creating an environment where talented individuals feel valued and see a future for themselves, you can build a loyal, highly skilled team that becomes a significant competitive advantage.

Reassess Your Stakeholder Relationships
Finally, your business does not operate in a vacuum. Long-term success in Nigeria requires you to reassess and strengthen your stakeholder relationships. These stakeholders include not just your investors and customers, but also government regulators (like the FIRS and CBN), your host communities, and the ever-watchful audience on social media.

Building trust and transparency is paramount. This means moving from a reactive to a proactive compliance mindset, ensuring you are up-to-date with tax regulations and CBN policies to avoid disruptive penalties. Foster genuine goodwill with your local communities through impactful corporate social responsibility (CSR) initiatives.

Most importantly, manage your online reputation vigilantly. Engage transparently with your audience on social media, address complaints swiftly, and build a community of brand advocates. By cultivating strong, collaborative relationships with all stakeholders, you create a stable and supportive ecosystem that enables your business to weather storms and seize opportunities.