Adewumi-Zer Adeolu is a renowned Afro-optimist and global strategist, championing African excellence for the last twenty-five years. As the founder of ZER Consulting Africa, and internationally best-selling author of Afro-Optimism Unleashed, she empowers leaders and businesses across the continent to achieve sustainable growth and impact. Having spearheaded strategic growth initiatives both globally and across Africa, before leading a major financial institution in Nigeria, Adeolu’s strategic insights and unwavering commitment to excellence have earned her numerous accolades. In this interview with KENNETH ATHEKAME, she spoke on the role of the informal economy in Nigeria, and how it can be integrated into the formal sector, and the economic disparities within Nigeria. Excerpts:
How would you describe the current state of the Nigerian economy; key macroeconomic indicators like GDP growth, inflation, and unemployment. And what do you think are the primary drivers, and challenges?
Nigeria, like many other African nations, faces its share of economic complexities. While specific macroeconomic indicators fluctuate, my Afro-optimistic lens focuses on the underlying resilience and potential for growth, acknowledging the challenges, while actively seeking and building upon our strengths.
What are the key risks and opportunities that you see for the Nigerian economy in the next three to -five years?
The next few years present a dynamic landscape. Risks include global economic volatility and internal structural issues. However, the opportunities are vast. Nigeria’s youthful population, her entrepreneurial spirit, and her increasing adoption of technology are significant drivers for growth. By strategically addressing challenges like infrastructure deficits and the ease of doing business, Nigeria can unlock tremendous opportunities. For Nigerian SMEs, the growing demand for locally produced goods and services presents a significant opportunity for expansion and import substitution.
How can Nigeria leverage its natural resources to diversify its economy and reduce its dependence on oil?
Diversification is crucial. Nigeria can leverage its natural resources by investing in value-added processing and manufacturing. Agriculture, with its potential for large-scale production and export, is a key area. Furthermore, focusing on the development of a robust services sector, driven by technology and innovation, will help reduce reliance on oil revenues.
What strategies would you recommend to improve the ease of doing business in Nigeria and attract foreign direct investment?
Improving the ease of doing business requires a multi-pronged approach. Simplifying regulations, ensuring policy consistency, and strengthening institutions are essential. We also need to prioritize governance, transparency and the rule of law to build investor confidence. Furthermore, investing in infrastructure, particularly power and transportation, will significantly enhance the business environment. For instance, ongoing efforts to streamline business registration processes in Lagos State have been a positive step, while many SMEs are also exploring renewable energy solutions to mitigate the challenges of inconsistent power supply.
There are regional economic disparities within Nigeria. How can a national strategy address these inequalities?
Regional disparities are a reality. A national strategy must focus on inclusive growth, ensuring that development reaches All parts of the country. This involves targeted investments in infrastructure, education, and healthcare in underserved regions. Promoting inter-regional trade and collaboration can also help bridge these gaps. Addressing the specific security challenges in certain regions of Nigeria is also crucial for fostering economic development and reducing inequalities.
How can economic development initiatives be tailored to the specific needs and challenges of different regions in Nigeria?
Tailoring initiatives to specific regional needs is vital for effectiveness. Understanding the unique economic strengths and challenges of each region will allow for the development of targeted interventions. For example, agricultural development programs in one region might differ significantly from those focused on promoting tourism or technology hubs in another. For example, initiatives focused on promoting the tech sector in Lagos and the agricultural sector in the Northern states demonstrate a tailored approach to regional economic development.
What is the role of the informal economy in Nigeria, and how can it be integrated into the formal sector?
With the informal economy at almost 60%, it plays a significant role in Nigeria. Integrating it into the formal sector requires creating an enabling environment that incentivizes formalization. This includes even further simplifying registration processes, providing access to finance and training (I can personally attest to the complexity of our banking processes!), and extending social protection benefits to informal workers.
What strategies can be implemented to increase financial inclusion and expand access to credit for small and medium-sized enterprises (SMEs) in Nigeria?
Increasing financial inclusion is critical for SME growth. Strategies include leveraging mobile technology and digital financial services to reach the unbanked. Expanding access to credit requires innovative solutions like credit guarantee schemes and tailored financial products that meet the specific needs of SMEs. However, securing funding remains a significant hurdle for many Nigerian SMEs. Exploring local angel investor networks, participating in government-backed SME support programs, and leveraging digital lending platforms could offer viable pathways to accessing much-needed capital.
How can Nigerian businesses leverage innovation and technology to overcome economic challenges and achieve sustainable growth?
Innovation and technology, particularly generative AI, are game-changers. Nigerian businesses can leverage them to improve efficiency, reach new markets, and develop innovative solutions to local challenges. Embracing the digital revolution is a key principle for building a global mindset. Investing in digital infrastructure and fostering a culture of innovation are essential steps. The increasing adoption of mobile payment systems and e-commerce platforms by Nigerian SMEs is a testament to the power of technology in overcoming economic challenges.
How do you adapt to the rapidly changing economic landscape in Nigeria and remain agile in your strategic recommendations?Adapting to change is crucial. This requires continuous learning, staying informed about global and local trends, and maintaining a flexible approach to strategy. Encouraging a culture of experimentation and regularly seeking customer feedback are also vital for agility. The dynamic nature of government policies and regulations in Nigeria necessitates a high degree of adaptability for businesses.
How do you see Nigeria’s role in the broader African economic landscape?One in 5 Africans is Nigerian. Therefore, Nigeria plays a pivotal role in the African economic landscape. And as one of the continent’s largest economies, its growth and development have a significant impact on the region. Nigeria must not only foster, but actively drive regional trade, collaborate on infrastructure projects, and demonstrate best practices in policy and governance.
How can Nigeria contribute to building ‘African excellence’ for the global stage?Building African excellence requires a collective effort. Nigeria can contribute by investing in education and skills development to nurture talent. Supporting innovation and entrepreneurship, and promoting ethical business practices are also crucial. Continuing to showcase our unique cultural heritage and creativity on the global stage is another important aspect. With films like Citation, Lionheart, and most recently, Iwájú, global recognition of Nigeria’s vibrant entertainment industry (Nollywood) exemplifies the potential for African excellence on the global stage.
What are the opportunities for cross-border collaboration and trade within Africa, particularly involving Nigeria?The opportunities for cross-border collaboration and trade within Africa are immense. Initiatives like the African Continental Free Trade Area (AfCFTA) are creating a single market, which will boost intra-African trade. Nigeria can play a leading role by actively participating in and promoting these collaborations, fostering economic integration and growth across the continent. With its large market size and diverse industrial base, Nigeria stands to be a major beneficiary of increased intra-African trade under the AfCFTA.
How do you align your personal values and professional goals with a purpose-driven consulting firm focused on African development?My personal values and professional goals are deeply aligned with a focus on African development. As an Afro-optimist, I sincerely believe in the continent’s potential for greatness. My work with ZER Consulting Africa is driven by a passion to empower African leaders and businesses to achieve sustainable growth and impact.
How can consulting contribute to addressing social and economic challenges in Nigeria and across Africa?Consulting plays a vital role by providing expert insights, strategic guidance, and practical solutions to complex social and economic challenges. By working with governments, businesses, and civil society organizations, consultants can help develop and implement effective strategies for poverty reduction, job creation, and sustainable development. And now having personally witnessed the dynamism and resilience of the Nigerian entrepreneurial spirit firsthand over the last five years, I am particularly motivated to contribute to its further development.
What does building African excellence for the global stage mean to you?Building African excellence for the global stage means showcasing the best of African talent, innovation, and creativity to the world. It’s about creating businesses and institutions that are not only successful on the continent but are also competitive and respected globally. It’s about demonstrating the unique strengths and capabilities that Africa has to offer. Nigeria, with her rich cultural heritage and entrepreneurial dynamism, is poised to be a leading force in shaping this global perception of African excellence.
How do you demonstrate cultural sensitivity and understanding of the Nigerian context in your consulting work?
Cultural sensitivity and a deep understanding of the local context are paramount in my consulting work. Having lived and worked across Africa, including Nigeria, for almost a decade, I have gained firsthand experience and insights into the nuances of the business environment and cultural landscape. This allows me to tailor my globally-relevant recommendations to the specific realities of the Nigerian context.
How do you incorporate local knowledge and perspectives into your strategic recommendations?
Incorporating local knowledge and perspectives is fundamental to developing effective strategies. This involves actively engaging with local stakeholders, listening to their insights, and understanding their unique challenges and opportunities. By blending global best practices with local realities, we can create solutions that are both innovative and relevant. That is why building strong partnerships with local experts and businesses is crucial for gaining valuable insights and ensuring the successful implementation of strategies.
How do you motivate and lead teams to achieve strategic goals in challenging economic environments?
Motivating and leading teams in challenging economic environments requires empathy, clear communication, and a focus on shared goals, even while striving to deliver excellence. I aim to foster a sense of purpose and resilience, while empowering my team members to contribute their best. Even during tough times, maintaining an Afro-optimistic outlook can be incredibly powerful.
May we know the point at which you had to navigate a complex stakeholder environment to achieve a desired outcome?
I recall a situation where I was leading a global change agenda for a Germany-based multinational. Initially, I was the only person on the team, and I had to influence CEOs and global leaders across various regions and functions to execute our vision. It was a complex environment with multiple stakeholders holding different priorities. To navigate this, I built a small, diverse, and energetic team. Each member brought a unique perspective and challenged my assumptions, which helped refine our approach. Instead of simply barking orders from the head office, we fostered collaboration and focused on clear communication to ensure everyone was aligned and motivated to achieve the desired outcome. This experience taught me the importance of building trust, fostering open dialogue, and empowering a diverse team to navigate complex stakeholder environments successfully.
Just as navigating complex global environments requires collaboration and clear vision, ZER Consulting Africa is dedicated to providing Nigerian SMEs with the expertise and strategic guidance needed to navigate their own challenges and achieve sustainable growth on both a local and global scale.
