By Abdul-Kadir Abdullah
Nigeria, a nation brimming with potential, just like other countries of the world has long grappled with economic challenges that have hindered its progress. While traditional economic models have shown their limitations, a new paradigm is emerging which is Inclusive Business (IB).
This innovative approach, which integrates low-income individuals into the value chain of businesses, offers a promising path towards sustainable economic growth and social development. The low income individuals are at Base of the Pyramid (BoP).
According to the World Bank, the Base of the Pyramid (BoP) population in Nigeria is about 90 million people (40% Nigerians) living with less than 8-dollar per day.
As a win-win proposition for Nigeria, inclusive businesses, or IBs, are enterprises that intentionally involve the Base of the Pyramid (BoP) population in their operations. They provide goods, services and livelihoods on a commercially viable basis, either at scale or scalable to people at BoP, making them part of the value chain of company's core business as either suppliers, distributors, retailers, employees or customers. By doing so, they not only create economic opportunities for marginalized communities but also unlock significant market potential. IBs are the private sector contributors to the Sustainable Development Goals (SDGs). Without them and without the BoP, we will not achieve Nigeria's National Development Goals (NDG).
This mutually beneficial approach benefits both businesses and society in many ways.
Firstly, economic Growth. By tapping into the vast consumer market at the BoP, businesses can expand their reach and increase revenue.
Secondly, poverty reduction. Inclusive businesses generate employment opportunities, improve livelihoods, and empower marginalized communities.
Thirdly, social impact. By addressing social and environmental issues, IBs contribute to sustainable development goals. By adopting and implementing an IB framework, Nigeria can unlock the potential of the private sector to drive sustainable development, lift millions out of poverty and create a more equitable economy.
To fully realize the potential of inclusive business, a concerted effort is needed from all stakeholders in several ways.
Government should create an enabling environment for businesses, including supportive policies, regulations, and incentives. Also, to invest in infrastructure and education to enhance the capabilities of the BoP population. It is also critical to foster partnerships between the public and private sectors to promote inclusive business initiatives.
On the part of the private sector, some suggestions could be helpful. It will be good to adopt innovative business models that integrate the BoP into their value chains. And to collaborate with social enterprises and NGOs to develop sustainable solutions. It is also critical to invest in capacity building and skills development programs for the BoP population.
On the part of the Civil Society Organizations (CSOs), it is critical to advocate for policies that support inclusive business. Also, to provide technical assistance and capacity building to businesses and communities. It is also important to raise awareness about the benefits of inclusive business.
In terms of awareness creation and capacity building for stakeholders, the Nigerian Investment Promotion Commission (NIPC) is already taking the lead. The just concluded workshop organized by NIPC in partnership with GIZ and the Investment Climate Reform (ICR) Facility is commendable. The event which was held at the NIPC headquarters, Abuja was Facilitated by Arianne Martín Rodríguez, an International Consultant for the Investment Climate Facility (ICR) and Sophia Imite-Uka Co-trainer and Local Consultant for ICR.
Nigeria, by embracing inclusive business can unlock its full economic potential and create a more equitable society. It's time to move beyond traditional models and embrace a future where business and social impact go hand-in-hand. Let us work together to build a Nigeria where prosperity is shared by all.
