The creator of a public policy advice firm, Mr. Patrick Okigbo, is an advocate for developing a framework to support the Inclusive Business (IB) strategy in order to combat Poverty in Nigeria. He clarified during an Abuja stakeholders roundtable that IBs are companies that work with low-income individuals to offer essential goods and services in ways that are both profitable and sustainable. He suggested establishing an all-inclusive system of business certification, keeping an eye on IBs, and setting aside a portion of the government’s procurement budget to assist companies that give the underprivileged priority.
More so, he frighteningly high rates of poverty in Nigeria were brought up by Mr. Markus Wauschkuhn of the German Cooperation in Nigeria (GIZ), who also stressed the potential of the IB strategy to spur private Investment to address these problems. He pointed out that, in 2020, 63% of Nigerians were considered multidimensionally poor, meaning they did not have access to essential amenities, and that, by 2024, this situation probably still exists. In order to reduce poverty and provide access to necessary services, he advocated for the implementation and expansion of IB models.
This tactic will combat social inequality, unemployment, and poverty.
Furthermore, the Nigeria Investment Promotion Commission’s Ms. Aisha Rimi stressed the significance of educating the public about the advantages of the IB strategy in order to promote economic growth. She emphasized the necessity of taking concrete steps to expand IB models, as shown by Abayomi Salami. The Central Bank of Nigeria (CBN), represented by Mr. Blaise Ijebor, stated the bank’s dedication to financial inclusion by way of programs like ‘SabiMONI,’ which strives to improve financial literacy. Yeshua Russell talked about the use of IB tactics by the Kaduna State Investment Promotion Agency (KADIPA) to combat social inequality, unemployment, and poverty.
Commercial businesses that intentionally integrate low-income populations into their value chain are referred to as inclusive businesses (IBs). The impoverished are given access to basic commodities and services and economic opportunities by these firms, which integrate them as suppliers, distributors, workers, or customers in a way that benefits the company and the community. Nigeria, the most populous nation in Africa, has severe poverty, hence the main goal is to create viable, sustainable business models while also tackling social issues.
KADIPA has taken the lead in putting IB methods into practice.
According to data from the Nigerian Bureau of Statistics, over 130 million people, or over 63% of the country’s population, lived in multidimensional poverty in 2020 and lacked access to essential services including clean water, healthcare, and education. The nation is rich in natural resources, but for a significant portion of its population, the riches has not translated into higher living conditions. Government social investment programs, international aid, and non-governmental initiatives have all been used in the fight against poverty, although these efforts have frequently been dispersed and inadequately organized.
Nigeria’s poverty rate did not significantly decrease by 2023; according to recent figures, almost 70% of the country’s population still lives in poverty. By exacerbating pre-existing vulnerabilities, the COVID-19 Epidemic drove millions more people into extreme poverty. The available data emphasizes how urgently novel tactics, like as IB, are needed to supplement established methods for reducing poverty. In Nigeria, the Kaduna State Investment Promotion Agency (KADIPA) has taken the lead in putting IB methods into practice. Promoting agro-processing companies that include smallholder farmers in their supply chains is one noteworthy initiative.
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Additionally, this program has boosted regional Economic Growth in addition to giving farmers a reliable source of income and market access. Furthermore, KADIPA’s initiatives to support female entrepreneurs have improved women’s economic involvement and helped lessen gender disparities. In order to successfully execute IB models in Nigeria, collaboration amongst multiple sectors is necessary. A system of accreditation and incentives for companies that provide priority to the underprivileged should be established by the government as part of an institutional structure to promote IB. Partnerships and financial incentives should be used to encourage Private Sector investment. Campaigns for public awareness are crucial to showcasing the advantages of IB and promoting greater participation.