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Early in May, I attended the 2016 GTBank Food and Drink Fair, the bank's first annual food exhibition and sales event that showcased a variety of food, drinks and culinary experts. A mere observer might have seen this exhibition as a Corporate Social Responsibility (CSR) event. However, as a seasoned ex-banker I could see beyond the simmering barbeques and exotic cocktails. I spotted a well-crafted ploy by a major Nigerian bank to focus on the SMEs ecosystem at a defining period in the economy of Nigeria.  
    
The constant mantra about economic diversification is frankly beginning to bore me. Clichés are often used to express our helplessness or, in many cases, ineptitude to articulate pragmatic solutions to our domestic problems. Surprisingly, everyone has become an expert in diversification, although I wonder the percentage of these diversification aficionados that actually patronises Made in Nigeria products. It is one thing to talk about the benefits of diversification; it is another thing entirely to show patriotism by cutting our profligate appetite for foreign goods and procuring homegrown substitutes.   

I have a few simple suggestions on how we can support producers of Made in Nigeria goods and services. I am of the opinion that the time has come for us to support those brave hearted entrepreneurs who have invested in the real sectors of the Nigerian economy when they could have chosen rent-seeking enterprises – a practice which has perpetuated the mono-product economy that exposed Nigeria to the current global oil price slump.

Stop the lip-service: Action speaks louder than words. Take the extra effort to find a local substitute to your imported product. But do not stop there; share feedback with the local producer to both encourage the company and enable it improve the quality of its product.

You could even mentor such key decision makers in companies from behind the scenes without necessarily being on its board. Likewise, when you find a good product, share your feedback within your network both offline and on social media. We should promote all Nigerian brands even when we do not have a contractual obligation to do so as brand ambassadors.

Even as corporate citizens, we can promote local brands by patronising them. For instance, hotels should patronise Made in Nigeria premium beverages, honey, etc, even if it means supplementing their inventories and furniture with the imported ones they have. Before we know it, there will be an increased demand on households and corporates to import substitution and product switching. The race to the bottom may have begun.

Packaging: A key deficit in the marketing of a large number of products and services in Nigeria is often sub-standard packaging. Companies must realise that any additional packaging cost can never be lost because it goes into brand enhancement. This will improve the customer experience and ultimately attract more customers. This is also an opportunity for investment in the packaging industry in Nigeria.

Quality Assurance: To buy Made in Nigeria, there has to be an agreed level of standards and assurance in the quality of goods and services. This is one area that the local players need to raise their game. Regulators also have an important role to play here to ensure standards are maintained in every sector of the economy. The objective of course is to promote Made in Nigeria goods and services.

Distribution: This is one of the more difficult and expensive aspects to market, particularly for new products and SMEs. Poor infrastructure in Nigeria makes logistics, especially in rural areas a challenging activity for businesses who have to transport raw materials or goods to the market. Companies such as Jumia and Konga who have been able to backwardly integrate logistics operations into their businesses for efficiency can partner to offer logistic solutions to other businesses at a profit. Our distribution network needs to be better structured to bring down the cost of distribution and the lead time to reach the market. We may also need a local consolidation of some existing logistics and haulage companies. A better structured distribution network will improve intermodal connections for the informal markets which account for a larger percentage of trade in Nigeria. It will also create and generate employment opportunities across the network.

Access to Finance: Despite the best efforts of the Central Bank of Nigeria to incentivise lending to the real sector, I am not sure a lot of Nigerian banks have the capacity or the inclination to provide funding solutions that are required in the real sector. As a result, inadequate funding will continue to be one of the biggest challenges for SMEs and even large scale companies who need working capital. The recent launch of the National Collateral Registry to improve access to finance for SMEs using movable assets as security is definitely a major development from the standpoint of policy. But it remains to be seen if this policy will encourage banks to increase its loan portfolio to small businesses. Foreign exchange will also continue to be a challenge in the short term but as the derivatives market deepen, it is expected that demand concentration that is heavy in the spot market will move further right of the yield curve.

Based on some of the points discussed earlier, SMEs also stand of a better chance of accessing finance if they improve the bankability of their businesses through brand enhancements and quality assurance.

Export: As more products and services leave the shores of Nigeria, the Made in Nigeria brand will also evolve. As a nation, we must look at the competitive edge in our exports and also employ sound protectionist measures like “Champagne” has achieved for the production of sparkling wine from a particular region of France, by not allowing other countries to use the names of our local brands. The Return on Investment (ROI) this will create will be exceptional. We must also build better and greater emotional connection with Nigerian brands; design thinking has demonstrated that consumers identify with brands and products that they emotionally connect with.

Innovation-led Clusters: We can encourage synergies amongst producers of certain goods by creating clusters. Such efforts that have been initiated by the Federal Ministry of Agriculture and Rural Development, such as the rice and cassava clusters in localised jurisdictions, must be strengthened and well-publicised so that it is attractive for existing actors and players to benefit from distribution networks, warehousing, research and development, among other benefits.

The above are simple pragmatic ways to support our homegrown brands, particularly at a time like this when the country's foreign exchange earnings have dropped due to the fall in global oil prices. This leads me to my final point: we must be inspired by Made in Nigeria. Our brands must evoke the pride that we need to have when we produce them and in terms of patronage of them. Ultimately, Made in Nigeria is what will reduce the harsh reality of a recession on our household and corporate budgets while reflating the economy through improved consumer spending.

Ani C. Bassey-Eyo is CEO of LANI Group and co-founder of Axiom Learning Solutions and Sehai Foods (a local producer of premium Nigerian Honey and food products). He is a chartered accountant and ex international banker cum a serial grassroots' entrepreneur. He can be followed on twitter at ACB_NG and can be reached at i@acb.ng