How to fix Nigeria’s supply chain challenges

The recent news about Shoprite's planned divestment from Nigeria has sparked discussions surrounding the country's business environment. The exit of South African retailer Woolworths from Nigeria also highlighted duties, high rental costs, and supply chain challenges as significant factors contributing to the decision. In a recent interview on CNBC Africa, Akintunde Sawyerr, the Executive Secretary of the Agricultural Fresh Produce Growers and Exporters Association of Nigeria, shed light on the complexities of Nigeria's supply chain and the impacts on businesses. Supply chains play a critical role in the functioning of any economy. They serve as the backbone of businesses, ensuring the smooth flow of goods and services from producers to consumers. However, in a country like Nigeria, with its unique set of challenges, supply chains can face various obstacles that hinder efficiency and profitability. Sawyerr emphasized the importance of both local and global supply chains for businesses like Shoprite. Any disruption in these supply chains can have severe consequences and jeopardize a company's operations. The challenges faced by companies operating in Nigeria extend beyond just logistics; they also deal with regulatory hurdles, infrastructure deficiencies, and economic uncertainties. Nigeria's business landscape presents a mixed bag of opportunities and challenges. While the country boasts a vast consumer market and abundant natural resources, businesses often struggle with issues such as corruption, inadequate transportation networks, and power shortages. These factors contribute to the complexities of Nigeria's supply chain ecosystem and require innovative solutions to address them. In the interview, Sawyerr highlighted the impact of the global pandemic on supply chains. The COVID-19 crisis highlighted the vulnerabilities of global supply chains and exposed the risks associated with overreliance on international markets. Small businesses and large organizations alike faced disruptions that tested their resilience and ability to adapt to rapidly changing circumstances. As Nigeria moves towards attracting more foreign investments and fostering a conducive business environment, addressing supply chain challenges will be paramount. Improving infrastructure, streamlining regulatory processes, and enhancing the efficiency of logistics networks are essential steps towards building a robust supply chain ecosystem in the country. The planned divestment of Shoprite and Woolworths serves as a wake-up call for policymakers and industry stakeholders to work towards creating a more favorable environment for businesses in Nigeria. By tackling supply chain challenges head-on and implementing sustainable solutions, Nigeria can enhance its competitiveness on the global stage and attract more investments into the country's economy.