Entrepreneurialism - The Answer to Nigerian Youth Unrest

There is no denying the fact that Nigeria has had more than its fair share of national misfortunes. The decades following independence from British colonial rule in 1960 saw this strategically located sub-Saharan nation plunge into political uncertainty and economic disintegration. Non-inclusive policies and a historic overdependence on oil exports left the vast majority of Nigerian's in abject poverty and appalling human development conditions. The return of democracy in 1999 finally brought with it the promise of positive change, as Abuja announced ambitious plans to reverse its downward spiral in global rankings and effect radical transformation in the lives of its people. For Nigeria, the proverbial light at the end of the tunnel came in the form of rapid entrepreneurial development, which former president O Obsanjo banked on to take his country to the top 20 world economies by 2020. The thrust of this vision has been carried forward by current president UM Yar'Adua, as Nigeria continues on the road to economic repair and sustainable growth.

Of the many pressing challenges facing Nigeria today, youth unrest and violent crime are arguably the most distressing. Even though credible data is lacking, local media reports indicate that half the Nigerian population of 148 million are youths, 95% of whom are unemployed1. Decades of economic stagnation and poverty have conspired to drive a large chunk of this figure to crime and violence from early on. There is little doubt that the country's long-term goals are irrevocably tied to its ability to reclaim this youth force from unrest and mobilise its economic potential.

Basic Challenges

Before arriving at the means of tackling youth unrest, it is important to consider the developmental obstacles facing Nigerians in general, and its youth in particular.

* The country's infrastructure deficit runs into billions of dollars, a situation that severely impairs entrepreneurial development. In July this year, the government announced it requires $150 billion2 over ten years for investment in various infrastructure sectors; especially power, roads and railways. Business opportunities are, moreover, not equitably distributed over rural and urban areas, a condition that hexes development of new ventures and expansion of existing ones. A practically non-existent rail network and the extremely poor condition of roads have combined to further hamper the country's business environment and investment climate.

* Electricity is another area of concern in this context. Power availability is far short of demand, to say the least, and supply is largely erratic even in relatively developed urban areas. Most businesses are forced to run on expensive generators, while frequent outages leave many other facing break-ins and other criminal activities.

* The communication infrastructure too calls for massive restoration and growth, especially telecommunication and internet services. These two sectors were prime focus areas under former president Obasanjo, whose government outlined massive revival programmes aimed at enhancing the reach and percolation of the Internet and phone services. Nigeria's existing and emerging entrepreneurs alike continue to face tremendous hurdles in connecting with markets and potential investors. Although there has been tangible development in the communication sector over the last decade, it still presents enormous challenges.

* Entrepreneurship development has also been hamstrung by a slew of financial factors, poor access to credit for small businesses being the most prominent. The absence of credit and tax regimes sympathetic to entrepreneurial realities is a core area of concern, together with the predominance of lending through debt over equity.

* Low standards of education, restricted access to vocational training programmes, limited use of technology and the high cost of doing business in Nigeria are additional aspects requiring resolution for the country to achieve rapid entrepreneurial growth.

The Way Ahead

Clearly, there are diverse issues that negatively impact business development in Nigeria. For its significant youth population, decades of under-investment in the social sector and the failure of employment generation programmes have combined to create a climate of unrest. The volatile mix of rampant poverty, inflation and joblessness has led to a situation where criminality is very often the only means of survival.

Reversing this trend calls for a fundamental shift in official outlook and vigorous changes in four key areas:

* Training and Education: From the perspective of entrepreneurial development and youth mobilisation, the importance of wholesome and practical education simply cannot be overstated. The Nigerian government appears to understand the magnitude of its importance, and successive regimes have undertaken sweeping policy decisions in this direction. Before leaving office in 2007, president Obsanjo made entrepreneurial education mandatory for college students of all disciplines across Nigeria. The current dispensation under President Yar'Adua continues to place great importance on vocational training and skills development programmes for the youth by way of equipping them to meet business challenges. However, such measures need to be standardized across the education system and quality-upgraded to meet current realities.

* Government Programmes: As of 1999, the federal government has initiated several landmark measures to foster enterprise development, including setting up of the National Directorate of Employment, the Medium Enterprises Development Agency and the Bank of Industry. However, more effective steps are called for in order to increase youth participation in developmental schemes and in shaping social consensus on important macroeconomic issues. Encouraging youth leadership in both the public and private sectors remains crucial to leveraging their full economic potential.

* Financial Restructuring: Access to capital being one of the biggest setbacks to promoting youth entrepreneurialism, Nigeria needs to focus on devising and implementing radical policy changes in the financial sector. Banks and lending institutions require outlook-reorientation and sensitising to small business requirements as part of effort to boost financial access to emerging enterprises.

* Rural Barriers: Special attention must be given to develop business opportunities in rural areas, which significantly lag behind urban regions both qualitatively and quantitatively. Sufficient care must be given to enforce policies that favour localised and socially relevant enterprise across the varied Nigerian landscape.

The problem of youth unrest in Africa's second largest economy cannot be viewed in isolation from its larger socio-economic challenges. Nigeria must acknowledge its historic failure in meeting the aspiration of its youth, and come up with creative solutions that sufficiently harness their energies for durable and inclusive prosperity.