ECONOMIC AND SOCIAL ENTREPRENEURSHIP DEVELOPMENT PLAN

Every year, billions of dollars of Nigerian tax-payers funds goes to waste either through corruption or by way of some other fruitless endeavors. Meanwhile, literally thousands of Nigerian Graduates are unemployed and searching for jobs. Consequently, criminal activity flourishes in Nigeria from kidnappings to armed robberies to outright terrorism in the form of Boko Haram. With a diverse wealth pool of natural resources and a teeming mass of skilled workers to match, Nigeria ought to be playing ball with the big dogs by now.

Corruption, bureaucratic inefficiency and general ineffectiveness are well documented problems with the Nigerian government but if the government as an organism cannot provide what we the people need, then perhaps we the people need to take it upon ourselves to provide for ourselves? In the first place I believe that the job of a government is not to provide food on everybody’s table, rather it is to create a table upon which people are able to eat their food. To put it another way, create an enabling atmosphere for a man to fish and when he gets hungry enough he’ll sure learn how to fish very well!

I propose that out of Nigeria’s annual revenue (which is in the region of USD 70 billion), a sum of USD10 billion should be set aside by the government for the provision of low interest, collateral free loans for business and social development schemes. Individuals, small businesses and charitable organizations would be given the opportunity to apply for loans up to a maximum amount of USD10, 000. 00 for the purpose of either developing a business idea or building a social amenity.

An agency manned by highly trained and experienced economists, managers, marketers and finance specialist would be set up to review applications and act as consultants to successful applicants. Once approved, loans would not be disbursed directly to the applicants, in order to avoid abuse, but would be put into a special account. The money in this account would be disbursed directly to vendors in strict accordance with the transactions detailed in the business plan or proposal submitted.

Loan Approval Criteria:
• Individuals of a net worth above USD25, 000. 00 would not be allowed to apply for a business loan.
• Business ideas must be based on a sound business model
• Social proposals must be demonstrably beneficial to at least an entire distinct community
• Priority will be given to the most innovative ideas with the greatest maximum benefit for society in terms of employment opportunities, provision of social amenities and growth potential (of the project).

Loan Conditions
• No collateral required
• Interest rates will be minimal and collection will start only after the first six months of operations
• Successful applicants may not apply for another grant subsequently
• The entrepreneur may take business decisions on his own but all major spending must be approved by the agency.

Distinct benefits
• Direct employment. It will be necessary to create a brand new agency with a unique mandate in order to administer the scheme. A target number of 1 million entrepreneurs will require at least I thousand case officers to process each application and follow up consequently to ensure that the loans are being used for the appropriate purposes
• Growth of the Economy. By encouraging and actively driving entrepreneurship, GDP will grow leading to higher per capita incomes, higher investment spending, more tax revenue for the government and ultimately lead to a bigger cake for everyone including those not directly involved in the scheme.
• Social schemes will benefit entire communities and ease the dependence on the government to provide amenities which it has failed to do since October 1st 1960.

Possible Challenges
• Flooding the economy with that much money at a go could lead to inflation however since the funds are being directed into economic enterprise and social development projects, the effects may not be that pronounced. Consumer spending is the principal driver of inflation as opposed to investment spending.
• Corruption is an obvious one and given the complexities of the Nigerian society it will be a major issue to deal with. The government will need to show some commitment to maintaining transparency and accountability.
• Bureaucratic practices may get in the way of efficiency.

So what do you all think, would this plan work and what do you think the impact of it on our economy and society would be, if it were implemented? What aspects of the plan are unrealistic and could be refined?