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Nigeria Needs Diverse Franchise Sector To Create More Jobs – UK Envoy

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By OLAJIDE FABAMISE,

United Kingdom Deputy High Commissioner to Nigeria, Laure Beaufils, has said there is need for Nigeria to grow a vibrant thriving diverse franchise sector that will help the country to drive the creation of successful businesses across the nation and create many more good jobs that the country needs.

Beaufils stated this in her welcome remarks at the Policy Development Facility programme in Lagos with the theme, ‘Unlocking the Potential of Franchising in Nigeria.’ She noted that Nigeria urgently needs more jobs and address the unemployment challenges facing the country.

She explained that the key constraints to economic growth and private investment in Nigeria has been  inadequate power, roads, multiple taxation, unclear property rights, excessive red-tape, corruption. She disclosed that all these constraints are complex, and none of them have easy solutions. They can only be addressed by a sustained period of political will to tackle them over the long-term.

The Deputy High Commissioner also said for Nigeria’s burgeoning population, the franchise model is a kin to job creation and continued sustainability. ‘‘This is evident in the number of large and most widespread brands operating some of franchising,” he said.

Beaufils stated that Vitafoam in Nigeria creates jobs by having a franchise model tagged ‘Igbo Boy Franchise Model’. Through the model, it recruits graduates that market and manage the outlets as CEOs. These employees are paid a percentage of the profit. Today, “this particular model generates aggressive expansion and growth results for the company and pays the graduates an increasing share of profits, which could be as much as N1million monthly”.

She further said  that with a modest sixteen farms at inception, there are currently over 2,000 farmers groups under the Babban Gona brand, with an average of five farmers in each group, Babban Gona envisages having 1,000,000 farmers under its brand by 2025.

The British Envoy said that the International Development Agencies and Implementation team have also found micro-franchising a useful model, to enable them rapidly achieve the goal of creating pro-poor initiatives and jobs. The goal is not to formalise the informal sector, but rather the project seeks to introduce efficiency into the informal sector. Micro franchising is one of the models adopted for the creation of those jobs.

 

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