Creating Market Innovations Innigeria
SIR: ARETE Book Club, an Abuja- based literary community of over 170 career and business professionals in Africa, in its recent Book Review on “Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty” written by Clayton Christensen, Efosaejomoand Karen Dillon, challenges Nigeria’s government to focus on creating market- driven innovations in the “nonconsumption economy” to tackle poverty.
The monthly Book Review, which had Dr Osasuyidirisu, the Executive Director of Policy Innovation Centre ( PIC), as the Lead Discussant, highlighted from the book, challenges to market innovations, especially in Africa and Nigeria. It identified lack of political will, corruption, inefficiency, poor infrastructure, weak institutions, hostile business environment and skills gaps as major challenges to creating disruptive market innovations.
Lessons were highlighted from the United States of America, which was bedridden in public service corruption, low infant mortality rate and life expectancy, low income and savings in the 1850s. The Asian Tigers, particularly South Korea in the 1950s, had a high poverty rate, corruption, inefficient economy and weak institutions. The USA and South Korea were able to turn their challenges through purposeful leadership that focused on the informal sector and the non- consumption economy to drive growth. Innovations from Kodak, Ford, Singers, and others created a culture of innovation in the USA. Sony, KIA and Samsung, which originally started off as electric blanket, bicycle and dry fish companies, respectively, kickstarted the growth and expansion of the Asian Tigers, and turned poverty to prosperity.
Nigeria must take a clue from the United States of America and Asian Tigers to create market innovations driven by nano, Micro, Small and Medium enterprises ( MSMES). While poverty remains an issue in Nigeria, especially in households in rural communities, the solution lies in building prosperity through marketcreating innovations. The Mo Ibrahim Celtel story of introducing telecommunication in Africa against the odds remains a motivation for young innovators. The mere doubt opportunities are not seen does not imply they don’t exist. Opportunities in Nigeria’s informal sector must be identified and explored. This non- consumption sector is the engine for economic transformation and sustained prosperity.
Nigeria must create a sustainable market for businesses before solving the problem of attracting resources and increasing production for economic growth. Government must support entrepreneurship in sectors like agriculture, manufacturing and services that offer opportunities for employment rather than lessemployment- generating sector like Oil and Gas. Combating corruption is crucial, but the market can grow amid corruption as no nation is completely free from the cancer. Building infrastructures is not enough for economic growth; a vibrant market economy will sustain the infrastructure and drive real and impactful growth. Nigeria must strive for innovation as a culture and value system.
The World Intellectual Property Organisation’s ( WIPO’S) Global Innovation Index ( GII) recent report shows that Nigeria is not on the list of Africa’s Top 10 innovative economies. Nigeria is also not on the Global Top 100 list. Market- driven innovation is the new strategy for prosperity. Nigeria must improve its Business Ready ( formerly considered as ease of doing business) ranking to create a market that will drive and sustain growth, achieve inclusive prosperity and lift many Nigerians out of extreme poverty.