HOW THE NIGERIAN ECONOMY IN YEAR 2015 WILL AFFECT YOUR SME BUSINESS While political & security news have dominated our headlines in the last few months, economic matters have gradually gained momentum, competing for space on the front pages of the Newspapers in the past few weeks. With the dwindling oil price, it is no longer news that Naira has been on a free fall in the past few weeks. No thanks to the CBNs official devaluation of the currency vis-a-vis tightening of monetary policies. The question is: HOW WILL ALL THESE DEVELOPMENTS AFFECT BUSINESSES IN NIGERIA? The policy intervention of the CBN will portend the following direct consequences on Nigerian businesses: * Banks will have less funds to lend out to businesses due to the reviewed CRR (Cash Reserve Ratio). Thus, money will be scarce; * The scarcity of funds will lead to cost of lending soaring further in 2015. This will have a direct impact on the operating expenses of businesses; * The purchasing power of consumers will be reduced. Thus, they will be limited in their Willingness To Pay for goods & services. This will have negative impact on Turnover; * The demand for luxury items will drop due to the dwindling disposable income of consumers; * To shore up revenue, Governments at the 3 levels will become more aggressive with businesses in the area of taxation; - Small businesses will experience increase in operating cost due to high cost of capital & high cost of raw materials - etc etc. SO HOW SHOULD ENTREPRENEURS POSITION TO AVERT THE CONSEQUENCES OF THESE PROGNOSIS? ATTEND OUR 2014 BUSINESS DINNER: DATE: Sunday, December 14th, 2014 TIME: 5pm - 7pm prompt (It is strictly a 2-hour event) VENUE: New China Restaurant, Mobolaji Bank Anthony Way, Opic Plaza, Ikeja, Lagos LEAD DISCUSSANT: Dr. Simeon Ifere (Senior lecturer, Business Administration Dept., University of Lagos) To register, visit soarandheritage.org/registration
Posted on: Fri, 05 Dec 2014 17:41:23 +0000
Trending Topics
Recently Viewed Topics
© 2015