Amid firms’ exit, stakeholders have charged manufacturers to put in place new measures and cost optimisation strategies to support their growth. Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said while running a business in Nigeria today is tough, there are several strategies they can employ to help them weather these tough times.  Urging businesses to look inward and divest as much as possible from importing raw materials needed for production, operators were encouraged to explore local sourcing as much as possible and embrace better energy efficiency. 
  
“If you are in the service sector, for instance, employ solar use or mixed energy use to cut down costs. Energy solutions are key to survival. Also, avoid debt financing as much as possible because of the high cost of funds. If there are opportunities for equity or other sources of funds, employ those instead,” he said.

He said businesses should be more responsive to customers as purchasing power is weakening daily and as part of business strategies, products must align to market realities.
 
“That is why we are seeing more ‘sachetisation’ and cost reduction, all in a bid to bring down prices and remain in business. You cannot pass all these costs to consumers so cost optimisation is very important this year. Better customer understanding is key,” he said.
  
Also urging better scenario planning for businesses, he said key variables that affect individual businesses should have scenarios planned around key variables that affect them. “If your business is highly sensitive to FX and FX is currently at N1500/$, you should have a plan in place in case it gets to N2000/$1 or more, even if it means suspending operations temporarily.
  
“Talent management is important too and sadly; Nigeria is witnessing a high rate of talent mobility now. If you don’t manage your talents well and they leave, it would affect your business and replacing them might be challenging. Talent management and retention is very important to survive the business storms this year,” he said.
  
President of the Association of Small Business Organisation of Nigeria (ASBON), Femi Egbesola, also shared insights on how small businesses can adapt to the economic downturn.   He highlighted that many companies have been downsizing, cutting overheads and reducing workforce to the bare minimum.  He urged small businesses should be more resourceful, and use local inputs and raw materials as substitutes for expensive imported goods.
  
To cut energy costs, Egbesola noted: “We must invest in alternative energy sources, such as solar, rather than continuing to rely on fuel to power productivity. Products are also being made in smaller packages at more affordable prices, encouraging smaller purchases as people cannot afford to buy more.”