The thought process of the Organised Private Sector (OPS) in Nigeria, as highlighted by the organisation’s newly elected chairman, Mr Dele Kelvin Oye, may just be what the country needs to break the economic logjam afflicting it over the past year. There is no doubt that the OPS, if properly galvanised, can provide the tonic the government needs to turn around the economy. Oye’s ideas are lofty, but they must be properly and thoroughly harnessed to make a desirable impact.
Indeed, as widely acknowledged, the private sector is the engine of growth in many economies worldwide and stories of economic success in many nations have been tied to the thriving and resilience of its private sector.
Oye’s thought of having a united and coordinated private sector aligns with this awareness that the success of the national economy is largely tied to the prosperity of the private sector, albeit with the coordinated support of the government.
The new chairman of the OPS spoke of a need to strengthen the private sector, create an environment where all voices are heard, address pressing issues facing the private sector, foster a dynamic and collaborative private sector, foster an environment where diversity is celebrated and all members are equally represented, facilitate open discussions and debates on relevant matters as well as cultivate a culture of engagement and collective deliberation before making any official decisions on behalf of the OPS, among many others. The onus is now on Mr. Oye to walk the talk; because, as the saying goes, “talk is cheap.”
The role of the private sector is magnified under a capitalist system or simply put, where the role of the market is given prominence in the allocation of resources using the price signal. In most national economies globally, aside from a few countries, the private sector has been their engine of growth. The classical case is the United States of America where private enterprise is the major fulcrum of the economic structure with the role of government being that of regulation or that of a referee in ensuring that the public interest is protected in the running of the economy. Even in welfarist states such as the Scandinavian countries and the United Kingdom, private sector activities help to shape the future direction of their economies. However, these are usually propelled by the effective coordination of the private sector with strict regulatory oversight from the public authorities.
The thoughts of Oye’s OPS are laudable. They, however, need further processing and articulation of the necessary steps to bring these thoughts to fruition. First, the OPS aside from putting its house in order, needs to engage the government on critical issues such as the entrenchment of a favourable business climate for private enterprise to thrive. This applies to both the informal sector as well as the organised private sector. The business climate in Nigeria is currently suffocating, especially as it applies to micro, small and medium-sized enterprises.
Challenges abound, from the poor availability of credit, the seemingly uncontrolled and galloping rate of inflation, the difficulty in accessing foreign exchange at reasonable prices and the dearth of necessary but basic infrastructure to operate and stay in business. Many other challenges abound. The ease of doing business appears not to be getting better and real incomes or the purchasing power of the population to make demands for the output of the private sector is very troubling.
The OPS should establish viable “think tank” structures that would ensure that its demand from the government is well articulated with effort made to be humble enough to elicit ideas from outside its ranks, to ensure that private enterprise thrives in the country. One area the OPS needs to engage the government is on the current “tax, borrow and spend” posture of the federal government which in the long run would not be beneficial to the economy especially where not much tangible assets are seen to justify the expenditures. Moreover, the government is still living large and making little or no effort at cutting down on the cost of governance.
The OPS has a lot to do in protecting the interests of the informal sector, especially in enhancing the transition of many of the enterprises in the informal sector to join the rank of the OPS. This will help the sector in driving its relevance in the growth of the economy. Currently, the global economy is experiencing changes. Many economies globally are increasingly focusing on their national interests with the wind of “America First” blowing from the United States of America and spreading to many countries in Europe and elsewhere and leaving many developing countries “in the cold.”
These developing countries are negatively affected with their nationals likely forced to face deportation and the consequential effects on the flow of remittances. A way out is for the private sector in developing economies to wake up and engage the government on how to avoid the “business as usual” stance and ensure that private enterprise thrives in the development of the national economy. Indeed, the OPS has its work cut out for it and it cannot afford to fail in making its modest contribution to the nation.
