Tuesday 13 September 2016

A tale to tell: Nigeria in its worst recession in so many years


“I was dumbfounded to see this place I have put so much investment in gone before my eyes in the space of a few minutes,” says Ada Osakwe, founder of The Nuli Juice Company, who opened her flagship store just two months ago. The owners of these businesses later learnt from the authorities that their landlord had been served with notices stating that the properties violated zoning laws. Osakwe explained that she had obtained permits from the state government to serve food at her juice bar and café before opening her doors in June, and was not informed when she did so of any zoning problem with the property on which she had paid a year’s rent in advance.
Two days later, the state government announced it was removing "unplanned commercial centres" and “roadside restaurants” that have “distorted” government planning. “This is an . . . ongoing operation to sanitise the environment,” said the press release.The failure to serve notice to the tenants themselves led to fury on social media and a wave of support for the afflicted businesses. Uber Lagos added an option to its app to allow its customers to order juice deliveries direct from Osakwe. 30 staff face an uncertain future as their employers grapple with the costs of starting anew. Amid its worst economic crisis in generations, Nigeria can ill-afford to squander jobs. Official statistics released last month found that in the second quarter of this year 49.5 per cent of the youth workforce was “unemployed or underemployed”. Osakwe says she employed eight young people who earn 2.5 times the minimum wage. In Abuja, the capital, government is carrying out a similar campaign to remove illegal structures. Last week, it spray-painted 24-hour demolition notices on several businesses. Muna Okam, owner of Chloe’s , wrote on Instagram: “We’ve been in this building doing business for five years and you give us 24 hours notice at almost the close of business for demolition . . . how much more are entrepreneurs supposed to take?”The idea that gov't is one of the hurdles that ambitious young people must clear would no doubt be an affront to Buhari’s administration, which convened a “demo day” to promote entrepreneurs.

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