The Pro-Poor growth and Promotion of employment in Nigeria programme- SEDIN, sponsored by GIZ has described franchising as a potential lever for Micro, Small Medium Enterprises and economic growth in Nigeria.
Head of programme, Pro-Poor growth and Promotion of employment in Nigeria programme- SEDIN, GIZ, Mr. Markus Wauschkuhn said this Tuesdays while delivering his opening remarks at the Public-Private Dialogue on Franchising in Nigeria.
Wauschkuhn said SEDIN/NICOP has also provided support the private stakeholders to work towards identifying and overcoming the challenges confronting franchising in Nigeria.
“The report and the position paper highlighted some of the challenges of franchising in Nigeria and recommended the strong need to improve the regulatory framework for franchising as well as increase capacity and awareness of franchise model among stakeholders.
“Based on this, SEDIN/NICOP has provided support to private sector actors in the industry, including the Nigeria Association of Franchise Business Members (NAFBM) and CTBA, to organise policy dialogues in Lagos and Abuja to discuss with stakeholders the challenges of the
franchise industry and recommendations to address those challenges for growth”.
He said SEDIN is in another partnership to back franchising with a regulatory framework which is required to open up the space for local and international franchisors to invest.
“To upscale the support to franchise industry growth in Nigeria, SEDIN/NICOP is now also
partnering with NESG-NASSBER on this Public-Private Dialogue (PPD) to address the crucial issues affecting the growth and development of the franchising industry in Nigeria, with specific
focus on the franchise market and the Franchise (Regulation) Bill”.
A Board Member, Nigeria Economic Summit Group, Mr. Nnanna Ude said Nigeria’s large population presents great opportunities for Franchising business which has great potentials to improve the Gross Domestic Product of the nation, as it is the case in other climes.
Nnanna expressed optimism on the readiness of government to key into the huge job creation venture such as franchising.
“One thing is sure: Nigeria cannot continue with business-as-usual approach to policies and legislation if we must fast track economic growth and development.
“Local and international companies have embraced franchising as a successful strategy for business growth. According to International Franchise Association’s Annual report, franchises in the United States generates $1.6trillion in economic production annually, 5.8% of the Gross Domestic Product. Franchises produce goods and services worth $868.1billion in 2016 and paid out $351.1billion in wages. Franchises generate $929.9billion in GDP indirectly while 3.4 percent of the GDP in the private sector was made up of franchises.
“Nigeria’s large population presents and incredible business opportunities for franchises and the government has identified it as a viable for creating sustainable enterprises and are desirous of local franchise concepts.
“The Franchise Bill 2022 (SB. 969) which is currently in the Senate seeks to create a framework for the regulation of Franchising and guidelines for relationship between franchisors and franchisees.
“There is no doubt that sustained efforts form private sector working with relevant institutions will ensure that the Nigerian economy becomes globally competitive”, Nnanna said.
Also speaking at the dialogue on the status of the franchise market in Nigeria, the founder and president, Nigeria Association of Franchise Business Members, Chiagozie Nwizu emphasized the importance of legislation to back Nigeria’s franchise business.
“The Nigerian franchise business is at its infant stage and there is need to learn from those countries who have gone ahead of us. There is a need also for a franchising law which cover same”, he said.
While there are two separate bills on Franchising both at the House and Representatives and the Senate, stakeholders however agreed on the need to make collate impact from other stakeholders to boost the chances of the bill. They also advocated for a dedicated unit to drive the franchise business in the country.