In Nigeria, everyone is an entrepreneur

Report

In Nigeria, everyone is an entrepreneur

Nigeria's agricultural sector requires innovation to keep feeding its growing population. Young people are taking charge in the process, but corruption and logistics are a heavy burden, MO* journalist Arne Gillis observed on the spot.

Translation of this article is provided by kompreno, using a combination of machine translation and human correction. More articles from MO* are included in kompreno‘s curation of the finest analysis, opinion & reporting — from all across Europe, translated into your language.

Backed by the authority of a seemingly homemade uniform, the trio takes their chances. 'Papers, please,' it sounds through the open car window. It is not that they are not friendly. And neither do they look very threatening. But reflected in the spokesman's monkish smile is his country's original sin: corruption.

The trio has taken up post along an exceptionally bumpy stretch of road between Nigeria's largest city, Lagos, and the northern town of Abeokuta. That morning, they filled pits in the road with the red soil that defines the landscape deep into the Sahel. And for that effort, they charge a fee. This company, including a foreigner, might make their day.

While the spokesman discharges his duties, the two adjutants keep watch on either side of the car. Both men wield long sticks into which nails have been knocked. With these, they flatten the tyres of the audacious driver who is attempting an escape. Insofar as that flight would not prematurely run aground in one of the holes in the road, of course.

The identity papers do not suffice. Which documents are then missing is not specified even after insistence. It doesn't really matter, we don't have them anyway. And the price for that offence is set at 30,000 naira (converted to about 20 euros), an amount we can reduce to 2,000 naira after long negotiations. Exuberantly, the trio wish us a safe journey. Judging by the expansive face of my travelling companion, it seems to be business as usual.

Are these men freelance extortionists? Institutionalised beggars? Or are they just service providers? After all, they fill the gaps in the road. It is a question that will continue to arise throughout the journey in varying situations. For from minute one on Nigerian soil, the unsuspecting visitor, usually from uniformed people, is asked to contribute. It starts (and ends) at passport control in the airport, "Anything for the boys?

Predatory

'In Europe, you pay for road maintenance too, right? Only there it goes automatically from your bank account,' I am told as an explanation for the mild form of corruption. It is a controversial statement, but there is a grain of truth in it. In the absence of a functioning government, 220 million Nigerians are largely on their own. This results in what Dutch journalist Femke van Zeijl calls the 'do-it-yourself society'. The demander scales up his meagre wage, or creates one himself. Not a hair on the Nigerian's head that considers that corruption.

Of course, the slippery slope soon lurks around the corner. After all, what about police officers inventing offences to take money out of their pockets? Moreover, it is an open secret that police bosses demand certain sums from their squads on the street every day. After all, they have to pay their bosses. Thus, the money of many thousands of poor souls ends up in the pockets of higher-ups every day.

Nevertheless, the real corruption is in government contracts, it sounds almost in unison. Here, millions of dollars are simultaneously siphoned off and channelled straight into European bank accounts. This is motivated by rapaciousness, not bitter poverty. And Nigeria is a champion of this grand corruption.

Robbery was even written into the constitution in 1976 by Nigerian dignitaries pondering the definition of power. 'It is the ability to acquire power and prestige,' it sounded, 'and to dispense favours to political relations in the form of employment, government contracts, gifts or money.'

The law may have changed in the meantime, but the mindset hardly has. The relationship between Nigerian politics and corruption now seems pretty much the same as that between the Vatican and child abuse. Outside you keep up appearances, but inside you eat out what you want.

Unbridled entrepreneurial spirit

The result is a huge gap between rich and poor in Africa's largest economy. By 2050, the country will have the fourth-largest population in the world. The engine of the economy is its stupendous oil reserves, but these provide wealth only to a select few. The rest of the population lives from hand to mouth.

Nowhere is that gap more visible than from the Third Mainland Bridge. That bridge takes you from the mainland across Makoko - many thousands of stilt houses built on an open sewer, half hidden from view by a huge advertising panel for a whisky brand - to reach Lagos Island. There, prices per square metre are among the highest on the continent.

If there is anything averse to classes that defines the Lagosian, it is an unbridled entrepreneurial spirit. The only social game rule seems to be to be smarter, stronger and faster than the person next to you. Success is the highest good to be pursued, and is expressed in a dollar sign.

This hypercapitalism manifests itself in the activities of the trio on the Lagos-Abeokuta link, but also in the phenomenon of so-called Yahoo-boys, online scammers of world renown. A little daredevil can easily become a millionaire in this sector - or so shadowy entrepreneurs like a Hushpuppie would have us believe. The man himself was raking in millions, until he ended up in the sights of the US Justice Department. But the same entrepreneurial spirit, of course, expresses itself equally well in legitimate ventures with a constructive vision.

Foreign interest in the Nigerian economy remains rather limited for now. Nigeria instils fear in foreign entrepreneurs, the Belgian consul confirms. And so economic innovation has to come mainly from within. To get a picture of that innovation, MO* focuses on the food and agriculture sector. Nigeria aims to boost food production, which is succeeding, according to figures from the United Nations Food and Agriculture Organisation (FAO).

But the road is still long. As much as 70 per cent of Nigeria's population is engaged in the agricultural sector, which accounts for 22 per cent of GDP. But the sector is not efficient: Nigeria has to import as much as $3 billion worth of food a year. Consequently, the agricultural sector consists mainly of small-scale farmers. Lacking resources, they can hardly innovate, if at all. But that innovation is badly needed, especially in the light of the huge population growth the country is facing.

De Nigeriaanse landbouwsector bestaat voornamelijk uit kleinschalige boeren. Bij gebrek aan middelen kunnen ze niet of nauwelijks innoveren.

Nigeria's agricultural sector consists mainly of small-scale farmers. Lacking resources, they can hardly innovate, if at all.

Digital transformation

In a building on Lekki Phase 1, Farmz2U holds offices. The hip little farming company has fully engaged with booming internet technology. An application provides inland farmers, on the one hand, with information on what is currently in demand on the market. On the other hand, they can purchase seeds and manure tailored to their personal situation. The app also provides micro-loans and puts farmers in touch with buyers. 'This eliminates the many middlemen, allowing farmers to see their profit margins increase,' explain founders Oluwatimilehin Akogun and Princess Ogbechie. Farmz2U already works with companies offering storage space, including Lekki Mills, good for 280 tonnes of cassava a month. By increasing the use of such contacts in the future, farmers will be able to radically boost their production.

Soneye Abolaji embodies the transformation the Nigerian agriculture sector is going through. As a financial expert, he came into contact with Farmz2U, after which it did not take long for him to be convinced by their vision for agriculture. Since then, he has been one of the many farmers connected to the network.

We are at Abolaji's field in Ogun State, near the regional capital Abuekuta. All technology notwithstanding, crops still need to be physically planted, and that is not so evident in Nigeria's interior. Next door is the only plough available in the entire region. Abolaji's seed-planting machine also generates a lot of interest among the other farmers. Like no other, he realises the luxury of such machines. 'I am happy to lend them out,' he says. 'If you have to do the same job by hand, you sweat yourself to death for days.' His farm workers, young, sinewy guys from neighbouring Benin, like to hear it.

De oogst van Soneye Abolaji wordt opgehaald in Ogun State, Nigeria.

Soneye Abolaji's crop is collected in Ogun State, Nigeria.

Apart from digital innovation, can farmers count on government support? 'The government argues that the south of the country should focus on services, and that agriculture is for the north. Most agricultural investment therefore goes to the north. But Lagos is the biggest outlet and is in the south. That makes the supply chain terribly long. Actually, the government model does not make sense,' Abolaji believes.

This is precisely why he is so happy with the connection with Farmz2U. The connection with the organisation is special because it is based on the very un-Nigerian concept of trust. 'Farmz2U can only grow because of us, farmers,' Abolaji argues. 'But the same applies vice versa. That understanding is the basis of our cooperation.'

Social component

Oludiran Akinleye, professor of economics at the University of Lagos, has his reservations. He applauds Farmz2U's innovation, but still sees bread in an increase in scale. 'Therein lies the real gamechanger for the Nigerian agriculture sector.'

Still, newcomers like Farmz2U want to create precisely a network to compete on a large scale, the founders stress.

The same principle applies Soilless Farm Lab (SFL), another newcomer radically betting on scaling up. And here too, young people with a vision are at the helm. Soilless Farm Lab is demonstrating - again - in Abuekuta how it applies so-called organoponics, with which the company is deliberately betting on non-seasonal cultivation.

In essence, organoponics are raised beds on which, usually in greenhouses, you can grow certain crops all year round, without being tied to seasons or regions.

In addition, SFL also has an important social component. Much more than just a production centre, the company wants to be a training centre. Young people can enter a programme where they learn the ropes of farming. The aim is for them to take the knowledge they gain back to their home region, which should eventually lead to many production centres.

Jongemannen krijgen les in het constructielassen in het opleidingscentrum van Soilless Farm Lab, Ogun State.
Opleidingscentrum van Soilless Farm Lab, waar jongeren zich drie maanden lang onderdompelen in de technieken van organoponics, Ogun State.

Joy took classes at SFL. 'Since attending the programme, I call myself farmer Joy. Gone are the days when farming was something for old men poking in the ground with a stick. Farming is the future,' she beams.

Joy's enthusiasm earned her a job as SFL's communications consultant. About that achievement, Joy is visibly elated. For as much as these kinds of programmes mean for employment and food production, in this country, paid employment is the holy grail. According to the National Bureau of Statistics, Joy is among the 7.7 per cent of Nigerians with official employment contracts.

Hip birds on Lagos Island

The flea market, the hippest of all trade concepts, has actually found its way to Lagos. In a dead-end street on Lagos Island, a DJ plays records while hip birds browse the wares in abundance. Should these not be displayed under the palm trees, you could imagine yourself at Dageraadplaats in Antwerp.

Hakeem has a stand there with vegan food. Even Lagos' finest do not immediately know what to make of veganism. People wander around the stall, until the rain suddenly pours down and the flea market, including the food stand, is drowned.

We go to Hakeem's office, just down the street, where he explains his vision of growth. 'If you want to convince Nigerians to eat vegan, you have to appeal to their health. Ecological arguments don't win here.'

That doing business in Nigeria is not easy, he is happy to confirm. 'There are many kinds of problems. One is that the tax system does not work efficiently, because the different services are not aligned and nobody knows who paid what. That is why few companies are officially registered.'

He admits that his own small business is not registered either, although that is something for the near future. The introduction of the national registration number with biometric data should deter tax fraud.

‘Met de app verdwijnen de vele tussenpersonen, waardoor de boer zijn winstmarges ziet stijgen.’
Oluwatimilehin Akogun en Princess Ogbechie, oprichters Farmz2U

And then there are the logistical problems. As Hakeem explains the Nigerian tax system, the lights suddenly go out. Electricity blackouts are a maligned part of daily life in Nigeria. Routinely, Hakeem gropes for the switch on his home batteryin the dark .

At first glance, for a Nigerian with a German passport, staying in this hornet's nest seems unnecessary. Why won't he convince Germans to renounce meat? His answer is that of a visionary entrepreneur with his heart in the right place. 'Look, meat consumption in Africa is currently lower than in Europe. If you can convince Africans to give up meat now, you will make a real profit. Then you can play leapfrog and leave the whole social stage of meat consumption behind at once.'

Besides, Hakeem is much more optimistic about Africa than Europe. 'You do realise that half the European continent is run by fascists, right? No, the future is here.'

Fishing downtown

Brothers Issa and Sonde are the owners of a fish farm in the middle of the working-class district of Bariga. On their courtyard, they raise catfish, locally called point-and-kills. Those fish are the main ingredient in the insanely spicy peppasoup.

De broers Issa en Sonde, die in de binnenstad een eigen visbedrijfje uit de grond stampten.

Brothers Issa and Sonde, who started their own fishing business downtown.

They haven't thought about a company name yet. But that doesn't really matter. It's not like the pension department will ever come knocking. And neighbours and market vendors will also find their way to their fish this way.

Business is good, though fish farming in the middle of the metropolis does bring problems. A water connection is something for the happy few. Like many people, the brothers rely on self-drilled wells. 'But the water is actually too acidic. That's why we regularly buy water from a private company that comes and delivers it to their doorstep.' Thus the logistics become very complex, but the brothers do not let their heads hang. A tadpole costs 25 naira (a mere two euro cents), but a full-grown point-and-kill is sold for 3,500 naira in the adjacent market.

Issa and Sonde's short chain excludes profit-margin gnawing middlemen altogether. Tomorrow promises to be a great day.

This report came about in part thanks to the logistical help of Mike and Anthony.

Translation of this article is provided by kompreno, using a combination of machine translation and human correction. More articles from MO* are included in kompreno‘s curation of the finest analysis, opinion & reporting — from all across Europe, translated into your language.

Deze reportage werd geschreven voor het herfstnummer van MO*magazine. Vind je dit artikel waardevol? Word dan proMO* voor slechts 4,60 euro per maand en help ons dit journalistieke project mogelijk maken, zonder betaalmuur, voor iedereen. Als proMO* ontvang je het magazine in je brievenbus én geniet je tal van andere voordelen.

If you are proMO*...

Most of our work is published in Dutch, as a proMO* you will receive mainly Dutch content. That said we are constantly working to improve our translated work. You are always welcome to support us both as a proMO* or by supporting us with a donation. Want to know more? Contact us at promo@mo.be.

You help us grow and ensure that we can spread all our stories for free. You receive MO*Magazine and extra editions four times a year.

You are welcome at our events free of charge and have a chance to win free tickets for concerts, films, festivals and exhibitions.

You can enter into a dialogue with our journalists via a separate Facebook group.

Every month you receive a newsletter with a look behind the scenes.

You follow the authors and topics that interest you and you can keep the best articles for later.

Per month

€4,60

Pay monthly through domiciliation.

Meest gekozen

Per year

€60

Pay annually through domiciliation.

For a year

€65

Pay for one year.

Are you already proMO*

Then log in here