Business News of Friday, 20 June 2025
Source: www.punchng.com
At least 31 per cent of Nigerian companies are grappling with a shortage of competent supply chain professionals as the ‘Japa’ phenomenon continues to drain the country’s talent pool, a new report by global consulting firm PwC has revealed.
The findings, presented at a high-level industry Consumer and Industrial Products and Services industry breakfast session in Lagos on Tuesday, formed part of the opening remarks delivered by the Country Senior Partner at PwC West Africa, Sam Abu, with the theme, ‘Building Supply Chain Resilience in a Dynamic Operating Environment.’
According to Abu, the implications of the migration trend on operational continuity are becoming more dire as supply chains, long regarded as mere logistical back-ends, now hold centre stage in business strategy and survival.
“Thirty-one per cent of CEOs say they are struggling to find people who can manage increasingly complex supply networks. The ‘Japa’ trend has made this even harder here. The talent drain is real, and it’s affecting operational efficiency,” he said.
Citing PwC’s Global CEO Survey, Abu noted that while 64 per cent of Nigerian CEOs are optimistic about the country’s economic prospects, as many as 42 per cent believe their businesses may not remain viable in the next decade without significant transformation.
“That gap between optimism and operational readiness highlights a pressing issue. It underscores the need for more robust organisational processes, especially in supply chain strategy,” he said.
Abu added that Nigerian businesses are not only navigating inflation and macroeconomic instability but are also exposed to external shocks such as geopolitical tensions and disruptions from global conflicts.
“Whether it’s the wars in the Middle East or Europe or security concerns at home, these disruptions have real, tangible effects on supply chains, especially production and distribution timelines,” he said.
According to him, three core trends are reshaping the business landscape: artificial intelligence, climate change, and shifting geopolitics. These, he said, are forcing organisations to adapt rapidly or risk falling behind.
“Industry boundaries are blurring. Legacy players are now teaming up with tech startups, logistics providers, and energy firms. Success today depends on ecosystem collaboration, not just internal strategy,” Abu told the gathering of CEOs, policymakers, and trade experts.
He warned that the traditional model of optimising supply chains within fixed industry silos has become obsolete, adding that businesses must now develop cross-sector, agile supply systems capable of withstanding shocks and leveraging emerging opportunities.
“Businesses must redefine their goals to align with a fast-changing economic landscape,” he said, listing strategic reinvention, AI adoption, and sustainability integration as key drivers of resilience.
Also speaking, the Director-General and Chief Executive Officer of the Lagos Chamber of Commerce and Industry, Chinyere Almona, in her speech with the theme ‘Resilience as a Competitive Edge for Businesses’, noted that building supply chain resilience in a dynamic operating environment was critical to all businesses.
“In some parts of the world, you can transport goods efficiently at night. Here, we say, ‘Let’s wait till daytime’ because of insecurity,” she said. “We’re not just dealing with global problems. Nigeria has its own unique challenges.”
She listed power instability, high logistics costs, regulatory uncertainty, and forex scarcity as major hurdles affecting Nigerian businesses.
“Without power, we can’t drive real economic productivity,” she added.
Quoting data from a recent PwC CEO survey, Almona noted that 64 per cent of Nigerian CEOs remain optimistic about growth, yet 42 per cent doubt their companies can survive the next decade without transformation.
She said insecurity, poor infrastructure, and rising energy costs were causing post-harvest losses in agriculture and threatening food security.
“You produce goods but must first construct roads to transport them. You’re now in road construction, not just manufacturing,” the DG added.
On port inefficiencies, she shared an incident where a businesswoman was charged import duties for wine over a shipment of bottled water.
“You say it’s water; Customs insists it’s wine. You either pay or lose your goods,” she said.
Almona called for regional trade integration, supply chain digitisation, diversification of suppliers, and massive investment in vocational skills.
“Over 70 per cent of manufacturing delays in 2023 were linked to port congestion and forex constraints. Resilience is no longer a nice-to-have; it’s a survival strategy,” she said.
She warned that Nigeria’s over-reliance on foreign suppliers leaves the economy vulnerable to global shocks.
“We import 85 per cent of intermediate goods from outside Africa. If we localise sourcing, we’ll improve regional resilience,” she said.
Also speaking, partner at PwC Nigeria, Oladele Oladipo, has said that strengthening Nigeria’s supply chain systems could significantly boost economic growth and improve citizens’ quality of life.
Oladipo, who leads the firm’s Consumer and Industrial Products and Services division, spoke at the sidelines of the business resilience forum hosted by PwC in Lagos.
According to him, supply chain engineering has become a critical business asset and not just a support function, as many firms once believed.
“Just like people and raw materials, the supply chain is now a strategic imperative,” he said. “Leaders must invest in making it efficient, agile, resilient, and future-ready.”
He noted that effective supply chains can no longer be built in isolation, adding that the government, regulators, vendors, and trade institutions must all work together.
“One major takeaway from today’s session is the power of collective action.
“When companies come together to engage the government or regulators, it’s more cost-effective, and they achieve more,” he said.
He urged business leaders to embrace technology, not only to cut costs but also to gain insight into consumer behaviour and market trends.