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BusinessDay Annual Retail Conference 2013: How Policy Can Shape Retail Business in Nigeria

Staff Writer
There is no doubt that the Nigerian consumers psyche and habits are changing. People are beginning to move up the social ladder, desiring better lives and improved living conditions. They are now more aware, getting wiser and sophisticated to the extent of desiring higher quality of products and services. In fact, they now aspire to purchase convenience-based goods and services. These demands are the visible impacts of the changing retail sector of Nigerian economy. The changes are taking place in spite of the various challenges involved and the high cost of doing business in Nigeria. With their direct daily contact with consumers in every city, state, local government, and local development area, retailers have an untapped grassroots potential larger than any other industry, and an opportunity to send a strong message on what needs to be done to put our nation on the right track for the future In order to assess the future of retail, we need to understand the sector’s current impact on our entire economy, the point where the efforts of many other industries get turned into cash. Increase in retail translates to the creation of more jobs for the ever-growing youth populace, encourages global trade, promotes advances in mobile payments, e.t.c Also, the contribution of the wholesale and retail trade sector to GDP has increased to 19.4 percent in 2011 from 16.2 percent in 2007. Some experts are of the opinion that the Nigerian retail sector is capable of becoming the third most dynamic sector after the banking and telecommunications industries in the country. In a few years time its growth in terms of revenue and profit will multiply as the current economic growth continues and the size of the middle class expands. Consequently, if the future of retail is going to impact our future economic well being, the policy agendas being shaped today, at least in the near term, will in large part shape the future of retail and foster and not hinder growth in this business sector in Nigeria. Conference Objectives Who to Expect: Operators of big, small and medium size retail brands, Manufacturers of consumer products, Agriculture value – chain service providers, Farmers, Agricultural cooperative societies, Farmers Associations, Banks, Insurance companies, SMEs, etc. Sub-Themes to be addressed at the Conference: 1. Infrastructure Advancement: It is critical that transportation infrastructure is improved— including ports, airports, rail lines, broadband and roads — so they can meet future demands. However, to further boost the retail market, retailers have called on the government to give incentives to real estate developers, alleviate land access procedures and give retail a greater regard in the country’s economic policies. 2. Advancing Innovation: Before lawmakers and regulators intervene in the development of technology, they must first consider its tremendous benefits and fully weigh the potential costs of any proposed regulation on the sector. In recent years there has been improved access to the internet via mobile phones and other devices and this is increasing social media usage and various online platforms which are influencing the Nigerian consumer and in turn changing the face of retail business in Nigeria. So what favourable policies are being laid down to encourage technology based solutions and innovation for the retail sector? 3. Driving Consumer Value and protection: Retailers must be able to give consumers ever more convenient and cost-effective ways to make informed buying decisions. Also the consumer’s protection must always be a paramount regardless of the changes in the retail sector. How does the government then ensure value for goods & protection for the consumer regardless of the retail channel used? 4. Formal and Informal Sector Retail Business A recent review of the Nigerian retail market by Euromonitor International, a world leading research organisation for consumer markets, noted that while the modern retail sector will continually grow in the next five years, it cannot displace the traditional market. The informal retail sector in Nigeria may be vulnerable to the domineering posture put up by the international retail giants. Government as well as the players themselves have to urgently build a more formidable informal sector. This conference will consider how the Government can help manage retail business to ensure the formal sector continues to grow and ensure that the informal sector is better organised than it is today. 5. Taxation: Many operators are unregistered and thus pay no corporate tax. Modern retailers have higher fixed costs; they cannot easily evade taxes because of their visibility and they have to source their supplies from legitimate channels. What policies need to be established to promote sales tax fairness to create a level playing field where all retailers collect sales tax regardless of whether they sell their products in stores, online or through the mail? What reforms can the tax system undergo to eliminate special tax deductions and credits in return for lower rates that will allow retailers to grow? Organisations are invited to participate as sponsors of the Summit in any of the categories as follows: As sponsors of the roundtable, organizations will enjoy the following benefits among others: Gold Sponsor Sponsorship Value: Silver Sponsor Sponsorship Value: Bronze Sponsor Sponsorship Value: Conference Details: Date: July, 31st, 2013. Venue: The Civic Centre, Ozumba Mbadiwe Street, Victoria Island, Lagos. Time: 10:00am For first line contact on this, call 08034019000, Amadi Iheukwumere on 07082256051 and Adebusola on 08176735693, or email to: amadi [at] businessdayonline.com   adebusola [at] businessdayonline.com.
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