With Nigeria’s economic pressures rising, businesses are being forced to innovate, adapt, and rethink their strategies. Ayo-Bankole Akintujoye, a seasoned expert whose work has spanned multiple industries, has been at the forefront of this transformation. From leading projects for African corporations to guiding SMEs through challenging times, his insights are more relevant than ever. In this conversation with THISDAY, Bankole shares practical advice on navigating inflation, digital transformation, and the critical role of mentorship in shaping future business leaders. Excerpts-
You have worked across several industries, from consulting to capital markets, insurance and oil & gas, and led projects for major corporations across Africa. What are some key trends you are seeing in corporate transformation in Nigeria, especially with the current economic pressures like inflation and subsidy removal?
Nigeria is at a turning point. The pressure from inflation and subsidy removal is forcing businesses to rethink everything, from cost structures to supply chains. One trend that stands out is the shift towards efficiency. Gone are the days of bloated operations. Companies are now looking to streamline processes, cut unnecessary costs, and use technology better. Companies who previously were conservative toward technology, especially major players are now adopting automation and AI solutions to optimize operations and stay lean. But make no mistake, it’s survival of the fittest. If you can’t adapt, you’re out. Now, agility is king.Another trend in transformation is an increase in expectations and skillsets of talents. Major players have been driving transformations in their workforce to align with new skills and capabilities required in the 2024 workspace. Also, many SMEs are realizing the need for structure and governance for sustainability, and are transforming into more structured, corporate-governance-led organizations.
You have helped over 10,000 SMEs through the Caladium Lagos SME Bootcamp. With rising costs and access to capital being significant barriers for small businesses in Nigeria today, what practical advice would you give SMEs to remain competitive?
One thing I always tell SMEs is: to simplify your operations. In times of rising costs, complexity is your enemy. Focus on what brings the most value and cut out the rest. I’ve seen countless SMEs struggle because they tried to be everything to everyone—don’t make that mistake. If you can’t afford to import raw materials, look inward and localize production. It’s often more cost-effective and sustainable. My second piece of advice is to build customer relationships, not just transactions. I worked with an SME that thrived because they invested in building trust. Even when they had to raise prices, customers stayed loyal because of that connection. In tough times, loyalty is worth more than money. Customers who trust you will stick with you through the ups and downs, giving your business the resilience, it needs to weather any storm.
As the founder of FedaCash, you are working on technology solutions for SMEs. How can digital transformation help small businesses in Nigeria thrive in an environment where the cost of doing business continues to rise?Digital transformation is no longer a “nice-to-have”, it’s a necessity for survival. At FedaCash, we’re using technology to solve cash flow issues for SMEs by providing instant access to capital. Think about it: a business with seamless access to working capital can pay its suppliers faster, avoid delays, and even negotiate better deals. Beyond finance, digital tools can reduce operational costs, automating processes that used to take days. Take my experience with SMEs in Lagos: businesses that digitized their inventory management cut waste by over 40%. In today’s high-cost environment, digital transformation isn’t just about efficiency; it’s about survival.
You have been vocal about the potential of MSMEs to drive Africa’s economic growth. How do you see the current government policies in Nigeria affecting small businesses, and what additional reforms would you like to see to promote entrepreneurship?
The policies we have right now are like a double-edged sword. On one hand, there’s support for MSMEs in terms of various grants and funding opportunities, but on the other hand, the regulatory environment is a minefield. Multiple taxation, complicated licensing processes, and foreign exchange shortages are killing the growth of small businesses. What we need is simplification. Streamline the regulatory processes and give MSMEs breathing room. I would also like to see more aggressive financial reforms. The government should encourage banks to lend to small businesses by reducing interest rates and offering risk-sharing programs. This is how we build a thriving entrepreneurship culture. The government should also focus on the impact of these initiatives, as most of these initiatives are intended to target very few businesses and the impact level is low.
Your strategy work spans beyond Nigeria to other African countries, and even globally. Can you share an example of a project where your strategic input made a significant difference in shaping a company’s or country’s economic policy?
One standout example is recently I was involved in a comprehensive feasibility study for the setting up of a DFI-funded Quality Testing and Inspection Centers for different countries in West Africa aimed at providing laboratory testing and conformity assessment services for agricultural commodities. During this project, we did market analysis, technical assessments and financial projections. The project addresses critical gaps in quality assurance, particularly for certain agricultural commodities, this ensures that local producers can meet international standards more efficiently, thereby increasing the export FX earnings and overall GDP of the economy.
You currently mentor over 60 youths across various countries. How important do you believe mentorship is in shaping the next generation of African business leaders, and what is the most critical skill they should develop?
Mentorship is everything. When I started, I didn’t have someone to show me the ropes, and I made mistakes that could’ve been avoided. That’s why I mentor these young entrepreneurs. The most critical skill they need to develop is problem-solving and business management. You can’t afford to just have technical skills anymore, you need to think on your feet and adapt. I’ve seen mentees who started with nothing but an idea and hustle, and now they run successful businesses. What made the difference? Their ability to solve problems, and manage their business for growth. To create structured mentorship experiences and help SMEs build these skills, we started the Caladium Lagos SME (CLSME) Bootcamp and the Caladium SME fellowship programs.
With the removal of fuel subsidies, many businesses are facing higher operational costs. What strategies should companies adopt to remain resilient and profitable in such an environment?
Now is the time to rethink your energy consumption. Fuel prices are rising, and they won’t be dropping soon. Businesses should explore alternative energy sources, with solar becoming more viable than ever. I have seen companies cut energy bills significantly by going green, and it’s a bonus for their brand image too. Another effective strategy is to optimize your supply chain. Look for ways to reduce unnecessary transportation costs. For example, a construction company we advised managed to cut expenses by 20% simply by collapsing unnecessary processes. These small but strategic changes can make a big impact on your bottom line while also positioning your business for long-term resilience.
You have a strong background in mergers & acquisitions and corporate turnarounds. In light of the challenging economic landscape, what advice would you give to companies considering mergers or restructuring?
Before you merge, ask yourself: Why are we doing this? If it’s just to survive, think twice. A merger isn’t a Band-Aid for a failing business. However, if you are restructuring to streamline operations and become more efficient, then go for it. When I led corporate turnarounds, the focus has always been on alignment, making sure the merged companies share the same values and goals. I remember a merger where the cultural misfit almost tore the company apart. You have to get that right before you proceed.
As someone deeply involved in the MSME space, how do you think the Nigerian business ecosystem can create better access to capital for small businesses, especially with traditional banks tightening their lending criteria?The key to supporting MSMEs is alternative financing. Traditional banks aren’t built to serve small businesses effectively. What we need is an expansion of fintech solutions—peer-to-peer lending, micro-financing, and flexible credit options that meet the specific needs of MSMEs. That’s why FedaCash was created, to offer faster, easier access to capital for small businesses. However, fintech alone isn’t enough. The government needs to implement risk-sharing programs for banks, encouraging them to lend more to small businesses with growth potential. This combination of fintech innovation and government support will provide MSMEs with the funding they need to thrive and grow, making the financing landscape more inclusive and accessible.
You have worked with several governments and multilateral organizations. What role do you think international partnerships can play in driving economic growth and job creation in Nigeria?
International partnerships are critical because they offer far more than just funding—they bring in expertise which is a missing piece for sustainable development. From my experience with multilateral organizations, the most impactful projects combine foreign capital with local knowledge. Simply throwing money at a problem doesn’t work, money without expertise is like giving someone tools without teaching them how to use them. Real progress comes from partnerships that focus on knowledge transfer, whether through training, introducing new technology, or sharing best practices. Nigeria has a vast pool of talent but lacks the infrastructure and expertise to unlock that potential. International organizations can fill this gap, offering technical assistance to help businesses adopt more efficient practices. The goal should be sustainable growth, empowering businesses to thrive and compete globally, well beyond financial aid.
Caladium Consulting has been instrumental in supporting MSMEs. What has been the most rewarding success story you have witnessed, and how did it inspire your continued work in this space?
One of the most rewarding moments was working with a healthy food chain. Where we helped to diagnose and understand the current realities of the company. During this process, we discovered that despite the success of the core business, they faced the problem of flatlined growth. To address this, we worked closely with them to develop a strategic plan that allowed them to diversify their product offerings and develop new product categories. The diversification has been a crucial driver of the company’s success, accounting for 17% of the company’s revenue, and led to its reaching new market segments and strengthening its position as Nigeria’s premier healthy food provider. Small businesses in industries like food and wellness are critical for creating healthier lifestyles, and their success reverberates across the community. When they grow, everyone benefits.
The global business landscape is rapidly changing due to technological disruptions. What emerging technologies do you think Nigerian businesses should adopt to stay competitive?Nigerian businesses need to look seriously at AI-driven analytics and automation. AI isn’t just for big tech anymore, it can transform decision-making by giving businesses real-time insights into customer behaviour, market trends, and even inventory management. Imagine cutting down manual processes, making faster decisions, and predicting what your customers want before they even know it themselves. Then there’s automation: whether it’s automating your supply chain, customer service, or marketing, businesses that embrace automation will significantly cut costs and improve efficiency.
With your extensive experience in strategy, what do you think is the most common mistake businesses make when crafting their growth plans, and how can they avoid it?
The biggest mistake businesses make? Overcomplicating things. Many companies think that to grow, they need to expand into multiple areas at once, trying to do everything, everywhere, all at the same time. But growth isn’t about doing more; it’s about doing better. You have to focus on your core strengths, what you’re already good at, and double down on that. We once worked with a company that wanted to expand into five different sectors simultaneously. Their ambition was commendable, but spreading themselves thin was eating into their cash and efficiency. We streamlined their focus to where they had the most potential and helped to prioritize their other initiatives. The key takeaway is this: clarity over complexity. When you focus on your strengths and simplify your strategy, growth becomes more sustainable and achievable. Sometimes, doing less is the secret to achieving more.
