FG Eyes Franchise Industry’s Huge Potential
The Federal Government has disclosed plans to explore the vast potential of the Franchise Industry, to support Nigeria’s economic development drive.
What’s the government’s plan?
According to the Minister of State for Industry, Trade and Investment, Ambassador Mariam Katagum, during the launch of the pilot program of “Franchising as an Investment Alternative for Lagos MSMEs” in Lagos recently, the FG is working through relevant ministries, departments, and agencies to drive collaboration with stakeholders to address the regulatory clauses and disclosure documents of the Franchise Bill for consideration and passage into law at the National Assembly. Represented by Mrs. Olumuyiwa Ajayi-Ade, the Deputy Director, Industrial Development Department of the Ministry, Katagum said Nigeria’s population of more than 200 million people provides an opportunity to make the country the center of franchise development on the African continent.
What’s the potential of the industry?
A 2019 report by the United States Department of Commerce noted Nigeria’s potential of earning up to $100b yearly through franchising. Also at the Launch, the Special Adviser to the Lagos State Governor on Sustainable Development Goals and Investment, Mrs. Solape Hammond, highlighted the industry’s potential as she noted that the global market demand for the franchise industry grows by as much as 30% annually. “For many businesses, franchising is an excellent route to growth, opening up new opportunities and markets. In a society like Nigeria where company reputations are highly valued, therefore, operating under a trusted brand name puts one ahead of the competition in many ways”, she said while encouraging investors to set up franchises in Lagos.
The initiative will involve training on franchising and capacity building as well as franchising awareness, processes, and structures for 300 Lagos-based MSMEs. The Lagos State Office of SDGs and Investment, in collaboration with Mr. Tayo Adedugbe, the founder of the Francis Forum, added that the initiative’s aim is to support the growth of franchising as a workable model for aiding MSMEs in scaling their businesses, attracting investments, expanding across the state and internationally, and creating new jobs while boosting and diversifying the economy.