Nigeria’s Fraud System: It Effects On Entrepreneurs.

Globalization which use to be a myth, especially to the developing Countries is now gradually becoming our dignified reality. Entrepreneurs are now adopting the work from home philosophy, which is changing our business culture. Globalization is no longer a farce. Business transactions are no longer limited by borders. Self-contained countries are now adopting the culture of a more integrated world.

The change in a business from a company associated with a single country to one that operates in multiple countries is a desirable goal for most entrepreneurs. Right now the world is experiencing some changes. Businesses are evolving, technology is changing the modus operandi of our businesses.

Nigerian entrepreneurs have been playing the “start local think global” card for years. Now that globalization and technology has availed us the opportunity to put this ideology to use; our undignified reality of a fraudulent system is beginning to catch up with us - Nigerian entrepreneurs.

Nigerian Entrepreneurs 

Nigerian entrepreneurs are sitting on a ticking time-bomb as a people. It’s just a matter of time, entrepreneurs will soon start reaping the dividends of Nigeria’s unchecked insanity. The insanity of a system that idolizes fraud.

Trust is the oil that keeps the engine of trade and commerce going, especially on a global scale. It is a non-negotiable business ethic, that shouldn’t in any way be compromised.

Anytime you compromise the non-negotiable of business transactions, you put entrepreneurs at risk of future success with the global economy. 

For the Nigerian entrepreneur’s blood to flow through the veins of the global economy; we have to rethink our ideologies. We have to stop glorifying fraud. Especially internet fraudsters (Aka yahoo boys).

We have to start questioning ill gotten wealth. Clamping down on money laundering, and changing the image of Nigeria on the global space. The “live fast die young” generations are gradually killing the reputation of focused Nigerian entrepreneurs who truly want to run their businesses on a global stage.

These bedeviling ills, if not checked will continue to plaque the Nigerian eco-system. I know the sky is the limit for most forward thinking Nigerian entrepreneurs, but our current realities says otherwise. Our boarders are now becoming the limits to playing on the global stage of commerce and trade - owing to this our fraudulent system. 

Lack of Trust Stifles Globalization

The trust currency is the most valuable exchange. Nobody does business, with who they don’t trust.

Trust has to be on the table of trade and commerce, especially on the global stage.

Enshrined in the business ethics of international brands is trust and integrity which are major factors in the psychology of selling, and must not be breached. 

How then do Nigerian entrepreneurs scale up?

How do we create more jobs? 

How do we directly impact our FX?

How do we change the narrative of Personal Accounts not being able to receive money via PayPal in Nigeria?

How do we change the narrative of the stigmatization of Nigerian entrepreneurs in the finance/account sectors on the global?

How do we get more fundings from Venture Capitalists?

How do we address, freelancers on Fiverr & other remote sites not getting as much jobs as possible because of the Nigerian factor?

The bottlenecks on visa approvals/refusals for Nigerian entrepreneurs, as well as the stringent immigration application process, documents required, and longer processing times for Nigerian applicants.

The stigmatization of Nigerian entrepreneurs in diaspora, simply because we have failed to question the ills racketeering our system.

These are questions we should be asking ourselves as entrepreneurs. Questions, whose answers are deeply rooted in the fabric of the Nigerian eco-system.

CONCLUSION

The impact of fraud and financial related crimes on the Nigerian economy are enormous when we consider the high rate of crimes and the amount involved especially in the area of cyber crime (yahoo yahoo), advance fee fraud or 419.

Fraudulent practices and financial related crimes have portrayed Nigeria in bad light and as such foreign investors are skeptical in doing business in our country.

We have directly or indirectly hampered the flow of Foreign Direct Investments (FDIs).

Fraud and related financial crime has significant effect on Gross Domestic Product thereby affecting the Nigerian Economy. However, it has contributed in affecting the economy in a negative way.

RECOMMENDATIONS

Auditors and Accountants in organizations and financial institutions should be trained on how to carry out forensic investigation since the fraudsters are now sophisticated in their act.

Against the backdrop of glorifying ill gotten wealth, stiffer measures should be put in place for perpetrators of such crimes.

Also internal control systems should be strengthened to block opportunities that attract fraud perpetrators.

Fight Against Corruption: Corruption has become a way of life in Nigeria since authorities no longer frown at it because chief cronies are involved. Despite various agencies and commissions established to fight corruption and crimes in the country, the crime rate especially financial related crimes are on the increase hence the government should be serious in the fight against corruption.

This type of attitude does not portray the government in good light before the international community; hence, anti-corruption agencies should improve on their strategies in fighting corruption and fraud so as to reduce the negative effect of fraud on the Nigeria economy.

Benefits of Globalization for Nigerian Entrepreneurs

1. Globalization has boosted output in the Western economy, increased their foreign exchange earnings. We can’t overemphasize how much of an impact it will have on the Nigerian economy. 

2. Globalization will enabled firms to specialize – and to increase the intensity of R&D, innovation and capital in their output.

3. It will break the trade restriction barriers and increase access to fundings and foreign investors for startups.

4. Globalization will break the gene of monopoly in many industries and sectors and make it easier for new companies to start competing with old incumbents.

5. The trade sector will increase the number of people that it employs, both through exports and imports.

6. Globalization will give consumers more “bang for their buck” by reducing the high inflation rates in the economy.

7. Globalization will increase real wages by lowering the cost of consumption.

8. Globalization will improve the quality of management in firms and the working conditions for people.