President Speech

AN ADDRESS PRESENTED BY:

PROF. S.O. OLADOYINBO – PRESIDENT / CHAIRMAN – Governing Council

Institute of Company and Commercial Accountants of Nigeria

At 2020 Edition of MANDATORY PROFESSIONAL TRAINING PROGRAMME {MPTP}

Held at NECA House, Plot A2, Hakeem Balogun Street,

Central Business District, Alausa – Ikeja, Lagos

On Saturday 10th October, 2020.

 

Governing Council Members,

Credible Certified Company and Commercial Accountants,

Our Grand Patron – The Imperial Majesty – Alayeluwa Oba Lamidi Olayiwola Adeyemi III, The Alaafin of Oyo.

Gentlemen of the Press,

Ladies and Gentlemen.

 

INTRODUTION

On behalf of the Governing Council and Board of Patrons, I welcome you to the 2020 Edition of MANDATORY PROFESSIONAL TRAINING PROGRAMME the essence of which is retraining of each hierarchy of the membership while we deliberate on the way forward for our great Institute.

 

NIGERIA ECONOMIC OUTLOOK

 

  • Macroeconomic performance and outlook

Real GDP growth was estimated at 2.3% in 2019, marginally higher than 1.9% in 2018. Growth was mainly in transport, an improved oil sector, and information and communications technology. Agriculture was hurt by sporadic flooding and by conflicts between herdsmen and local farmers. Manufacturing continues to suffer from a lack of financing. Final household consumption was the key driver of growth in 2019, reinforcing its 1.1% contribution to real GDP growth in 2018.

The effort to lower inflation to the 6%–9% range faced structural and macroeconomic constraints, including rising food prices and arrears payments, resulting in a rate estimated at 11.3% for 2019.

 

  • Poverty remains widespread.

The poverty rate in over half Nigeria’s 36 states is above the national average of 69%. High poverty reflects rising unemployment, estimated at 23.1% in 2018, up from 14.2% in 2016. Low skills limit opportunities for employment in the formal economy. Government social programs—N-Power and other youth empowerment schemes—are meant to address unemployment.

 

  • Tailwinds and headwinds

Real GDP growth is projected to rise to 2.9% in 2020 and 3.3% in 2021. It depends on implementing the Economic Recovery and Growth Plan (2017–20), which emphasizes economic diversification. The central bank of Nigeria’s recent decree that banks hold loan–deposit ratios of 60% bodes well for increasing lending to the real sector. Simultaneously, the retrenchment of government borrowing and easing of the risks of lending to small business could lower interest rates and unlock bank lending to the private sector.

An increase in the value-added tax from 5% to 7.5% to shore up domestic nonoil revenues is welcome, though organized labor and businesses have raised concerns of a potential rise in costs. The government also plans to revisit investment tax breaks.

 

  • Nigeria has many opportunities to transform its economy, particularly in agroprocessing. Special agroprocessing zones could promote agroindustrial development and employment.

But insecurity could deter foreign investors, shrivel the domestic economy, and ultimately dampen prospects for economic growth. High unemployment could create social tensions. Rising public debt and associated funding costs could pose fiscal risks if proposed adjustments are not implemented.

 

PREPARING YOUR BUSINESS FOR A POST-PANDEMIC WORLD

Along with the severe health and humanitarian crisis caused by the coronavirus pandemic, executives around the world face enormous business challenges: the collapse of customer demand, significant regulatory modifications, supply chain interruptions, unemployment, economic recession, and increased uncertainty. And like the health and humanitarian sides of the crisis, the business side needs ways to recover. Ad hoc responses won’t work; organizations must lay the groundwork for their recoveries now.

The management theorist Henry Mintzberg famously defined strategy as 5 Ps: plan, ploy, pattern, position, and perspective. We have adapted his framework to propose our own 5 Ps: position, plan, perspective, projects, and preparedness. The following questions can guide you as you work to bounce back from the crisis.

 

  1. What position can you attain during and after the pandemic?

To make smart strategic decisions, you must understand your organization’s position in your environment. Who are you in your market, what role do you play in your ecosystem, and who are your main competitors? You must also understand where you are headed. Can you shut down your operations and reopen unchanged after the pandemic? Can you regain lost ground? Will you be bankrupt, or can you emerge as a market leader fueled by developments during the lockdown?

We hear of many firms that are questioning their viability post-pandemic, including those in the travel, hospitality, and events industries. We also hear of firms accelerating their growth because their value propositions are in high demand; think of home office equipment, internet-enabled communication and collaboration tools, and home delivery services. Because of such factors, firms will differ in their resilience. You should take steps now to map your probable position when the pandemic eases.

 

  1. What is your plan for bouncing back?

A plan is a course of action pointing the way to the position you hope to attain. It should explicate what you need to do today to achieve your objectives tomorrow. In the current context, the question is what you must do to get through the crisis and go back to business when it ends.

The lack of a plan only exacerbates disorientation in an already confusing situation. When drawing up the steps you intend to take, think broadly and deeply, and take a long view.

 

3.      How will your culture and identity change?

Perspective means the way an organization sees the world and itself. In all likelihood, your culture and identity will change as a result of the pandemic. A crisis can bring people together and facilitate a collective spirit of endurance — but it can also push people apart, with individuals distrusting one another and predominantly looking after themselves. It’s crucial to consider how your perspective might evolve. How prepared was your organization culturally to deal with the crisis? Will the ongoing situation bring your employees together or drive them apart? Will they see the organization differently when this is over? Your answers will inform what you can achieve when the pandemic ends.

 

4.      What new projects do you need to launch, run, and coordinate?

Your answers to the questions above should point you to a set of projects for tackling your coronavirus-related problems. The challenge is to prioritize and coordinate initiatives that will future-proof the organization. Beware of starting numerous projects that all depend on the same critical resources, which might be specific individuals, such as top managers, or specific departments, such as IT. With too many new initiatives, you could end up with a war over resources that delays or derails your strategic response.

 

5.      How prepared are you to execute your plans and projects?

Finally, you need to assess your organization’s preparedness. Are you ready and able to accomplish the projects you’ve outlined, particularly if much of your organization has shifted to remote work? We see big differences in preparedness at the individual, team, organization, and national levels. The resources at hand, along with the speed and quality of decision-making processes, vary greatly, and the differences will determine who achieves and who falls short of success.

We have created a worksheet around the five strategic questions. It can help you plot your current and future moves. Be aware that consumers will remember how you reacted during the crisis. Raising prices during a shortage, for example, could have a significant effect on your customer relationships going forward.

The coronavirus has had unprecedented impacts on the world — and the worst is yet to come. Companies must act today if they are to bounce back in the future. Doing so will help the world as a whole recover — and, we hope, become more resilient in the process.

 

WEBSITE

Am glad to inform you that the Institute will Lunch her Modern Website today – {www.iccaofnigeria.com}

 

PAPER PRESENTATION

The Research paper to be presented at this MPTP is titled “STIMULATING SMEs RECOVERY AND GROWTH IN POST PANDEMIC ENVIRONMENT”. The paper will be delivered by Professor A.O. Olofintila NCE, ACIS, ASCA, MPA, MED, PhD. He is an Erudite Scholar and a Member of Board of Patron; we envisage that the session will be exciting and highly rewarding to the attendes.

 

CONCLUSION.

I seize this medium to appreciate the Board of Patron, Particularly Dr High Prince Leye Babalola for his huge support for the Institute. May the favour of God abounds on them always. I also register my words of appreciation to the Governing Council Members , Registrar, Executives, Fellow and Associates Members of our great Institute for their support at different times. On this note I declare this MPTP open and wish you a profitable learning session.

 

Thank you for your attention.

 

Professor S. O. Oladoyinbo

President/Chairman of Council.

 

References

Chakravarthy, BS (1986)

Measuring Strategic Performance, Strategic Management Journal 7, 437-458

 

Coursaris.C.  & Hassanein. K. (2017).

Understanding e-Commerce: A consumer –centric Model. Quarterly Journal of Electronic Commerce, 3(3), 247-271.

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