Government has no obligation to support businesses, says Sijibomi Ogundele

Sijibomi Ogundele, the managing director of Sujimoto Group, says the government has no obligation to support businesses.

He stated this in an open letter written to President Bola Tinubu and issued to newsmen on Saturday in Lagos.

Sijibomi cited the instance of Steve Jobs raised over a million dollars from the garage of his house through the use of his intellectual collateral, not a property, to develop the largest technology company and the biggest firm in the world today by market capitalization.

The real estate businessman also stated that the multi-trillion-dollar vision with a backbone of public research funding from the U.S. government was achieved based on the national importance of driving innovation and as a sign that government’ investment and its initial leg into great companies do not only present tax benefits but also profit the entire ecosystem.

While stating that government creates greatness, Ogundele said there is no greater and more fascinating story than a flourishing economy that thrives on innovative businesses, adding that intentional support for subsidising businesses and dreams is a strategic and intelligent to do as a nation.

“In 1978, Steve Jobs raised over a million dollars from the garage of his house through the use of his intellectual collateral, not a property, to develop the largest technology company and the biggest firm in the world today by market capitalization,” Ogundele said.

“The multi-trillion-dollar vision with a backbone of public research funding from the U.S. government was achieved based on the national importance of driving innovation and as a sign that government’ investment and its initial leg into great companies do not only present tax benefits but also profit the entire ecosystem.

“Government creates greatness. In fact, renowned industrialists like John D. Rockefeller, Cornelius Vanderbilt, and Sakichi Toyoda, among a host of other business magnates who received firm governmental support, have today created empires that provide jobs for millions of people globally.

“Your excellency, there’s no greater and more fascinating story than a flourishing economy that thrives on innovative businesses. Thus, intentional support for subsidising businesses and dreams is a strategic and intelligent to do as a nation.” He said.

Dr. Sijibomi narrated that no start-up or entrepreneur can raise one naira in pre-seed funding without having to provide an arm and a leg in Nigeria today; hence, he demanded for physical collateral that cripples’ revolutionary ideas and quenches the visionary flames of entrepreneurship.

According to him, With over 200 million citizens and a pregnant economy that must be delivered through the surgical needle of proper restructuring, the Nigerian business landscape must recover from its 77 percent year-on-year funding decline, a sharp fall from the $2 billion that the startup ecosystem attracted between July 2021 and June 2022 to $470 million in the last year (July 2022 to June 2023).

Dr. Ogundele told Pres. Tinubu that the hikes in food prices and transportation are slowly eating deep into the moral fabric of society as the economy continues to find its feet.

The Czar noted that uncommon entrepreneurs are forced to explore new terrains with the Jakpa syndrome, where countless of Nigeria’s brightest minds seek opportunities elsewhere, away from their homeland.

Dr. Sijibomi said even companies with over 100 employees are being forced out of business or in debt due to a series of negative funding, adding that an employee who earns N200,000 as a monthly salary today still struggles with the skyrocketing cost of living, which takes up more than 70 percent of the income.

Dr. Ogundele noted that this influences the decision of such staff to seek alternative ways of surviving while living in debt, even before salaries are paid (if paid on time or even ever paid after 3 months).

“In Nigeria today, no start-up or entrepreneur can raise one naira in pre-seed funding without having to provide an arm and a leg.

“A demand for physical collateral that cripples’ revolutionary ideas and quenches the visionary flames of entrepreneurship.

“With over 200 million citizens and a pregnant economy that must be delivered through the surgical needle of proper restructuring, the Nigerian business landscape must recover from its 77 percent year-on-year funding decline, a sharp fall from the $2 billion that the startup ecosystem attracted between July 2021 and June 2022 to $470 million in the last year (July 2022 to June 2023).

“Asiwaju, as the economy continues to find its feet, the hikes in food prices and transportation are slowly eating deep into the moral fabric of society.

“Uncommon entrepreneurs are forced to explore new terrains with the Jakpa syndrome, where countless of Nigeria’s brightest minds seek opportunities elsewhere, away from their homeland.

“Even companies with over 100 employees are being forced out of business or in debt due to a series of negative funding. An employee who earns N200,000 as a monthly salary today still struggles with the skyrocketing cost of living, which takes up more than 70 percent of the income. This influences the decision of such staff to seek alternative ways of surviving while living in debt, even before salaries are paid (if paid on time or even ever paid after 3 months.