- Employment in Nigeria stands at 35% in 2021, and direct selling contributes to the much-needed diversification of the job market
- Economic experts say it provides a bright future for economic growth among the young population in the country
- The internet and its growth also hold a positive implication for direct selling and its potential to address Nigeria's growing unemployment rate
Lagos - An expert, Biriam Fall has said understanding the potential of direct selling can help address economic and financial challenges, especially for the younger generations.
Fall made this submission at a recent forum to discuss African youth empowerment.
Fall's remarks are based on the latest Direct Selling Report, published by the World Federation of Direct Selling Associations (WFDSA).
The report shows global direct sales increased by 2.3 percent year on year, from US$175.3 billion in 2019 to US$179.3 billion in 2020.
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He pointed out that this leap in direct selling was recorded despite estimates by the International Monetary Fund, indicating a decrease of the global economy by 4.4 percent in 2020 - a period most of the world economies were struggling with rising unemployment.
Based on the positive shift in the sector and projected growth for e-commerce, Fall urged the youth to embrace direct selling as another source of sustainable economic and financial empowerment.
Fall who is also the regional general manager sub-Saharan Africa for QNET - one of the worlds leading international e-commerce-based direct selling companies, said the direct selling model leverages selling products directly to customers without the use of third parties.
“Direct selling is unique from traditional sales because it primarily relies on endorsements, which requires sincere and earnest hard work.
“It removes intermediaries involved in the product distribution chain, like distribution centers or wholesalers. If you are a distributor (i.e. a sales representative) working with a direct selling business, the manufacturer gives you the products directly to ultimately sell to the consumer.
“This builds trust and relationships with people - offering a high level of service and personal attention.”
He added that many businesses and enterprises across the globe use the model to promote unique products and services in categories such as wellness and nutrition, personal and beauty care, and home care products, among others.
According to him, youtha have the potential to become micro-entrepreneurs and nurture sales businesses by becoming official promoters of distributor companies.
While emphasizing the huge potential that direct selling holds, Biram stated:
“Africa currently has the largest youth population in the world. This number keeps growing and has resulted in a highly competitive environment for job searches and limited employment opportunities.
“It is projected that 200 million youths will be added to Africa's workforce in the coming decades, pointing to a need to create more employment opportunities and diversify innovative income streams for them.”
NESG to hold National Economic Dialogue to confront challenges facing Nigerian economy
Meanwhile, the Nigerian Economic Summit Group (NESG) has announced that it will hold a National Economic Dialogue discourse to highlight possible solutions to the myriads of socio-economic problems in Nigeria.
Legit.ng gathered that the National Economic Dialogue will pay particular attention to six critical challenges that the government needs to address urgently.
The challenges include weak and non-inclusive economic growth, macroeconomic instability, infrastructure deficit, human capital deficit and skills gap, national insecurity, and weak economic competitiveness.
Nigeria’s economy increases by 3.40% in 2021, strongest growth under Buhari
Legit.ng had earlier reported that the Nigerian economy for the first time in seven years and under the administration of President Muhammadu Buhari ended the year 2021 with economic growth of 3 percent.
The National Bureau of Statistics released its latest GDP report for the fourth quarter on Thursday, February 17, revealing that Nigeria's economy increased by 3.4 percent in 2021.
According to the report, the GDP also posted a strong recovery of 3.98 percent in the fourth quarter of 2021 — but lower than the 4.03 percent in the third quarter.