Why Nigerian businesses must prioritise local production and talent development, by Osiyemi

 

From raising N7 billion in a week to navigating inflation, currency depreciation and a widening skills gap, Tayo Osiyemi, CEO of SKLD Integrated Services Limited, believes that credibility not capital is the foundation of sustainable business growth. In this interview with KENNETH ATHEKAME, he shares lessons from scaling SKLD into a diversified enterprise, the importance of trust in attracting investors, and why Nigerian businesses must prioritise local production and talent development to remain competitive. Excerpts:

You studied Chemical Engineering but built your career in business strategy and enterprise growth. How did that transition happen?

My transition began when I joined a consulting firm, Nexon Business Services. Consulting exposed me to business strategy, corporate finance, governance, and organizational development. It gave me a front-row seat to how successful businesses are built and funded. That experience fundamentally shaped my understanding of value creation and prepared me for leadership roles in the private sector.

Access to capital remains one of the biggest challenges for Nigerian businesses. What do entrepreneurs often get wrong about fundraising?

Many entrepreneurs think raising capital is about pitching for money. It isn’t. Fundraising is about demonstrating value and speaking the language of investors. Investors want evidence, not promises. They want to see strong records, clear financials, and a credible growth story. Every investment decision is ultimately validated through due diligence.

Where should entrepreneurs look for their first source of capital?

The first investors are usually family, friends, and close associates. They invest because they trust you, not necessarily because they fully understand your business model. If you can build credibility within your immediate circle, it becomes easier to attract institutional investors later. Trust is often the first form of capital.

How important is trust in today’s business environment?

Trust is a critical business asset. It is built through consistency, integrity, and reliability over time. In many large transactions, reputation can be as important as collateral. At SKLD, we successfully raised N7 billion through a commercial paper programme within a week because the market trusted our track record and our commitment to meeting obligations.

Despite being a 25-year-old company, SKLD is often described as having a startup mindset. How do you maintain that culture?

We continuously explore new opportunities across education, ICT, humanitarian services and distribution. A startup mentality means remaining innovative, agile and customer-focused irrespective of the company’s age. Every interaction with a customer is an opportunity to build or lose trust, and we never lose sight of that reality.

What role should industrialists play in shaping Nigeria’s economic future?

There must be constructive engagement between the government and the private sector. Businesses operate within policy environments, and those policies can either stimulate growth or hinder investment. The Dangote Refinery is a good example of how industrial ambition and policy support can combine to strengthen national economic security.

How has SKLD managed Nigeria’s recurring economic shocks, particularly inflation and naira depreciation?

We responded by reducing dependence on imports and increasing local sourcing through backward integration. We also focused on sectors that remain essential regardless of economic conditions, particularly education and humanitarian services. People may postpone discretionary spending during difficult periods, but education and relief interventions remain necessary.

Your career trajectory reflects a deep understanding of business and economic issues. What shaped that perspective?

Consulting played a major role. Beyond that, completing an Executive MBA at Lagos Business School expanded my strategic thinking. I also maintain a disciplined habit of reading newspapers, economic reports and financial data. Business leaders must continuously learn because economic realities are constantly evolving.

SKLD has grown from a relatively small business into a multi-billion-naira enterprise. What lessons have you learned about scaling?

Growth begins with ambitious targets. When I joined the company in 2013, we set a goal of reaching N1 billion in revenue within five years. We achieved it. More recently, we grew revenue from N3.7 billion to nearly N8 billion within a short period. Businesses grow when leaders challenge conventional thinking and create shared ownership of goals across the organisation.

Employers frequently complain about a shortage of skilled workers. What is your assessment of the talent market?

The skills gap is real and significant. Companies must stop assuming they can recruit fully developed talent from the market. Training should be viewed as a strategic investment rather than a cost. Organisations that consistently build talent pipelines are better positioned for sustainable growth and competitiveness.

SKLD has become known for its humanitarian and educational initiatives. Why is social impact important to your strategy?

We see ourselves as a social-impact business. Beyond commercial activities, we support humanitarian interventions across northern Nigeria, including Maiduguri, Yobe and Sokoto. Through partnerships, we have trained more than 5,000 teachers in inquiry-based learning methodologies. Business should create value for shareholders while also contributing meaningfully to society.

SKLD evolved from School Kids Limited to a diversified services company. What informed that rebranding?

The original name reflected where we started, but as the business expanded into new sectors, it became limiting. SKLD now represents a broader vision built around strategic intent, learning, innovation and data-driven operations. The rebranding reflects our evolution from a retail-focused company into an integrated services organisation.

What is your long-term vision for SKLD?

Our goal is to become a $100 million company within the next five years, with operations across Nigeria, other African markets and the United Arab Emirates. We will continue expanding our business units while strengthening our presence in education, corporate solutions, distribution and humanitarian procurement. The ambition is not simply to grow bigger, but to build an institution that creates lasting value across multiple markets.