In this report, Daniel Obi writes on how an entrepreneur is galvanising the private sector for sports development through provision of facilities for youth engagement, benefits to companies and government.
Globally, sports is a big industry with huge revenue and tax generation for government. It is also a tool for nation branding and engagement platform for bubbling youth population.
Some countries are reaping from this sector big time. For instance, reports say the English Premier League (EPL) is broadcast to one billion homes in 188 nations and supports close to 100,000 jobs in the UK, generating broadcast revenue of about three billion pounds per season. This is apart from ticket and commercial revenues both estimated at over two billion pounds in 2018/2019 season.
Today, EPL has the biggest followership in Nigeria but is not sure EPL has investment in Nigeria.
Creating sporting economy in Nigeria
Just like the telecom sector which contributed 12.5% to GDP in 2020 and the entertainment industry which contributed 2.3% to GDP in 2017, a sports consultant, Ikemefuna Mordi says that similar to other nations, Nigeria can use sports development to add impetus to social well-being, leapfrog the economy, engage the youth and create positive brand image for Nigeria.
Nigeria is presently battling youth restiveness, perhaps occasioned by high unemployment at 28 percent, low economic growth at 2.2% (2019) and non- development of sports that can contribute significantly to GDP.
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Mordi who is Lead Partner at Desarrollar Limited, a Sports Consulting and Real estate Company located in Lagos, Nigeria fears that if a sector like sports, which has assumed a corporate religion in Nigeria and can occupy the youth is not developed, the economy may continue to remain stagnant and insecurity may be worse as Nigeria’s population grows.
It is estimated that Nigeria will have a population of 234 million in 2025 from the present 200 million. In 2040 the population will be 460 million. About 60 percent of this population is youth based with most of them unemployed.
Sports worldwide is a multi-billion Naira industry. The question is why is this not happening in Nigeria with huge population. Why has Nigeria not been able to replicate what has happened in other climes, Mordi who has travelled widely wonders.
Describing sports as untapped goldmine, Mordi who served as the pioneer CEO at International Sports Management Africa Limited (ISMA) said Nigeria has not been able to tap from sports because sports has not been packaged as a business but as a cost center.
According to him, Sport needs to be productised and monetised. Sport needs to be sold as a product whether it is football, athletics, tennis etc. Mordi, a former banker regretted that over the years, the industry has not been packaged as a product to make it attractive for the organised private sector to invest in as government is not well suited to support sports.
Mordi who possesses an understanding of consumers and consumer markets across regions within the African markets said sports needs to be attractive as a marketing tool for the OPS to fund it. It is that funding that will allow sports to grow, attract global patronage, it is that funding that will attract the youth to sports.
How Desarrollar is pushing for critical intervention
Over the years, sports has been funded by government and through cash donations by the private sector. This method has not guaranteed enduring sporting facilities.
Often times, facilities from government funds are poorly built and poorly maintained with intention to change them as government usually awards contracts with poor supervision. The poor facilities have negative impact on talent development for local and global competitions. Also they discourage foreign collaborations.
But Desarrollar in conjunction with some partners is galvanising the private sector with attempt to promote sports as a business, create the opportunities, highlight them and make sports attractive enough for private sector participation and reap the benefits therefrom.
‘’Imagine companies taking up varsity facilities and put their brand and logo on them. Even do this within the military and police formations. The brands can grow their marketbase by doing this.
“When most top sectors are galvanised to support sports by taking different sport initiatives like provision of pitches and other facilities we will be able to develop talents, attract foreign patronage”.
Mordi believes that once the facilities are institutionalised and maintained, it will become bedrock for talent discovery and also serve as edu-sports that can churn out world-class talents.
Under the relationship with organisations for provision of sports facilities, Mordi said a system has been put in place that guides the relationships including legal backing and appointment of reputable trustees who warehouse whatever fund for facility development. There are other partners that ensure that work done is upto standard. He said the system will guarantee that every kobo spent by OPS is worthwhile.
The intention of Desarrollar and partners is to shift the private sector’s mind away from just donating money to sports bodies to becoming self-participatory in sports development through provision of facilities and get value from it. It is also believed that as they do this, the OPS will likely get tax relief as the activities are community based.
