Why Tinubu needs sports economy on front burner

BY KENNETH ORUFUO EZAGA

Kenneth Orufuo Ezaga, host of the radio programme, Sports Business with Orufuo Ezaga, on Lagos Talks FM 91.3 is the managing director, Tennis Management Company Limited, Lekki, Lagos and can be reached via comment@businessamlive.com

The thriving global sports economy is one Nigeria can no longer afford to ignore, especially at a time when the country faces a burning need to diversify its economy and the debilitating social costs of low youth engagement in the shape of high crime rates, low employment, population explosion, poor societal values, unhealthy lifestyles and low life expectancy, as well as a growing culture of ruthless and unfair competition.

The sports industry, if developed, can mitigate these ills while driving economic activity across multiple sectors. Progressive civilisations have deployed sports for thousands of years to clean up society and inspire citizens to aim for the best versions of themselves.

Underpinning the modern industry, though, is money. Once a by-product of competitive sports, economic value has become the bedrock of the industry projected to be worth around $700 billion worldwide by 2026, according to Statista.com.

Africa, typically, is lagging far behind, and sub-Saharan Africa even more so. Our societies have become posters for the ills in countries that fail to prioritise sports. Nigeria is a fine example: millions of children out of school are getting educated in crime on our streets. There’s also deep polarisation of its peoples, poor regional planning, unhealthy lifestyles, and low pride in our communities and country.

This is why President Bola Tinubu must embrace the smart economics and socio-cultural benefits of sports. Failing this would mean that whatever goals he aims to achieve would ultimately be degraded by the socio-cultural problems plaguing sports-less countries like ours.

Sports contributes handsomely to the gross domestic product (GDP), and creates even more jobs. A 2020 European Union (EU) study showed that sports accounted for 2.12 percent of GDP and three percent of employment in the region. Austria led with sports accounting for 4.12 percent of GDP and 5.63 percent of employed persons.

By contrast, sports contributes just about 0.005 percent to Nigeria’s GDP, former statistician general of Nigeria, Yemi Kale, said in 2020. When you consider that Nigeria’s 2021 GDP was put at $440 billion by the World Bank, sports may well have contributed (N3 trillion – N4 trillion) – at 1% – to our GDP).

The dynamics are certainly in place for Nigerian sports, like our music and movie, to become a business force globally. First, there’s the 220 million-strong population that makes for high value sponsorships, media rights and match-day commercial activities.

Second, is our continental influence which ensures that success locally guarantees continental acceptance and popularity, potentially scaling up our audience to almost a billion people in Africa alone.

Third is that we have an economy strong enough to build a sport business foundation capable of attracting major foreign investments and revenues, again, as has been the case with our music, movie and tech industries.

Lastly, we have sporting pedigree. Even without proper structures and systemic support, Nigeria has consistently produced top global athletes across different sports, especially in football and athletics.

To fix the industry, the government must look beyond the sports ministry and federations that are seen as deeply corrupt and incompetent, thus have little or no credibility with the public and Business Nigeria. Government needs to learn from the CACOVID example and facilitate the setting up of a crack private sector-led team to drive sports reforms.

Leading this initiative must be a stellar cast of Nigerians who cannot be bamboozled by the deeply entrenched corrupt interests holding down the industry today. Corporate titans like Tony Elumelu, Atedo Peterside, Fola Adeola, Aig Aig-Imoukhuede, Aliko Dangote, Abdul Samad Rabiu and Femi Otedola, should be willing to lead the sanitisation of an industry extremely vital to society and one that would further endear them to Nigerians.

They would need to focus on sports that Nigerians are capable of excelling in and those popular with audiences around the world. Priority must also be given to sports that are great for television and streaming, because that is where the real money is. Sports like football, athletics, basketball, cricket, boxing, swimming and tennis.

The body would need to be bullish. It is almost impossible to build major sporting properties organically today. Sports business in Nigeria would make for an attractive business proposition to local and international investors. There would be a need for long-term financing from special government provisions and international organisations like the AfDB, the World Bank and even investment managers in the Middle East.

Those that understand the power of the Nigerian brand know that Nigeria is box office. There is not a single global sports body or media network with an eye on Africa that would not want to partner Nigeria when we are serious.

Sports has been tried and tested across all cultures for ages. The template is out there and accessible to everyone. All we have to do is copy. The Tinubu government must act to wake up this beast of an industry if it truly desires to build a progressive country.