Finance
Why Returning to Nigeria Could Be Your Path to Entrepreneurial Success
A Leap of Faith to Find Purpose
Imagine walking away from a six-figure Wall Street job, a vibrant life in New York, and a promising career to return to Nigeria—a place you haven’t lived in as an adult. Sounds daunting, right? Yet, that’s exactly what Yomi Jimmy Baron did. After years in the U.S., with degrees in engineering, an MBA from Wharton, and a Wall Street job, he felt unfulfilled, disconnected, and tired of wearing a corporate mask. His solution? Return to Nigeria in 2007 to co-found Cardinal Stone Partners, a leading private equity firm now managing over $250 million in assets. Yomi’s story isn’t just about building businesses in Nigeria; it’s about finding purpose, embracing resilience, and seizing African business opportunities. Whether you’re a diaspora Nigerian contemplating a return or an entrepreneur eyeing Nigeria’s dynamic market, Yomi’s journey offers inspiration and practical lessons. Let’s explore why returning to Nigeria could be your path to entrepreneurial success.
The Call to Return: Why Nigeria Beckons
Yomi’s decision to return wasn’t driven by a grand plan to transform Africa. It was deeply personal. After 13 years in the U.S., he felt miserable despite his achievements. “I was tired of acting,” Yomi shares, describing the pressure to conform in corporate America. He longed to be his authentic self and connect with his roots. Nigeria, despite its uncertainties, felt like the place to find that fulfillment.
The Pull of Home
For many Nigerians abroad, there’s a term for this longing: ofili, the love for home. Yomi’s story resonates with diaspora professionals who feel a tug to return, even if they’re successful elsewhere. Nigeria’s economy, despite challenges, is brimming with potential. From telecoms to tech, sectors are evolving, and Nigerians abroad bring skills, global perspectives, and networks that can fuel growth.
- Why Nigeria? It’s Africa’s largest economy, with a population of over 200 million and a growing middle class hungry for quality products and services.
- Cultural Connection: Returning allows you to align your work with your identity, creating a sense of purpose.
- Impactful Opportunities: Unlike saturated Western markets, Nigeria offers untapped niches where your ideas can make a difference.
Not Everyone Needs to Move Back
Yomi emphasizes that returning doesn’t mean relocating permanently. Thanks to remote work, you can engage with Nigeria’s market from anywhere. Serve on a board, mentor startups, or invest in Nigerian businesses. The key is to act on that yearning for home in a way that fits your life.
Overcoming Challenges: Building in a Dynamic Market
Nigeria’s business landscape is not for the faint-hearted. Yomi returned in 2007 during a boom—telecoms were thriving, capital markets were buzzing, and optimism was high. But by 2008, the global financial crisis hit, and Nigeria’s economy froze. Over 17 years, Yomi navigated three economic downturns, each teaching him resilience. His advice? Embrace challenges as opportunities to innovate.
Navigating Economic Cycles
Economic downturns are inevitable, but they’re also proving grounds for resilient entrepreneurs. Yomi’s firm, Cardinal Stone, started during a downturn, forcing them to build lean and smart. This resilience paid off. For example, when COVID-19 shut down gyms, Cardinal Stone’s investment in Eye Fitness pivoted to online services and sanitation products, keeping cash flow alive. By the time restrictions lifted, Eye Fitness locations were packed, proving demand for affordable fitness.
- Lesson 1: Conserve Cash: In downturns, prioritize cash flow over expansion. Yomi’s team halted new gym constructions during COVID, preserving resources.
- Lesson 2: Adapt Quickly: Find creative ways to meet customer needs, like Eye Fitness’s shift to virtual offerings.
- Lesson 3: Plan for the Worst: Scenario planning helped Cardinal Stone prepare for worst-case outcomes, ensuring survival.
The Resilience of Nigerian Entrepreneurs
Yomi believes Nigeria breeds some of the world’s most resilient business managers. Running a business here means battling government policies, regulators, and infrastructure challenges—all while delivering value. This doggedness, seen in Nigeria’s music, fashion, and tech scenes, is a global asset. “If you manage a mediocre business here, you’ll kill it in other markets,” Yomi says. Returning entrepreneurs can leverage this resilience to build businesses that thrive despite obstacles.
Private Equity Power: Fueling African Growth
Yomi’s work with Cardinal Stone Partners showcases the power of private equity in scaling African businesses. Unlike venture capital, which often bets on early-stage startups, private equity focuses on established companies with growth potential. Cardinal Stone has invested in diverse sectors—fitness, healthcare, maritime, and tech—helping businesses like Eye Fitness grow from 2,300 to 27,000 subscribers in under four years.
Why Private Equity Matters
Private equity provides more than just capital. It offers strategic guidance, operational expertise, and market insights. For Yomi, it’s about backing entrepreneurs who share a vision and are open to collaboration. Cardinal Stone’s portfolio includes a cassava plantation, a granite quarry, and a plastic recycling business, proving that opportunities in Nigeria span beyond tech.
- Structured Growth: Private equity firms like Cardinal Stone help businesses standardize processes, making them attractive to global investors.
- Local Expertise: Firms with deep market knowledge can navigate Nigeria’s complexities, from regulatory hurdles to cultural nuances.
- Impactful Investments: By focusing on market-creating innovations, private equity drives economic growth and job creation.
Collaboration Over Competition
Yomi stresses collaboration in the investment ecosystem. “We need more fund managers,” he says, advocating for partnerships between private equity and venture capital. This approach ensures businesses get the right support at different growth stages, maximizing their potential.
Case Study: Scaling Eye Fitness in Nigeria
One of Cardinal Stone’s standout successes is Eye Fitness, a low-cost gym chain that transformed Nigeria’s fitness landscape. When Yomi’s team invested, Eye Fitness had five locations and 2,300 subscribers. By the time they exited, it had 21 locations and 27,000 subscribers, achieving its growth targets in half the planned locations.
Identifying the Opportunity
Yomi saw potential in Eye Fitness’s founder, Femi, who was passionate, data-driven, and open to feedback. Unlike traditional gyms charging $2,000 annually, Eye Fitness offered monthly memberships at ~$20, making fitness accessible to the average Nigerian. Yomi’s team worked with Femi to refine the model, increasing gym sizes to lower costs per square meter and enhance the social experience.
Navigating COVID-19
The investment faced a major test when COVID-19 hit, shutting down gyms. Cardinal Stone’s downturn experience kicked in. They conserved cash, paused expansions, and pivoted to online services and sanitation products. When gyms reopened, Eye Fitness locations surpassed pre-COVID revenue by 120%, proving the resilience of its model.
- Key Takeaway: Back founders with vision and humility, and support them through strategic pivots.
- Impact: Eye Fitness became a lifestyle hub, offering affordable fitness and social spaces for Nigeria’s middle class.
Advice for Entrepreneurs: How to Be Investor-Ready
Yomi’s journey offers valuable lessons for entrepreneurs seeking investment. His top tip? Be vulnerable. “If you can’t admit your failures or where you need help, I can’t back you,” he says. Investors like Cardinal Stone look for alignment, humility, and a willingness to collaborate.
Top Tips for Entrepreneurs
- Be Transparent: Share your mistakes and lessons learned. Investors value introspection.
- Show Data: Eye Fitness impressed Yomi with detailed location data, proving operational rigor.
- Align on Vision: Ensure your goals match the investor’s philosophy to avoid conflicts.
- Embrace Structure: Be open to corporate governance, like approval processes and strategic alignment.
- Focus on Local Impact: You don’t need to build a global unicorn. Solve local problems first.
Avoiding Common Mistakes
Yomi warns against overconfidence. Entrepreneurs who act like they “have it all figured out” risk alienating investors. Similarly, ignoring governance can lead to mismanagement, especially when handling institutional capital. By staying open and collaborative, you build trust and attract the right partners.
The African Opportunity: Building for Impact and Profit
Yomi’s optimism about Nigeria’s potential is infectious. “Everybody wants a piece of the good life,” he says, noting that Nigerians, regardless of income, aspire to quality experiences. This drives demand for market-creating innovations—products and services that make the “good life” accessible, like Eye Fitness’s affordable gyms or tech-enabled healthcare.
Unique Opportunities in Nigeria
Nigeria’s market is ripe for innovation due to its size, diversity, and resilience. Yomi highlights several untapped areas:
- Consumer Goods: Affordable, quality products (e.g., gyms, cars, travel) have massive demand.
- Tech as an Enabler: Use technology to lower costs and reach rural markets, like EdTech for village students.
- Talent Pipeline: Nigeria’s dogged entrepreneurs and managers are a global asset, ready to scale with the right processes.
Balancing Optimism with Challenges
While challenges like FX fluctuations and regulatory hurdles exist, Yomi sees them as surmountable. Local pension funds are increasingly investing in Nigerian private equity, reducing reliance on dollar-based funding. By building world-standard businesses, entrepreneurs can attract both local and global capital, creating a virtuous cycle of growth.
FAQs: Your Questions About Returning to Nigeria
Q: Do I need to move back to Nigeria to start a business there?
A: No. You can engage remotely by investing, mentoring, or serving on boards. Physical relocation is just one option.
Q: What are the biggest challenges of building a business in Nigeria?
A: Economic downturns, regulatory hurdles, and infrastructure issues are common, but resilience and adaptability can overcome them.
Q: How can I attract investors like Cardinal Stone?
A: Be transparent, data-driven, and open to collaboration. Show your vision and willingness to learn from mistakes.
Q: Is Nigeria a good place for non-tech businesses?
A: Absolutely. Sectors like fitness, healthcare, and consumer goods offer huge opportunities for market-creating innovations.
Q: Can Nigerian businesses compete globally?
A: Yes, by starting locally and leveraging Nigeria’s talent and resilience, businesses can scale to global markets.
Your Nigerian Adventure Awaits
Yomi Jimmy Baron’s journey from Wall Street to Nigeria is a testament to the power of purpose-driven entrepreneurship. By returning to Nigeria, he found fulfillment, built a private equity powerhouse, and transformed lives through businesses like Eye Fitness. His story shows that Nigeria, with its challenges and opportunities, is a land of possibility for resilient entrepreneurs. Whether you’re dreaming of launching a startup, investing in African markets, or simply reconnecting with home, now is the time to act. Embrace the challenges, leverage Nigeria’s unique strengths, and build something impactful. Your entrepreneurial success could be waiting in Nigeria—will you answer the call?
Ready to explore Nigerian business opportunities?
Visit Cardinal Stone Partners to learn about their work or connect with local entrepreneurs on platforms like X.
Share your thoughts in the comments—what’s holding you back from returning?
