Introduction
Nigeria has the largest
population in Africa
Has the second largest
stock market
Has one of the fastest
growing economy in
Africa
Nigerian Flag
It consists of three vertical stripes.
The right and the left stripes are green
The middle stripe is white
Political Nigeria is a federal republic currently under a
strong presidential administration. It has 36 administrative divisions known as states. Each of the states is divided into local governments. Thus, Nigeria has 3 tiers of government: national, state, and local.
Federal government.
Democratic since 1999.
One power political party and other small weak parties.
Membership United Nations and several of its special and related
agencies (UN)
Organization of Petroleum Exporting Countries(OPEC)
Economic Community of West African States (ECOWAS)
Organization of African Unity (OAU) - now African Union [AU]
Organization of African Trade Union Unity(OATUU)
Commonwealth, Non-Aligned Movement, several other West African bodies
The Babangida regime joined the Organization of the Islamic Conference (OIC), now the Organization of Islamic Cooperation.
World Trade Organization (WTO)
• STARTING UP
Incorporated under Nigerian law.
Register with the NIPC.
• OWNERSHIP foreigners are allowed to wholly own any enterprise.
Foreign can fix the prices at which they want to buy into private Nigeria securities.
Nigerian Foreign
Investment
• OPERATING LICENSE
Approvals are required on certain enterprises and/or
licenses to operate.
• ARBITRATION
Nigeria’s business
laws are based on the
English law.
The language of the courts is English.
The court system is
“adversarial”
There are no juries.
• REMITTANCES
Foreign investors are free to bring in/out capital, and
they are free to repatriate the income and capital
proceeds on such capital.
•TECHNOLOGY (TRANSFER AND PROTECTION)
Agreement for the use of foreign know-how, patents,
copyright, trademarks, trade secrets and “transfer of
technology” agreements.
Regulated in two ways: 1- These agreements have to be registered with the National Office of Technology Acquisition and
Promotion.
2- That office can refuse registration.
• NO LIMITS TO FOREIGN SHARE HOLDING
Effectively, the Nigerian Enterprises Promotion has
cancelled any restrictions.
The official language is English.
There are more than 500 indigenous languages spoken in Nigeria.
Other languages: Edo
Efik
Fulani
Adamawa Fulfulde
Hausa
Idoma
Igbo (Ibo)
Central Kanuri
Yoniba
Yoruba.
Languages
Islam, 50%
Christianity
, 40%
The remaining 10 % committed to
indigenous beliefs (animism).
The remaining committed to indigenous
beliefs , 10%
• “In its 2006 Report
on Human Rights
Practices in
Nigeria, the U.S.
State Department
noted that private businesses
frequently
discriminated on
the basis of religion”
Religion
29%
21% 18%
10%
4% 3.50% 2.50%
0%
5%
10%
15%
20%
25%
30%
35%
more than 250 ethnic groups.
Hausa and Fulani in the north Yoruba in the southwest
Igbo (Ibo) in the east Ijaw in the Niger Delta
Kanuri Ibibio
Tiv
Ethnic Groups
• Technology
Recently Nigeria has been implemented the
industrialization for example, It has an indigenous
vehicle manufacturing company.
Nigeria also has few Electronic manufacturers.
In order to encourage local manufacturing companies in the country, In 2013 Nigeria introduced
a policy regarding import duty on vehicles.
the largest manufacturer of cement in Africa is
Nigeria.
they manufactured textiles, home tools, and plastics.
Materialism
Power distance
The highest degree among this dimension is.
High power distance its score is 80%
individuals in societies are not equal which will
influence the attitude of the culture
Hierarchical order
Inherent inequalities
Centralization
Expect from the subordinates to be told what to do
Individualism
Reflecting the degree of interdependence
As the score is 30% it considered collectivistic society where people belong to ‘in groups’ that take care of them in exchange for loyalty.
high level of commitment
Extended family and extended relationships.
Everyone takes responsibility
The relationships between employer/employee like a family link
Masculinity
A high score 60% (masculine) means
competition, achievement and success will be
driven in Nigeria
A low of feminine score means caring for
others and quality of life. The fundamental issue
the preference between genders. As a result
lost women right.
manager will expect from masculine people to be decisive and assertive “live in order to work”.
Uncertainty avoidance
The way of how to deals with the future fact should
The extent of feeling threatened by ambiguous or unknown situations
Creating beliefs to try to avoid these
It score 55% which does not show a clear
Nigeria ranked in 2013 the 7th highest population in
Africa with a number of 173,611,131 which is 2.5% of
the total earth population.
Socioeconomic
43.80%
19.30%
30.10%
3.80% 3%
0-14 years(male 39,127,615/female 37,334,281)
15-24 years (male 17,201,067/female 16,451,357)
25-54 years
55-64 years (male 25,842,967/female 26,699,432)
65 years and over (male 2,390,154/female 2,840,722)
Age Structure
Total dependency ratio: 89 %
Youth dependency ratio: 83.8 %
Elderly dependency ratio: 5.2 %
Median age:
Total: 17.9 years
Male: 17.4 years
Female: 18.4 years
Dependency Ratios
This chart shows that the growth in the number of skilled labour
in the last decade would ease foreign Companies to employee
skilled labour with lower cost.
70%
20%
10%
Labour Skills
Agriculture
Services
Industry
Nigeria Labor force
• Nigeria receives the largest amount of foreign direct
investment in Africa
• The activities of these multinationals in Nigeria have primarily
been in the oil and gas sectors, but they are also increasingly
involved in trade, banking and insurance among others.
• Involvement in the manufacturing sector has been limited.
Companies Industry NNPC Oil & Gas
MTN Telecommunication Multinational
Shell Petroleum Development Company (SPDC) Oil & Gas Multinational
Chevron Oil & Gas Multinational
Mobil Oil & Gas Multinational
Nestlé Nigeria FMCG Multinational
Competitive Analysis
When any company wants to open a new business in
Nigeria they should be aware of their culture and tradition to be able to accommodate with this
country.
In Hofstede's study, man who has the power therefore
business should now how to reach to those man.
additionally, in Nigeria they have extended family as
a result business should adjust their product according
to that. As they have high level of power distance so
business should now how to deal with that and give
the power to the boss.
As Nigeria has many language but the official one is
English therefore business must use the English
language.
Recommendation
The positive population growth rate and the highest
population of people less than 14 years indicate an
opportunity for the foreign companies to target this
people. Majority of the young population are
interested in the new products and are keen to buy
from multinational company’s products.
Foreign businesses will benefit if they invested in density cities, because the product distribution and
communications with customers are simpler and
profitable.
Nigeria is a good country to invest in because of its, GDP, inflation, interest rate and taxes but they have to
consider debt as a risk to them and work on it to decrease it.
Recommendation
Nigeria is the best country in Africa to invest in
because of the following:
1- A large and competitive domestic market with high
unmet demand for basic goods and services
2- A growing and increasingly sophisticated
middleclass
3- Untapped abundant natural resources
4- A large and flexible workforce
5- A population that is innovative and entrepreneurial
Conclusion
EzeUche. Nairaland Forum. Population Density Of Nigeria. N.p., 3 Apr.
2011. Web. 1 May 2014.
http://www.nairaland.com/637694/population-density-nigeria
Itim. THE HOFSTEDE CENTRE. Nigeria. N.p., n.d. Web. 1 May 2014.
http://geert-hofstede.com/nigeria.html
Nigeria Demographics Profile 2013. Nigeria Demographics Profile 2013.
N.p., 21 Feb. 2013. Web. 30 Apr. 2014.
http://www.indexmundi.com/nigeria/demographics_profile.html
Nigeria Population. TRADING ECONOMICS. N.p., n.d. Web. 1 May 2014.
http://www.tradingeconomics.com/nigeri
Nike Centre: Adire cloth, batik, indigo, beadwork, painting, carving,
embroidery, drumming, dancing, metalwork, weaving. N.p., n.d. Web.
1 May 2014. http://www.nikeart.com/arts.htm
Nigeria Trading Economics retrieved from
http://www.tradingeconomics.com/nigeria/gdp
References
Emma Ujah, 2013. Nigeria owes $6.67 billion external debt retrieved
from http://www.vanguardngr.com/2013/06/nigeria-owes-6-67-billion-
external-debt-says-okonjo-iweala/#sthash.egC5gGgX.dpuf
Nigeria Economic Report 2013 by the world bank. Retrieved from
http://www-
wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/201
3/05/14/000333037_20130514101211/Rendered/PDF/776840WP0Niger0
Box0342041B00PUBLIC0.pdf
http://data.worldbank.org/indicator/BN.CAB.XOKA.GD.ZS
http://www.tradingeconomics.com/nigeria/net-capital-account-bop-
us-dollar-wb-data.html
http://data.worldbank.org/indicator/BN.RES.INCL.CD
http://www.tradingeconomics.com/nigeria/corporate-tax-rate
http://www.nigeriasite.com/vat.html
References