Nigeria International

Business

Students: Nour Wafai

Muna Al-Ashmori

Hawazen Mishaal

Ayah Zayed

Introduction

Nigeria has the largest

population in Africa

Has the second largest

stock market

Has one of the fastest

growing economy in

Africa

Location

Nigerian Flag

It consists of three vertical stripes.

The right and the left stripes are green

The middle stripe is white

Economic

GDP:

Unemployment

Income Distribution

Financial

Interest rates: the Monetary Policy decided

to hold the interest rates at 12 percent.

1 Nigerian Naira equals 0.0063 US Dollar

Exchange Rates

Inflation

Taxes

Corporate tax rate

VAT

Balance of Payments

External Debt

“Nigeria owes $6.67 billion external debt”

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.

MUSIC & ART

Ekwe

Socio-cultural

Flute Ogene

Adire Painting Reverse Applique

Batik Wall

Hanging

Embroidery Weavings

Brass and copper Carving

Rice paper

Dancing

Drummers Stone work

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

Future Expectation

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

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