What do you think are the advantages of doing business in Nigeria? Doing business in Nigeria is characterized by both advantages and disadvantages which should not be overlooked. With the current trend of things in the country, the pros outweigh the cons. This is evident in the 2018 World Bank Doing Business in Nigeria
which ranks Nigeria 145th position out of 190 countries moving up 24 points from 169th position in 2017.
In this article, I am going to briefly highlight the advantages of doing business in Nigeria.
What are the Advantages of Doing Business in Nigeria?
High population growth
A country with a growing population of over 180 million citizens with little available means of sustaining her demands is definitely a place for you to do business. With this population the country has very few companies, industries and enterprises to supply the demands of her citizens ranging from food, shelter, energy, transportation, labour market, etc, the list is inexhaustible. As long as the business satisfies a need in the country and the strategies adopted are right, success is assured.
Nigeria is one of those countries in Africa that has a wide variety of different natural resources. Nigeria is richly endowed with a variety of Natural Resources ranging from precious metals various stones to industries such as Barites, Gypsum, Kaolin and Marble. Most of these are yet to be exploited. Statistically, the level of exploitation of these minerals is very low in relation to the extent of deposit found in the country.
Fast Growing Financial Sector
The financial sector in Nigeria has experienced robust growth over the past few years. Over the years, FinTech has grown beyond money transfer platforms. It has expanded to include many forms of technological innovation in the financial sector. FinTech innovations have changed the way we do business and see (or don’t see) money.
A number of solution-providing startups
in the financial sector have been founded over the past few year. There are well-developed banking and financial sector. The investor has easy access to working capital and other credit facilities.
Increasing Consumer Base
More than 62% of Nigeria’s population is under 25 and its growing middle class makes up 23% of the population. With Nigeria’s growing young population, the demand for education services is increasing faster than the government can supply it. The turnover from the tertiary institutions into the labour market is also increasing hence, increased workforce. With Nigeria importing almost all its consumable, investing in the country’s economy and leveraging on the workforce and the available market will go a long way to support business growth.
Free Market Economy
The Government has created a favourable climate for business and industrial ventures. Administrative and bureaucratic procedures have been greatly streamlined. The Government has put in place policies and programmes that guarantee a free market economy.
For more than 3 decades, the country’s economy has been solely dependent on oil. Nigeria is a country blessed with numerous natural and human resources, but these resources are not utilized. The fall in the oil price has drastically reduced the revenue generated in the country hence, the eye-opener for all quarters to diversify. The birth of numerous tech startups, eCommerce marketplace, etc in the country is a typical example of what the Nigerian market has to offer.
The Nigerian Government has put in place a number of investment incentives for the stimulation of private sector investment from within and outside the country. While some of these incentives cover all sectors, others are limited to some specific sectors. A comprehensive package of incentives
has been put in place to attract investment.