Access Africa Exporting To NIGERIA
Going GlobalAccess AfricaExporting toNIGERIAA guide for clients#GlobalAmbition
HomeWhy Export to NigeriaKey Opportunities in NigeriaGet Ready to Do Business in NigeriaThings to ConsiderLegal and Taxation InformationHelping You Win in NigeriaContact UsReferencesGoing GlobalNigeria at a Glance
NairaCapitalCurrencyGoing GlobalAbuja211.4m1 2,0742Population (2021)GDP per capita 202033.3%3 52.5b4 115m5UnemploymentRate 2020 (Q3)Imports (2019)Enterprise IrelandClient Exports (2020)
Why Exportto NigeriaIt is expected that the Nigerian population willgrow by 200 million by 2050, and at the end of thecentury by 733 million6.Nigeria is well known for its rich culture, extensivearable land and entrepreneurial spirit. Nigeria’seconomy has grown by an average of 5.7% peryear between 2006 and 2016, during which itssize more than doubled to 400 billion by 2016,thereby becoming the biggest economy in Africa.Nigeria suffered from a brief recession due to asharp decline in oil prices, but emerged from itin 2017, with a GDP growth rate of 0.8%. BeforeCOVID-19 struck, the economy was growingat 2.2%7. Because of the external shocks, theNigerian Government realized the need to diversifythe country’s revenue sources in order to reducethe country’s over-reliance on oil.This decision has led to the creation of strategicpartnerships and initiatives to develop other non-oilsectors such as agriculture, mining, Information andCommunications Technology (ICT), education andrenewable energy. This in turn has created ampleopportunity for Irish businesses looking to exportto Nigeria.Even before its independence, Nigeria had begunto be viewed as a potential regional and continentalbehemoth. Its geographical and demographic size,coupled with its sheer wealth of resources, made ita force to be reckoned with by foreign companiesand diplomatic missions. While the country’sinternal squabbles have prevented it from reachingits full potential, it still has hegemonic influenceover the surrounding states, primarily by virtue ofits socio-economic might.Going GlobalNigeria, “The giant of Africa”, is not onlythe largest economy on the continent butalso accounts for nearly half the populationof West Africa and 15% of the totalpopulation of the entire African Continent.
Why Exportto NigeriaNigeria plays an importantleadership role in both WestAfrica and on the Africancontinent and hosts TheEconomic Community of WestAfrican States (ECOWAS)headquarters.Nigeria is Africa’s largest ICTmarket, accounting for 29% ofinternet usage in Africa.11By 2030, the economy willreach US 1.6 trillion. TheNigerian economy is forecastto reach a projected GDP ofUS 4.3 trillion in 20508.The GDP of the city of Lagosalone counts as Africa’s 7thlargest economy, outrankingcountries like Ghana andRwanda9.Nigeria ranks 5th in Africa inservices’ output10.In 2019, Nigeria had 180.58million active mobiletelecommunicationsubscriptions.12Nigeria is a very youngcountry, with nearly 43% ofits population between theage of 0-14 years old.13The country is importdependent and offersopportunities in all businesssectors.Going Global(continued)
Key GrowthOpportunities in Nigeria14The skills deficit in Nigeria, the lack of adequatelearning aids, and the rapid growth in InformationCommunication Technology (ICT) have presentedan opportunity for private sector-led educationalinitiatives to offer distance/online learning. There isa huge opportunity for the recruitment of Nigerianstudents for studies in Ireland as Nigeria had a totalof 89,094 mobile students abroad in 2018. Fromthat number about 800 students went to Irelandand 16,072 went to the United Kingdom.15The 2017 allocation of the country’s budget toeducation was 10%, which is well below UNESCO’s26% benchmark. The lack of infrastructure ineducation has created a window of opportunityfor foreign and private led initiatives. Furthermore,Nigeria is a young country with 63% of itspopulation under the age of 25 years16 and 41.9%attending secondary education in 201617. This hasled to Nigeria being the 12th largest “supplier”of students to the international market with aprojection of 30,000 Nigerians in UK universitiesalone by 2020. Nigeria is a leading source ofstudents for Irish colleges given the large number ofstudents applying to foreign universities annually.ICT/ Fintech18As at the end of Q1 2020., Nigeria had close to137 million internet users, around 51% of the entirepopulation.19Growth in this sector has created opportunitiesfor cybersecurity, online retail solutions and otherinnovative telecoms products and services. Hugeopportunities still remain in the banking sectoras 39.7% of Nigeria’s population currently arecustomers of a bank.From 2000 to 2019, the internet has grown 55.7%20and online services are growing just as quickly.Banks see Fintech as a way to reach the (unbanked)population without having to open branches aroundthe country, and are very open to innovations suchas blockchain that will give them the lead over theircompetition.There is also a growing effort to computerisepublic agencies, extend broadband infrastructureto major commercial centres and to schools inrural communities, and provide security across thecountry. All this poses significant opportunitiesfor exporters of ICT hardware, peripherals andsoftware. Consequently, Nigeria is one of the largestAfrican markets for ICT solutions from Ireland.Life Sciences21In 2018, Nigeria’s health budget stood at N340.46billion, which was 3.96% of its N8.6 trillionproposed national spending. A breakdown of thehealth budget showed Nigeria, then estimatedto have a population of 190 million, allocatedapproximately N1,832.62 for each citizen. Ofthe total N9.45 trillion budgeted for 2020 by theFederal Government, N427.3 billion (4.5%) wasallocated to health.22Life sciences in Nigeria offers ample opportunity forgrowth in terms of research and quality healthcare.Sub-Saharan Africa has a population of 1.066 billionin 2019 and projections show that Sub-SaharanAfrica will be the most populous region of theeight geographic regions around 2062. However,Sub-Saharan Africa accounts for up to 25% ofthe world’s diseases. Nigeria, being the mostpopulous nation in Africa, has a large number ofcases of communicable diseases, creating a hugeopportunity for pharmaceutical companies. BothGovernment and private institutions are setting upclinics and hospitals and improving old facilities inorder to curb medical tourism to other countries.Irish medical device producers may take advantagethis trend.Nigeria operates a varied health system comprisingof public and private sectors. In 2016, Nigeriansspent on average 71 per person on health and in2050 it will rise to 101 per person. The Nigerianhealth sector is valued at 5 billion with about 1 billion spent on medical tourism23. Very fewNigerian hospitals or clinics can be considered to beof international quality.24Going GlobalEducation
Key GrowthOpportunities in Nigeria(continued) Renovate and/or equip hospitals and clinics. Supply of diagnostic equipment andconsumables for laboratories. Export of specialized drugs e.g. for oncology,that are not produced locally. Strategic outsourcing of business functions e.g.supply chain management, marketing, IT, patentprotection. Training and certification.Energy andengineering25Nigeria’s large population requires adequate housingand power. In the absence of sufficient infrastructure,companies and individuals invest in private solutions,often Cleantech related. Irish companies are wellpositioned to help bridge the infrastructure deficit andoffer innovative solutions.There is growing interest in moving renewableenergy to mainstream for sustainable development.This is due to the expanding commercial markets forrenewable energy that are now funded by privatefirms and banks.26Materials handling equipment, such as cranes, arealso in demand due to the logistics, and oil andgas sectors. Irish engineering solutions are alsoappreciated in the construction sector e.g. buildingmaterials and engineering software.Another field is water and waste management asevery Nigerian company or residential estate investsin private solutions in the absence of Government-runinfrastructure.SECTORAL SUCCESSESEducationThe rapid growth in ICT presents an opportunityfor private sector-led educational initiatives to offerdistance/online learning.27 There is a huge opportunityfor the recruitment of Nigerian students for studies inIreland as thousands of Nigerians study abroad eachyear.28Life sciencesNigeria, being the most populous nation in Africa, hasa large number of cases of communicable diseases,creating a huge opportunity for pharmaceuticalcompanies. Both Government and private institutionsare setting up clinics and hospitals and improving oldfacilities in order to curb medical tourism to othercountries. Irish medical device producers may takeadvantage of this trend.29Information and CommunicationsTechnology (ICT)/fintechAs at the end of Q1 2020., Nigeria had close to137 million internet users, around 51% of the entirepopulation30. Growth in this sector has createdopportunities for cybersecurity, online retail solutionsand other innovative telecoms products and services.Energy and engineeringIn the absence of sufficient infrastructure, companiesand individuals invest in private solutions, oftenCleantech related. Irish companies are well positionedto help bridge the infrastructure deficit and offerinnovative solutions.31Going GlobalOpportunities are available for Irishcompanies in the following areas:
Doing business in Nigeria is based onpersonal networks and relationships. It cantake time to build up such connections,and concluding deals will require constantfollow-up.Irish companies who are willing to commit to themarket, visit regularly and can offer good after-salesservice will be in a good position to win business.Working with a capable local partner can greatlyreduce time and cost of doing business.Travelling and geographyBusiness languageMany Nigerian companies have their headquartersin Lagos. However, there are businessopportunities in other cities such as the capitalAbuja and Port Harcourt, for the oil industry. Thereare international flights into these three key cities,with less frequently to Kano (serving the north)and Enugu (serving the east).Although there are numerous ethnic groupsand dialects in Nigeria, English is the de factolanguage of business. Also, most business leaderswill have studied overseas.Lagos Airport is less than an hour from the mainbusiness district. You will need a valid visa andYellow Fever Certificate to enter the country.Nigeria is one hour ahead of GMT, and on GMTin the summer. Temperatures are around 30 Cmost of the year. The best travel season is the dryseason during October to April.In light of global travel restrictions, weare advising all clients to regularlyreview the Government of Irelandadvice at www.gov.ie/, travel advicefrom the Department of ForeignAffairs, business continuity advice fromthe Department of Enterprise, Tradeand Employment and the World HealthOrganisation website.Business cultureBe flexible and be willing to improvise andcompromise – this is vital to cement a workingbusiness relationship. Therefore, be preparedto be patient and to wait for trust to developbefore diving into the small details of businessdiscussions.Most likely, you will need to have businessmeetings during social occasions and outsideoffice hours, as this provides a framework forthe creation of solid interpersonal relations. Berespectful of elders and those in higher positionsof authority. Equally, take care to familiariseyourself with the customs of the people you areengaging with as Nigerians respond very positivelyto such efforts.Going GlobalGet Readyto Do Businessin Nigeria
Get ready todo businessin NigeriaROUTES TOMARKETWhile many routes are possible, the most commonlytaken by Irish exporters are direct sales and workingthrough partners. Take care to be guided bytrustworthy and knowledgeable agents and pathfindersinto making long-lasting partnerships.DistributorsBecause of the absence of adequate transportinfrastructure, as well as often stifling bureaucraticinterference, distribution in Nigeria can be undulyfrustrating. It is important to work with distributors whocan navigate this terrain and can effectively reach (mostof) the country.Direct salesMany Irish companies sell directly to Nigerian entitieswho appreciate the lower cost as local partners tendto put a sizeable margin on the sales price. However,the need to regularly follow up and the often long salesprocess can quickly make direct sales more expensivefor the Irish exporter.PartnersThese can often be invaluable in guiding you throughwhat can often seem like a myriad of customs andpractices in the Nigerian working environment. Irishcompanies can leverage on the partner networkboth in terms of connections/relations, and sales/distribution.It is worth establishing the exact parameters of aworking relationship to avoid complications in thefuture. Also, please note that Nigerian regulationsgreatly favour appointing a local partner. In the oiland gas sector, according to the stipulations of thelocal content act of 2010, this is even mandatory,whereby consideration is exclusively given toNigerian businesses in all business dealings.32Going Global(continued)
Market landscapeMarket trendsCompetitorsThe Nigerian business environment is unique anddiffers markedly even from other African countries.Nevertheless, Nigerian-Irish relations date back tobefore Nigeria’s independence and today many Irishcompanies thrive in the Nigerian market.Nigeria is a developing economy and so markettrends shift quickly depending on the sector.Government policies and consumer behaviour aretwo major determinants of market trends. Monetaryand financial stability, investment in infrastructure,and structural diversification of the economy haveemerged as the thrusts of economic policy of thecurrent administration. These are areas Irishcompanies could focus on when entering theNigerian market.Given the opportunities, and steady growth in thecountry’s GDP, Nigeria is beginning to gain therecognition of international exporters and investorsand therefore, there is stiff competition from bothlocal and international companies.Key factors responsible for the success ofbusinesses in Nigeria include : Strong value proposition tailored to Nigeria. In-depth knowledge of the Nigerian market aswell as the country’s policies – or having aNigerian partner who possesses all that.Market research resources Frequent visits to the market to support yourpartner or clients. Patience - deals often take long to be concluded.Market segmentation Tolerance for delays and shocks from approvalagencies in Nigeria. Nigeria ranks 131st on Easeof Doing Business Ranking33In 2021, Nigeria’s population reached 211.4 million34with 70% aged 54 or below. This implies thatNigeria has a predominantly young population madeup of a workforce and a large potential consumerbase. While half of the population is consideredpoor, there is a middle class and affluent segmentof 40 million consumers35. Outside the food andbeverages sector, most Irish exporters currentlytarget B2B opportunities. Attractive price or cost-saving proposition.It is difficult to find reliable information in Nigeriaand we strongly advise to consult both industrystakeholders and Enterprise Ireland. There are,however, several entities that publish informationabout Nigerian business sectors: Enterprise Ireland’s Market Research nce/Market-Research-Centre/ Nigerian Investment Promotion Commission:(NIPC) www.nipc.gov.ng/ Nigerian Bureau of Statistics (NBS):www.nigerianstat.gov.ng/ Central Bank of Nigeria (CBN):https://www.cbn.gov.ngGoing GlobalThings to Consider
Things to ConsiderOther sources of market information for Nigeria are:Boots on the ground /countryform.asp?cid 566Personal relationships are essential for successfulbusiness transactions. The preferred means ofbusiness communication is face-to-face meetingsafter an introductory email or phone call has beenmade. It is important to note that no worthwhiletransaction can be completed quickly, and must befollowed up closely. Business Monitor International:www.bmo.bmiresearch.com untryfactfileCustomer serviceIn the absence of stringent rules regarding customerservice, generally it falls far below standards. Thisgives Irish companies the opportunity to redefinecustomer-service quality in Nigeria. After-salesservice is a key consideration, and contracts can bewon by offering on the ground and quick serviceor solutions.Furthermore, having a local entity either throughan established office or through a partner givesconfidence to potential clients.Going Global(continued)
Legal & TaxationInformationImport rules and regulationsAll Irish nationals require visas to enterNigeria and should apply at the NigerianEmbassy ahead of time. While there isa Visa Upon Arrival scheme, we adviseagainst using it until the system worksmore smoothly.The Government of Nigeria aims toimprove international trade whileenhancing the ease of doing businessin the country. New policies seekto encourage the elimination ofbottlenecks, which had contributedto inefficiencies in international tradedealings in Nigeria.An invitation letter from a Nigerian entityis required when applying for businessvisa. For further information:https://nigerianembassydublin.organd www.immigration.gov.ngFor the purpose of encouraging thepurchase of more Nigerian-made goods,there is quite a long list of goods thatcannot be imported into Nigeria and/orgoods that invoke high charges for theirimportation.The Government operates certainwebsites for information such aswww.trade.gov.ng, www.nigeriatradehub.gov.ng andwww.customs.gov.ng.For regulations on the export of food anddrugs as well as mandatory registration,check the National Food and DrugAdministration Agency (NAFDAC)www.nafdac.gov.ng.The Standards Organisation of Nigeria(SON), seeks to ensure that onlyproducts that cannot be manufactured inNigeria and which are not harmful to thepopulace are permitted into the country.For certification of products seewww.son.gov.ng.Intellectual Property Rights (IPR)Nigeria has a fairly comprehensivelegal framework for the protectionof Intellectual Property (IP). TheFederal Ministry of Industry, Trade andInvestment administers the protectionof trademarks, patents and designsin Nigeria and provides IntellectualProperty Rights (IPR) consistent withbest practices across the globe.More information can be found on here:http://www.wipo.int/wipolex/en/text.jsp?file id -protection/Corporate structuresA foreign company may open forbusiness as a secondary establishment,such as an office, agency, branch orsubsidiary in Nigeria after meeting therequirements of NIPC. More details canbe found here:https://www.nipc.gov.ng/100% foreign ownership is permittedunless in the oil and gas sector. A foreigncompany will have to set up a legitimatecorporate entity if doing more than anoccasional sale and when not workingthrough a local partner.Going GlobalVisa requirements
Legal & TaxationInformation(continued)Based on the existing legal framework,any investor that wishes to do businessin Nigeria is required by law to registera company with the Corporate AffairsCommission (CAC). The processis straightforward and relativelyinexpensive and much can be arrangedonline, see www.cac.gov.ngFurthermore, companies will have to paystamp duties to, and register with, theFederal Inland Revenue Service (FIRS),see www.firs.gov.ngEvery company with foreignparticipation after incorporation with theCAC must register their company withthe NIPC, www.nipc.gov.ngWe recommend any Irish company inNigeria to work with a professional taxconsultant.Apart from VAT of 7.5%, there arealso corporate withholding taxesapplicable in Nigeria, for which thereare no distinctions between the rates forresident and non-resident companies/individuals. ny incorporation has also beenmade easier in 2020 with the passing ofthe new Corporate and Allied MattersAct (CAMA). s-download-pdf/EmploymentThere is a strong but limited contingentof Nigerians with excellent educationaland professional credentials, as well as alarge young and motivated population topick from although training on the job isoften required. Employment regulationsare relatively straightforward and basedon UK laws. There are also provisionswith regard to minimum wages forcertain jobs, alongside the necessity of apension fund for individual workers.It is more complicated to hire expatriateworkers as that will require the companyto obtain expatriate quota first. Themodalities of confirming to these quotascan be quite complex, and involve thehiring of Nigerian workers as well.Specialised lawyers can help to obtainthe quota.Going GlobalTaxation and companyincorporation
Enterprise Ireland’s agency in Nigeriaassist companies in the following ways:Pre-visit supportPrior to engaging with an overseas market, clientcompanies should engage with their DevelopmentAdviser (DA) and the Enterprise Ireland MarketResearch Centre in Dublin to ensure they leveragethe full range of possible supports in preparationfor engaging with the EI team in the market. General market and country level information Sector overview Validation of the opportunity for your productor service Evaluation of your market entry strategy Suggested channels to market Competitor analysis Relevant contacts/suggested itinerary Summary of relevant market informationresourcesIn-market supportInternational trade events programme Introductions to buyers and decision-makersEvery year Enterprise Ireland organises anextensive programme of events to support yourbusiness abroad. These include: Identification of potential partners Tailored market research Setting up meeting itineraries includinglogistics Inward buyers’ missions to Ireland Group stands at international trade fairs Facilitation of buyer visits to Ireland Overseas trade missions Assistance with product launches/workshops Study visits to gain knowledge of overseasmarkets Client knowledge events including seminarsand workshops Networking events to build and enhancerelationships with market contacts Further information is available atwww.enterprise-ireland.com/eventsGoing GlobalHelping YouWin in Nigeria
Going GlobalContact UsEnterprise Ireland Representative Office2-4 Moseley RoadIkoyi, LagosNigeriaTel: 234 80 66 797 803Email: Nigeria@enterprise-ireland.comIreland’s European Structural and Investment Funds Programmes 2014-2021.Co-funded by the Irish Government and the European Union. Enterprise Ireland 2021
tion/NG18 http://commtech.gov.ng/ & www.nitda.gov.ng & or/nigeria/gdp-per-capita19 ov.ng/20 s://oec.world/en/profile/country/nga5Enterprise Ireland Annual Business Review 202021 pp/Publications/Files/WPP2019 st-economy/ca-as-the-continent-s-biggest-economy11 http://investinlebanon.gov.lb/Content/uploads/ICT Nigerian Market 2015.pdf12 f13 O.ZS14 Federal Ministry Education: https://www.export.gov/article?id Nigeria-Education15 http://uis.unesco.org/en/uis-student-flow16 PP2019 DataBooklet.pdf17 http://uis.unesco.org/en/country/ng23 nnually-medical-tourism-authorities-say24 tment-health.pdf25 nigerias-energy-deficit-emeka-ugwuanyi/26 U.B. Akuru, O.I. Okoro, “Renewable Energy Investment in Nigeria: A Review of the Renewable Energy Master Plan,” J. Energy South. Afr. 25, 3, (2014) - www.scielo.org.za/pdf/jesa/v25n3/08.pdf27 riculture-ict-internet.html28 ad-nigerian/29 tment-health.pdf30 ption com content&view article&id tid 20&Itemid 14131 nigerias-energy-deficit-emeka-ugwuanyi/32 dfGoing Global10 /nigeria-now-tops-south-afri-22 gerias-wobbling-healthcare-system/
References33 s/media/Annual-Reports/English/DB2019-report web-version.pdf34 https://www.imf.org/en/Countries/NGAGoing Global35 igerias-new-retail-economy
Nigeria ranks 5th in Africa in services' output10. Nigeria is Africa's largest ICT market, accounting for 29% of internet usage in Africa.11 In 2019, Nigeria had 180.58 million active mobile telecommunication subscriptions.12 Nigeria is a very young country, with nearly 43% of its population between the age of 0-14 years old.13
11 MMT, Nigeria is arguably Africa’s second largest producer of maize after South Africa. Ethiopia occupied the third-place position on the chart of largest producers of maize in Africa. Together, the three countries (i.e., South Africa, Nigeria and Ethiopia) accounted for about 39% of the
In 2017, Nigeria introduced its first Building Energy Efficiency Code, which sets minimum standards for energy efficiency for new buildings in Nigeria. 2030 NDC TARGET The country's 2030 NDC target is 442.5 MtCO 2 e by 2030. There is no Climate Action Tracker analysis for Nigeria. All figures exclude land use emissions. NIGERIA Nigeria's GHG
from the sub-national FREL that Nigeria submitted to UNFCCC in 2018. 3.1 Geographical location, relief, climate, soils and Vegetation of Nigeria The Federal Republic of Nigeria (henceforth referred to as Nigeria), is located on the West coast of Africa between latitudes 3 15' to 13 30' N and longitudes 2 59' to 15 00' E (Figure 1 .
Johannesburg, South Africa Auckland Park Theological Seminary Polokwane, South Africa Taberna Dei Academy Kempton Park, South Africa Kaleideo Congregation Centurion, South Africa AFM of South Africa Witrivier, South Africa Africa School of Missions Irene, South Africa Full Gospel Church of God College Cullinan, South Africa Berea Bible School
Growth in Nigeria Kenneth Ogbeide ENORUWA1, 3Moyotole Daniel EZUEM2, Onyemaechi Christopher NWANI 1Department of Banking & Finance, University of Nigeria, Nsukka, Nigeria 2,3Department of Banking and Finance, Federal University Wukari, Taraba State, Nigeria Abstract:-This work examines the impact of the capital market
for Western companies to operate in the Nigeria market. Also while planning to do business in Nigeria; it is pertinent that a company views Nigeria from its diverse cultural perspective. Despite the fact that Nigeria is a country that shares same National Anthem, currency etc, it is a multicultural economy where different cultures do not have .
some cases of police brutality in Nigeria; to investigate the causes of police brutality and violation of human rights in Nigeria; to ascertain the implications of police brutality in Nigeria and to recommend ways to prevent police violence in Nigeria. To be able to achieve these objectives, four research questions were raised, such as, are .
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