Trade With Nigeria (TN)
Expats
looking to do business in Nigeria, and especially those who have never done
business on the African continent before, will certainly have to prepare
themselves for some unique challenges.
Although
great strides have been made within the corporate world in Nigeria – one of the
most oil-rich countries in the world and Africa's largest economy – the country
still suffers from massive corruption and a debilitating lack of
infrastructure; two factors that can make doing business difficult, to say the
least.
However,
expats should remember that a tremendous amount of business does get done in
Nigeria, and jaded or pessimistic views about the country are not always well
deserved.
Nevertheless,
doing business in Nigeria is challenging, as illustrated by numerous
international business surveys. Most notably, Nigeria ranked 146th (out of 190
countries) in the World Bank's 2019 Ease of Doing Business Survey. This
marked a solid improvement from its previous ranking of 169th and the country
performed well for factors such as ease of getting credit (12th) and
protecting minority investors (32nd), but it continues to rank extremely poorly
for factors such as getting electricity (171st), registering
property (184th) and trading across borders (182nd).
Fast facts
Business language
In
a country that claims many different ethnic groups and dialects, English has
emerged as the de facto language of business in Nigeria
Gender equality
Nigeria
remains a patriarchal society, with traditional roles for men and women largely
adhered to. However, there are plenty of opportunities for women and many women
can be found in senior positions within both the corporate and political
sphere.
Business culture in Nigeria
Business
culture in Nigeria is subject to a number of variable forces; over 250
different ethnic groups co-exist in the country and many foreign-owned
multinationals have operations there. Business etiquette, therefore, demands
that expats remain flexible and willing to improvise.
Since
it is vital to cement a working business relationship with associates, be
prepared to be patient and to wait for this trust to develop before diving
into the nuts and bolts of business discussions. For this reason, business
meetings in Nigeria are very social occasions, providing the framework for the
creation of solid interpersonal connections.
Management style
The
management style typically found in Nigeria is extremely hierarchical. The boss
– invariably male, and almost always of an older generation – will expect and
will receive respect from all those working beneath him, and will never be
publicly criticised. However, this does not necessarily mean that all decisions
are made from the top down; business relationships are extremely important in
Nigeria and, often, compromises can be reached.
Nigerian
business leaders tend to lead strongly, giving their employees instructions that
are expected to be followed closely. Teamwork and the ability to work together
toward clearly defined goals are considered more valuable assets in the
Nigerian workplace than independent thinking or individualistic efforts.
Attitude to foreigners
Nigerians
are famously friendly and hospitable people who take a genuine interest in the
lives and experiences of foreigners. If one makes an effort to get to know the
locals, this friendliness will be repaid tenfold.
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