The goal of most companies is to become a global brand hence it’s not strange to see such companies try to break into foreign markets or establish partnerships with nationals/companies in other countries all in a bid to gain access into new markets and have global presence.
Nigeria has a population of over 150million people and naturally we are a consuming country “everything and anything sells here”. Nigeria is blessed with so many natural resources and different sectors in which any business can thrive. Nigeria is a huge market with a large customer base for any foreign business to tap into. Everyday partnerships are established and we see new foreign nationals move their businesses to Nigeria as there is no restriction on foreign nationals or foreign entities doing business in Nigeria. It is however not strange to see some of such companies after few months or years of operation pack what is left of their company and income to move back home having failed woefully in Nigeria which in most cases is due to a faulty business foundation or their inability to understand and break even in the Nigerian market.
As a foreign national trying to break into the Nigerian market there are certain things you need to know or that must put in place for your business to succeed in the Nigerian economy
1. IS NIGERIA SAFE FOR BUSINESS
YES? That is the simplest answer. Every country has its flaws and Nigeria is no exception. Despite the present insecurity situation in Nigeria the country is still thriving in business and its economy hasn’t be decapitated by the happenings around it. Contrary to the popular belief that Nigeria is presently “a no go area” for expats or foreign investors we would like to differ by saying the country is still one of the safest for foreign investors and one can tell by the daily influx of foreign business into the country and the daily increase in the number of foreigners who move here to start a business.
2. UNDERSTAND THE MARKET
It is important that as foreign investors you understand the nature of the market you intend to operate in. Before you pack your bags and get on the plane it is important that you study the scope and feasibility of the market you plan to enter. Try to know what the market wants, the consumer behavior of Nigerians, the business culture of Nigerians and your target market. Hence I advise that you employ the service of a marketing or business consulting company to carry out a proper market analysis of the market before you move here..
3. NETWORK WITH OTHER FOREIGNERS WITH BUSINESS IN NIGERIA
There are various forums via which you can meet other foreign nationals like yourself who own one business or the other in Nigeria. It’s important you network with such people as they can give you an insight into what exactly you need as a foreigner to survive the Nigerian economy. You can employ the services of sites such as www.internations.org or www.intrasolutionsconsultancy.com or this blog to connect with nationals from your home country who run businesses in Nigeria
4. EMPLOY A NIGERIAN CONSULTING COMPANY
Any foreigner who owns a business in Nigeria would tell you the huge difference between starting the business on their own and employing a Nigerian business consulting or marketing company to carry out the activity as well as the huge benefit. I mean no one can understand a system better than someone from the system itself. By employing such companies you can be assured that the stress of trying to set up the business in Nigeria would be reduced. Your consultant would tell you what obtains in the market, how to survive the Nigerian market, work on your brand presence etc.
We advise that you employ a comapny whose expertise and competence in this field has been proven over time. We also suggest that you take extra care when employing such companies to avoid fraudulent activities which is one of the major risks. Hence you can employ such companies by asking other foreign nationals for the ones they used or you can search through the yellow pages of Nigeria online or better still you can contact http://www.intrasolutions.com
5. GETTING A BUSINESS PARTNER
It is highly recommended that you get a local partner but finding the right one is important. Your local partner would serve as your eyes and ears in Nigeria. We advise that you meet with your local partner in person before sealing any form of deal with them. It is therefore off utmost importance that you fly to Nigeria to meet with your partner to avoid future losses.
One of the major worries of most foreign national is how to get a trustworthy and efficient partner, like I said earlier your consulting company would be able to link you up with such partners in an event where you employ one and they would help organize and set up any form of meeting between you and your partner.
6. REGISTER THE BUSINESS AND SECURE THE PERMITS
Foreign nationals may undertake any type of business and own 100 percent equity and undertake any type of business in Nigeria except those in the negative list, that is, production of arms, narcotics and related substances which are prohibited to Nigerians and Foreign Investors alike.
Foreign nationals not resident in Nigeria do not require permits before establishing business or investing in Nigeria. However, foreign nationals resident in the country need residence permit before forming a company while business permit is required for the business to commence.
Residence permits are obtained from the Nigerian Immigration Service while business permits are obtained from the Federal Ministry of Internal Affairs. You can also employ the services of travel agencies and immigration service companies to help reduce the stress and assist with processing your permits.
7. RECRUITING YOUR WORKFORCE
With the help of a competent recruitment agency your company would be assured of employing the best in your field of operation in Nigeria. Employing the service of a recruitment agency in Nigeria is both affordable and efficient as such companies would be able to employ not only competent but trustworthy staffs who they can give an account off.
Good luck with starting a business in Nigeria
The Nigerian-Turkish Investors Forum 