Dynamic Export

Advanced exporters

Nigeria’s accelerated growth as the largest telecommunications market in Africa in less than a decade offers a wide range of opportunities for Australian firms in areas such as repair and maintenance of telecommunication facilities, alternative energy for cellular sites/services, mobile content development and recharge card solutions among many more.

In the ICT sector, Australian companies are well positioned to take advantage of opportunities made possible by two recently arrived fibre optic cables. The intercontinental cables have started a new wave of increased PC and internet penetration, and there are rapidly growing demands for telecommunication training and certification, including education for other software and IT services. Australian technology companies will find a number of opportunities to pursue in Nigeria.

There are no restrictions on foreign nationals or foreign entities doing business in Nigeria, however, interested Australians must incorporate a local vehicle before commencing business. Companies are set up through, and regulated by, the Corporate Affairs Commission. Australians can also take advantage of added incentives, such as a three-year tax holiday, for business sectors in the list of pioneer industries in Nigeria. There are also a number of other attractive incentives in Free Trade Zones across Nigeria. The Nigerian government ensures that foreign investors claim their due incentives through the proactive and professional services of Nigeria Investment Promotion Commission (NIPC).

Being that Nigeria is a relatively new investment destination for Australians, the key to starting business in Nigeria is finding a reliable and effective local partner. Dealing with a reputable local partner could make a whole lot of difference, because government agencies and businesses in Nigeria prefer to deal with people they know are reliable.

Barriers

Nigeria has a reputational disadvantage, and it is impractical for the government to focus on constantly rebuffing these negative perceptions. Australians should find the time to identify the difference between reality and the myths about doing business in Nigeria.

Other key obstacles Australians could face in doing business in Nigeria include a lack of credible information about the country, limited representation of Australian Government international trade resources, and overcoming the initial effects of international perceptions associated with Nigeria.

In Nigeria, there’s no shortage of potential commercial partners. However, some companies may advertise themselves as potential partners in a particular business sector without the necessary credentials to support their claim. It takes time and resources to verify the claims made by would-be business partners but in the end, a reliable partner could be the difference between business success and failure.

Another barrier to doing business in Nigeria is poor infrastructure and inadequate supply of utilities such as power and water. These challenges are expected in most developing countries, but Nigeria’s case is special because the country’s infrastructure challenges are not as a result of poverty but a product of mismanagement of proceeds from vast natural resources by past governments. An officer at NIPC, Eric Ani, informed me during my recent trip that “all the utilities and infrastructure challenges in Nigeria are investment opportunities”.

Despite these challenges, foreign investors on the ground in Nigeria have since realised that international perception is not necessarily reality. Better prospects for return on investment matter more than myths about a country.

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