Dynamic Export

The future

In a recent report, The World Bank confirmed Nigeria as the number one destination for foreign direct investment in Africa with 29.4 percent, followed by South Africa with 18.2 percent. The statistics indicate that foreign investors’ confidence in Nigeria as prime investment destination in Africa is growing by the day. Australians that are still hesitant about business potential in Nigeria can draw insights from the fact that more foreign investors are entering Nigeria from both developed and developing countries.

The telecommunication companies that pioneered investments in that sector in Nigeria declared unparalleled return on investment within 18 months. Australian firms with expertise in power generation and distribution can copy the telecommunication experience and join the new generation of investors that are expected to deliver uninterrupted power supply in Nigeria in few years from now.

Instead of businesses budgeting money year after year to promote products and services in saturated markets, it would make more economic sense to explore largely under-exploited markets such as Nigeria. Australian businesses, entrepreneurs and innovators can test their products and services acceptability in Nigeria through major international exhibitions such as the Lagos International Trade Fair and Industry exhibitions.

The reality of more than 150 million domestic consumers makes Nigeria the place to be in Africa. If non-English speaking investors could succeed in Nigeria with interpreters, Australians that share same British heritage as Nigeria can do better if they give the opportunities a fair go.

—Frank Aneke is the principal of OctoberFirst Consulting (www.octoberfirst.com.au) an investment communication firm specialising in business opportunities in Africa. As an international business expert, he is known for his zeal for facilitating business and investment relationships between Asia-Pacific nations and emerging African countries. OctoberFirst is a member of the NSW Business Chamber.

Nigeria: A business entry guide

• Verify potential business partners through official channels or people you know.
• Never pay bribes.
• Be patient. Establishing long-term relationships and mutual trust is the key to success in Nigeria.
• Avoid interstate road travel if possible. There are internal air travel routes in Nigeria.
• Be aware of religious sensitivities, particularly in the north.
• Go to Nigeria and meet your partners. Don’t expect success without making the effort to establish proper relationships.
• Start small, gain confidence and then build up slowly.

Trade links

Australian High Commission: www.nigeria.embassy.gov.au
DFAT Nigeria profile: www.dfat.gov.au/geo/nigeria
Economic and Financial Crimes Commission: www.efccnigeria.org
Nigeria High Commission: www.nigeria-can.org.au
Nigerian Investment Promotion Commission: www.nipc.gov.ng
Corporate Affairs Commission: www.cacnigeria.org

Got something to say? Join the export forum here at DynamicExport.com.au.