When expanding your business to Nigeria is a natural starting point for the entire region. Thanks to its highly skilled workforce and diversified business environment, it offers interesting opportunities in industries such as energy, ICT, telecommunication, healthcare, and infrastructure.

As a commercial, financial, and logistics hub, Nigeria is the beating heart for international trade if you want to develop your business in the West African marketplace. With over 200 million people and steady growth in many sectors, it is a region with lots of potential.

A GROWING ECONOMY

The Nigerian capital of Abuja and the commercial hub of Lagos are home to numerous NGOs, multinational corporations, and local enterprises, offering an abundance of opportunities. Moreover, the Nigerian economy is pushed forward by urbanisation, structural reforms, investments in infrastructure, a sustainable expansion in consumer services, and the integration in the intergovernmental Economic Community of West African States (ECOWAS). Nevertheless, the country still faces a number of challenges that weigh on this progress, such as fraud, corruption, and a high crime rate.

OPPORTUNITIES FOR EUROPEAN COMPANIES

Nigeria offers many opportunities for European companies in a myriad of sectors, such as energy, ICT, telecommunication, and infrastructure. The growing middle class in the country also increases the demand for consumer goods. Nigeria is an important partner for Europe in Western Africa. Many European companies have an office in Lagos where they run their business activity for both Nigeria and other countries in the region.

HOW WE CAN HELP

European companies that want to expand to Nigeria can count on the SCA-Partner expert network and advice of our Lagos office. It was established in 2018 and is also responsible for several neighbouring markets, including Ghana, Ivory Coast, Senegal, and Cameroon. Lagos is also the hub office for our market area Africa.

WHAT ARE THE MAIN ADVANTAGES FOR EXPANSION IN NIGERIA AND WEST AFRICA?

Nigeria has a well-functioning market economy with free press, robust democratic processes, and a strong civil society. The country is developing quickly, with an enthusiastic and fast-growing middle class that is curious about European goods. English is the dominant language in education, politics, and business, and despite the long distance to Europe, cultural differences are smaller than you might think at first glance.

Companies that offer cost-effective solutions should see West Africa as a growth opportunity. Goods and services that help local businesses to increase their efficiency have great potential to gain a significant market share. There is also a major need for investments in infrastructure, healthcare, and in a variety of projects that are financed by aid, development banks, and donor organisations.

WHAT ARE THE RISKS AND CHALLENGES COMPANIES MAY FACE IN NIGERIA AND WEST AFRICA?

Working in developing markets always implies a certain level of risk. Safety can be an issue in Nigeria, since bad road conditions, crime, and even terrorism create a potential danger. There are also major challenges in terms of compliance, such as corruption, fraud, and difficulties in gaining access to information on ownership, accounting, and processes. Payments are not always in line with Western European expectations, and sometimes Western African partners pay late or not at all. To manage these risks, strong local partners and close control on local operations are necessary.

ARE THERE ANY CULTURAL ASPECTS TO CONSIDER?

Market presence is important, since strong business relationships are mostly created through personal contact and physical meetings. A strong commitment, dedication to the market, and trust in partners is highly appreciated. Expressing your trust is seen as a validation of your partners’ services, reliability, and support in case of problems.

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