why Businessminds should Pitch their Tents in Nigeria.....PART 2

........................Continuation of Previous Post 

However, international oil companies operating in Nigeria have expressed concern that this latest version of the PIB would boost Government of Nigeria (GON) royalty and tax revenues to a level that makes new investment unprofitable. In contrast, the Government of Nigeria (GON) has argued that the PIB reflects current internationally-accepted industry contract standards.

Over the next two to three years, international exporters of power generation, transmission and distribution equipment and services have significant trade opportunities in Nigeria. The Government of Nigeria (GON) recently announced that Nigeria requires more than $3.5 billion to improve its power generation, transmission and distribution capacity from less than 5000 MW to 20,000MW by 2016. International exporters of electrical components and parts have growth opportunities here as well.

 In the construction sector, the Government of Nigeria (GON) has identified a number of road projects that present opportunities to international exporters. Some of these projects will connect key hubs of economic activity and add an additional 5,000 km to the national network of paved roads in Nigeria, including the construction of a 2nd Lagos Outer Ring Road to relieve traffic in the Lagos metropolitan area and improve movement of goods from Lagos Sea Ports.

Significant trade opportunities exist for international exporters in other leading industry sectors such as aerospace (aircraft and parts); agricultural products (wheat, dairy, poultry and packaged food) and equipment; automobiles, trucks, buses, automotive parts and accessories; computer hardware and software; education; environmental services; security and safety equipment, accessories and services; franchising; healthcare services and medical equipment; marine vessels; and telecommunications equipment and services.

Nigeria is Africa’s most populous country, accounting for approximately one-fifth of its people and 2.4 percent of world population. It is arguably one of the most culturally diverse societies in the world, with approximately 250 ethnic groups among its estimated 170 million people.

Nigeria has many honest, well-educated and prepared business people eager to form partnerships with international counterparts.

Opportunities abound in Nigeria for International exporters in the following sectors:

•        Aerospace (aircraft, services and parts);

•         Agricultural products and equipment;

•         Automobiles, trucks, buses, automotive parts and accessories;

•         Computer hardware and software;

•         Construction and earth moving equipment;

•         Education;

•         Electricity and power generation;

•         Environmental services security and safety equipment, accessories and services;

•         Franchising;

•         Healthcare services and medical equipment;

•         Marine vessels;

•         Oil and gas equipment;

•         Security and Safety equipment; and

•        Telecommunications equipment and services

The continuing massive influx of Asian, especially Chinese, suppliers and manufacturers into Nigeria constitutes a major competitive challenge to other international interests in the industry sectors outlined above, although some local business leaders voice their concerns about the quality of Asian products and their rate of penetration into Nigeria’s marketplace.

While Nigeria offers international firms export opportunities in many sectors, it can pose some daunting challenges including inadequate energy and transportation infrastructure, weak regulatory institutions, the threat of crime and endemic corruption, and recurring episodes of regionalized political instability and violence. Market challenges such as these can lead to high operating costs. To mitigate these challenges, international firms are encouraged to appoint and work with competent local partners prior to establishing a local presence.

The aforementioned is brought to you, courtesy of National Mail.

National Mail is an online news platform of Trade Nigeria that focuses on business development, Investment, trade, economic exchange and development. 

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