Before you Export to Nigeria: Things you must know[ Music ] [ Music ] >> Situated in the heart of West Africa, Nigeria’s 187,000,000 people make up that continent’s largest market. And the country’s on track to be the world’s 3rd most populous by the middle of the century.
For American companies that are willing to navigate a complex and evolving business environment, Nigeria can be a promising and lucrative market. While the falling price of Nigeria’s top commodity, oil, has led to lower economic growth projections, there are many opportunities for American businesses. The most promising sectors include oil and gas, consumer goods, construction, IT, agriculture, and infrastructure, especially in the power and transportation sectors With 196,000,000 mobile phone lines accounting for approximately 29% of Africa’s internet usage, there will be huge opportunities for the development of data services in coming years. Given its central location, Nigeria is also a good springboard for American companies looking to expand into other countries in the region.
This includes the 15 countries of the economic community of West African states, The US Commercial Service is available to help US businesses access market research and find qualified buyers in Nigeria and West Africa.
So why should a US company export to Nigeria?
- Because Nigeria is the most entrepreneurial and resilient country I’ve ever served in in my Foreign Service career That, to me, is very positive So Nigeria is the largest economy and all of Africa.
- Population: Also the most populous nation. A very — a very dynamic place. It has a burgeoning economy, but it faces a lot of challenges. Oil and gas are still important They are the principle source of government revenues.
Sectors you should consider when trying to export to Nigeria
- ICT: I think that ICT is my favorite sector because it empowers the Nigerian entrepreneur. In the past 10 years the country’s been transformed and the penetration is more than 80%, which is high for a country of 200,000,000.
- Technology and Infrastructure: With many, I’ll say, remote parts in Nigeria, there’s a lack of infrastructure still so it’s not easy sometimes to communicate But the handheld device is used by entrepreneurs at every level and what is exciting about it is that it empowers the small businessperson So you find that Nigerians — young Nigerians are like young Americans.
They’re very tech savvy; they do Facebook, they do Twitter – They have every conceivable app on their smart phones – So you’re seeing a bigger alliance on technology to get to the source.
It’s a dynamic place, it’s a challenging place – American companies are already there and they want to be there, but they need to do their homework. They need to find viable partners And that’s where we come in. The Congress Department, as you know, was famous for connecting the dots between potential exporters and importers. We will visit the potential Nigerian partner just to make sure that we see the premises, we do due diligence, we look at the potential partner’s financials, his or her reputation. And things are beginning to open up in Nigeria now, the economic reforms are being announced and they are being issued.
Bottomline on factors and sectors to consider when attempting to export to Nigeria
I think that Nigeria is a stepping stone or a springboard for business not only in West Africa, but also throughout the region. Many American companies are coming into Nigeria and they’re using it as a base or as a stepping stone to other countries such as Benin, Ghana, Togo, throughout the region The bottom line is Americans need to be there because it is a pro-American country with significant demand for American products and solutions. And it is a burgeoning — it’s a potential economic giant >>
Want to learn more about how export to Nigeria? Explore the Nigeria Country Commercial Guide on export.gov or connect with a US Commercial Service trade professional [ Music ] Brought to you by the US Commercial Service, part of the US Department of Commerce’s International Trade Administration [ Music ]