Challenges To Doing Business In Nigeria

cac company online registration has a population of over 150 million out of that 40 % represent the active and young population.

Starting a company in Nigeria has some really challenging challenges apart from the normal ones every company faces. In Nigeria you have to provide your own energy source, Pay substantial communication expenses, compete with bad streets, slow Government procedures and insecurity.

The present state of power supply in the country is such that there is absolutely no guarantee on the number of hours of power supply you could get per day or if you could find whatsoever. Despite all of the efforts of the Government in this respect, the state of Power distribution has remained poor.

As a business owner, you have to factor in the expense of generating your own power for 100 percent of the time typically. When you consider the fact that in most foreign nations, this is not the situation. This certainly contributes to higher company startup expenses and fortunately more marketplace for generator Manufacturers and Providers.

With the coming of the GSM Technology at 20022003, mobile phones became available on the streets in Nigeria. Its affordability in terms of Tariffs has stayed high when you compare it to other countries. Most GSM companies and Fixed line phone Operators have dreamed of the high cost of electricity generation for their business activities and also the high cost of their operating licenses because the major causes of top phone tariffs.

These factors also affect the online service providers to a huge extent. The bulk of the population still depend on satellite technology that is still quite pricey in Nigeria.
When you intend to do business in Nigeria, prepare for high web and mobile bills.

Road Network

Depending on the type of business you wish to do, almost 80 percent of Nigeria roads outside the business centers are poor. For those from the business centers, I could say about 60% are bad. If your plan is to initiate a road transport related business like logistics, freight, delivery, taxi etc you might want to budget a significant amount of cash for automobile breakdown as a result of bad roads. Even if you’ve got a mill, then you may sill have to get your merchandise to the distributions centers. That is another major challenge to doing business in Nigeria.

Other regions of the country are rather secure besides the inevitable isolated small incidents such as burglary and property break-in. Unfortunately, Nigeria depends greatly on Oil, and it has made very enormous investments in that respect.

The petroleum industry accounts for the bulk of foreign direct investment in Nigeria along with also the current hardship situation in the oil producing regions is not helping that sector of the economy. Although there has been efforts by the government in this respect but a lot more needs to the done to enhance the quality of life of individuals living in these areas before it can grow to be completely safe to do business there.

These are by far not the only challenges you’d face to begin or run a company in Nigeria but they’re the most annoying ones. In the event the Government could correct a least the the Power supply, small companies will spring up like weeds all over the country.