Corporate Nigeria

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Corporate
Nigeria
Investing in
Nigeria: A Strategy
Guide
Group 3_Sec B

Corporate Nigeria- Investing in Nigeria: A Strategy Guide
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Acknowledgement
We would like to take this opportunity to thank Prof. Aravindan for giving us such an
interesting project to work on. This project has made us more aware of the opportunities and
issues related to Nigeria and have impregnated us with a sense of awareness not only towards
the immediate scenario but the entire trend in total. During the course of our research we came
across certain areas related to the ups and downs of the Nigerian Economy and the potential
implications. Our Project – “Corporate Nigeria- Investing in Nigeria: A Strategy Guide”
strives to imply, focus and elaborate all possible aspects and issues related to Nigeria.

Thanking You,
Achintya PR
Ankit Uttam
Arun KS
Manish Watharkar
Nishigandha
Pankaj Kumar
Prashant Patro

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Contents

1. Nigeria: Quick Glance……………………………………………04
2. Nigeria: Country Profile………………………………………..06
3. Nigeria: Geographic Overview………………………………11
4. Nigeria: Socio-cultural Overview…………………………..14
5. Nigeria: Demography……………………………………………19
6. Nigeria: Educational Overview……………………………...20
7. Nigeria: Political Overview…………………………………...26
8. Nigeria: Legal Framework…………………………………….29
9. Nigeria: Economic Overview…………………………………33
10. Nigeria: Industrial Overview…………………………………43
10. Nigeria: Special Investment Destinations………………70
11. Bibliography………………………………………………………...72

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Nigeria: Quick Glance
Official Name:
Federal Republic of Nigeria

Area:
Approx. 923.800 sq km

Conventional Short Form:
Nigeria

Population:
2012, approx. 166.2 million (annual growth
rate of 7.46%)

Capital and Seat of Government:
Abuja (approx. 2.2m residents)

Ethnic Groups:
More than 250

Form of Government:
Federal Republic. Presidential Democracy
[“Fourth Republic”] was introduced in 1999

Religious Groups:
Muslims (50%). Christians (40%),
indigenous religions (10%)

Head of state and Government
President Goodluck Jonathan, Grand
Commander of the Order of the Federal
Republic (GCFR), President and Commander-InChief of the Armed Forces of the Federal
Republic of Nigeria. New elections will be held
in 2015.

Languages:
English (official), Hausa. Yoruba, Igbo, Fulani
Currency Naira:
NGN = 100 Kobo: 159.4 NGN = 1USD:
217.87 NGN = 1 EUR (Jan 2014)

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Memberships in International Organizations
ACP (African, Caribbean and Pacific States), AU
(African Union), Commonwealth, ECOWAS (The
Economic Community of West African States),
FAO (Food and Agriculture Organization), G77,
G15, G24, IAEA (International Atomic Energy
Agency), IBRO (International Bank for
Reconstruction and Development). ICAO
(international Civil Aviation Organization), ICC,
ICFTU (International Confederation of Free Trade
Unions), IDA (International Development
Association), IFAD (International Fund for
Agricultural Development), IFC (International
Finance Corporation), IFRCS (International Red
Cross and Red Crescent Movement), IHO, ILO
(International Labour Organization), IMP, IMO
(International Maritime Organisation), Interpol,
IOM (International Organization for Migration),
IPU (Inter-Parliamentary Union), ITU
(International Communication Union), MICA
(Multilateral Investment Guarantee Agency),
MINURSO, MONUC, OAS observer (Organization
of American States), OIC (Organization of Islamic
Conferences), ONUB, OPCW (Organisation for the
Prohibition of Chemical Weapons), OPEC,
UNCTAO, UNESCO, UNHCR, UNIDO, UNITAR,
United Nations and Sub-Organizations
(UNAMSIL), UNMEE, UNMIL, UNMIS, UNMOVIC,
UNOCI, UPU (Universal Postal Union), WCO
(World Customs Organization), WFTU (World
Federation of Trade Unions), WHO, WIPO (World
Intellectual Property Organization), WMO (World
Meteorological Organization), World Bank, WTO.
Major Media Outlets
Press

Champion, Comet, Daily Independent, Daily
Sun, Daily Times, Daily Trust, Guardian, New
Nigerian, News-watch, Punch, Tell, This Day,
Vanguard, various daily papers, weekly
magazines and political magazines.
Television and Radio
Africa Independent Television (AIT), Channels
TV, Degue Broadcasting Network (DRN),
GalaxyTV, Minaj TV, Nigerian Television
Authority (NTA), Federal Radio Corporation of
Nigeria (FRCN), Ray Power, Voice of Nigeria and
Private Broadcasting.

Macroeconomic Indicators for Nigeria
GDP
(Current USD
billions)

GDP
Growth
rate %

GNI per
capita
(USD)

Inflation
rate %

2002

467

2.9

310

4.0

2003

58.3

11.2

360

2.1

2004

72.3

6.0

400

2.0

2005

97.0

5.9

520

6.2

2006

114.7

6.0

640

3.1

2007

165.7

6.1

930

5.7

2008

207.1

6.0

1170

11

2009

216.1

4.3

1273

11

2010

229.5

7.8

1306

15.6

2011

245.2

7.4

1347

13.2

2012

262.6

6.5

1431

12.2

(Source: World Bank)

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Nigeria: Country Profile
50 years of struggle begin to bear fruit
Nobody could have predicted that on 1 October,
1960 – when Nigeria declared independence –
that half a century later the country would finally
have a stable democracy, be taking the first steps
towards weaning itself off its ruinous oil habit
and be firmly on course towards becoming a
global economic giant.
The journey hasn’t been easy. There has been a
civil war, military coups, religious conflict, huge
levels of corruption and a sustained insurgency
that has yet to be resolved. But, as the last
fireworks fade from the sky and the country
returns to the daily grind, Nigerians can look to
the future with confidence, remembering the

words of one of their most famous sons, Chinua
Achebe: ‘The damage done in one year can
sometimes take ten or twenty years to repair.’ It
looks like those repairs are finally starting to be
made.
Proving that it is now a mature democracy,
2010 has seen Nigeria make the peaceful
transition from Umaru Yar’Adua’s administration
to that of former vice-president Goodluck
Jonathan. After Yar’Adua’s life-threatening heart
condition saw him make a withdrawal from
public life in 2009, Jonathan was appointed by
the Senate in February 2010 to serve as acting
president, avoiding a potentially dangerous
power vacuum.
Despite predictions that he would make a
recovery, Yar’Adua sadly died in May this year.

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President Jonathan assumed office on 6 May 2010
and paid tribute to his predecessor, saying:
‘Nigeria has lost the jewel on its crown and even
the heavens mourn with our nation tonight.’
Barack Obama and Nobel Laureate Wole Soyinka
also marked Yar’Adua’s passing. President
Jonathan has inherited a stable economy, with an
oil sector slowly recovering after years of
violence and increasingly vibrant agriculture and
tourism sectors. Recent months have already
seen him act quickly and decisively to remove the
taint of corruption from Nigeria’s government, as
well as appointing a cabinet with a combination
of energy and experience.
With a total area of 356,669 square miles,
Nigeria is the world’s 32nd largest country, and
the most populous country in Africa, with an
estimated population of just over 149 million
people.
The country has a relatively high birth rate –
just under two % (36.65 births per 1000 people)
– and a fast growing economy to match. At the
end of 2008, the country’s real GDP growth rate
was 6.1 %, and in 2009, despite the global
recession, the country had a positive estimated
rate of three %, expected to rise to 4.4 % by 2010
year end, and to 5.5 % by 2011.
Partly due to the 2009 crisis in its banks, which
dried up lending, the country currently has an
inflation rate of about 11 %. But the naira, which
has remained stable at between 149 to the dollar
and 153 over the past year, is expected to act as a
brake to stop inflation pushing higher.
Nigeria’s GDP is estimated at USD357.2 billion
purchasing power parity (PPP – or USD167.4
billion official exchange rate) putting it at 32nd
place in a global table of purchasing power parity
– above many European nations and the third
highest of the African nations, after South Africa
and Egypt.
Not only that, the country is in Goldman Sachs’
‘Next Eleven’ list – countries identified as having

a high potential of becoming the world's largest
economies in the 21st century, good news for the
country’s hopes of being among the world's
leading 20 economies by 2020.
Population and Geography
Containing over 250 ethnic groups, Nigeria has
an abundance of diverse cultures, from the Hausa
in the north to the Yoruba in the southwest and
Igbo and Edo in the southeast. The Muslim Hausa,
the most numerous group, have become
integrated with town-dwelling Fulani. Rural
Fulani, mostly cattle herders, remain more
separate and speak Fula rather than Hausa. There
are several other major ethnic groups in the
north too – the Nupe, Tiv and Kanuri.
In the south, a quarter of the Yoruba are
Muslim, half are Christian and the remainder
follow indigenous beliefs, although there is no
clear division between these two belief systems.
The Igbo (or Ibo) are mostly Christian, as are
other ethnic groups in the southeast, such as the
Ijaw – the fourth largest Nigerian ethnic group –
Efik, Ibibio, and Annang. Again, indigenous beliefs
play a substantive role in their interpretation of
Christianity. Most Nigerian Muslims follow the
Sunni sect, while Roman Catholicism and
established Protestantism are the two most
popular forms of Christianity. However,
breakaway sects incorporating more traditional
beliefs are gaining followers. Of the estimated
521 languages spoken in the country, apart from
English, the most commonly spoken are Hausa,
Yoruba and Igbo, with Kanuri popular in the
northeast.
In order of size, Nigeria’s major cities are Lagos
(approx. 20 million inhabitants), Kano (3.6
million), Ibadan (3.5 million), Kaduna (1.6
million) and Port Harcourt (1.1 million). Abuja,
the capital, has a metropolitan population of
780,000. The country’s topography is effectively
divided into three zones: the far north, the sahel
to the edge of the Sahara, consists of arid semidesert with less than 508 mm (20 inches) of rain

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per year; the central region, beginning with the
Nigerian Sudan, consists of savannah – grassy
plains with patchy tree cover and a rainfall of
between 508 and 1524 mm (20 to 60 inches) per
year, becoming more humid in the centre of the
country; the far south has a tropical rainforest
climate, with 1524 to 2032 mm (60 to 80 inches)
of rainfall.
In the southern region, heading south, the
rainforest gives way to freshwater swamp and
then finally to mangroves and the coast – Nigeria
has a coastline of approximately 500 miles (800
km). Beyond that, the country’s territorial waters
extend 12 nautical miles out to sea,
complemented by an exclusive economic zone
that stretches 200 nautical miles offshore.
Of Nigeria’s three regions, the south is the most
extensively developed, containing all of the
country’s major industrial centers, as well as its
oil fields and seaports. Traditionally, the north of
Nigeria has had closer contacts with its north
African neighbors across the Sahara than the rest
of Nigeria, although this is changing as the
internal transport infrastructure improves. The
far north has two areas of dense population, in
the Sokoto and Kano-Katsina areas. Due to its
climate and soil quality, Nigeria’s vast central
area is the least developed of the three regions,
although there are a few small densely populated
areas in the southern Tiv areas and the tin fields
of the Jos plateau.
Nigeria’s most notable geographic feature is the
valley of the Niger and Benue rivers, which meet
in the centre of the country, forming a Y shape.
Other features include the Jos plateau rising up
from central Nigeria, with its expanse of lava
surfaces and countless extinct volcanoes. The
plateau covers about 8000 sq km (3000 sq miles)
and has an average elevation of 1280 m (4200 ft).
The home to the country’s tin industry’s highest
point is Shere hill (1780 meters/5800 feet). The
most mountainous part of Nigeria is the
Cameroon highlands, along the southeastern
border with Cameroon, with the two highest

points in the country: Chappal Waddi (2419
metres/7936 feet) in the Gotel Mountains and
Mount Dimlang (2042 metres/6699 feet) in the
Shebshi Mountains.
Economy – Main Sectors
Nigeria’s major export partners, chiefly for oil
and gas but also for cocoa and rubber are the US
(41.4%), India (10.4%), Brazil (9.4%), Spain (7.2
%) and France (4.6%) Major import partners, for
commodities such as machinery, chemicals,
manufactured goods, food and live animals are
China (13.8 %, Netherlands (9.6 %), US (8.4 %),
UK (5.3 %), South Korea (5.2 %) and France (4.3
%).
Although Nigeria is most well known for its oil
and gas wealth, it is rich in many other resources
too. The country possesses significant coal
reserves, tin and columbite in the Jos plateau,
extensive iron ore deposits in Lokoja and Kwara
state, as well as limestone in many regions. Other
resources include niobium, lead, zinc, kaolin,
gold, topazes, sapphires, aquamarines and rock
salt. The northeastern region contains uranium,

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although this has yet to be exploited on a
commercial scale.

agriculture will be increasingly important to
Nigeria.

Oil and gas exports are still hugely important to
the Nigerian economy, accounting for 90 % of
foreign exchange earnings and about 80 % of
budgetary revenues. The country is a member of
the Organization of Petroleum Exporting
Countries (OPEC). By mid 2010, oil production in
Nigeria was estimated at 2.3 million barrels per
day, thanks to a successful peace deal with the
Niger Delta rebels, originally brokered by former
president Yar’Adua. In contrast, before the
ceasefire, 2009 production figures had been
estimated as low as 800,000 barrels. Timi Aliabe,
Special Adviser to Goodluck Jonathan on Niger
Delta Affairs, estimates that production will rise
to five million barrels once a retraining
programme for ex-militants in the Niger Delta –
who are also key stakeholders in the region – gets
under way.

Nigeria has a thriving communications sector –
the fastest growing in Africa and eighth fastest in
the world. Mobile and fixed line subscriptions
combined are estimated to have had a 125 %
annual growth rate since 2000. The sector is
becoming highly attractive to foreign investors,
with USD11.5 billion invested in 2007, a 41.1 %
increase on the previous year. By April 2010,
there were 56.32 million active lines in Nigeria –
Africa’s highest tele-density at over 40 %. Even
though only 20 % of the country, mainly urban
areas, has mobile coverage, this is enough to
provide for a number of highly competitive
mobile networks. Attempts are being made,
through the Wire Nigeria (WiN) project and State
Accelerated Broadband Initiative (SABI) to roll
out broadband access across the country. At the
close of 2007 there were 117 internet service
providers in Nigeria, with an estimated 6.75
users per 100 inhabitants. As well as a vast
quantity of daily, Sunday and weekly newspapers
and several privately owned television and radio
stations, the state-owned Nigerian Television
Authority runs a network of television stations
throughout Nigeria. Publicly-funded radio
broadcaster the Federal Radio Corporation has
25 stations across the country, claimed to be the
largest radio network in Africa.
The Nigerian film industry, known as Nollywood,
is the second largest in the world, producing at
least 200 videos a month. One 2008 estimate put
its worth at at least USD250 million, although
some insiders valued it as highly as USD2.3
billion.

Despite oil production falling by 8.2 % in 2008,
the National Bureau of Statistics and OECD have
estimated that the oil and gas sector constituted
32.3 % of GDP by the end of 2009 – but provided
about 80 % of government revenue. It is
estimated that the country has 36 billion barrels
of oil, with vast natural gas reserves of over 5.215
trillion cubic meters (well over 100 trillion cubic
feet).
The agriculture sector – long neglected in favor
of oil – is slightly larger, contributing 36.5 % of
GDP in 2009, thanks to a good harvest. The
sector, which accounts for about two thirds of the
nation’s employment, grew by 7.4 % in 2008,
slightly below the 2007 figure. Notable
agricultural products include palm oil, cocoa and
groundnuts. Significant crops are sugar cane,
yams, cassava, taro, pearl millet, citrus fruits,
sorghum, cowpeas and maize. The neglect of this
sector has lead to Nigeria needing to import food,
as production fails to keep up with urban growth.
Given the continuing problems in the troubled oil
sector and new biofuels potential, it seems likely

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(30,000 km) are paved, are in poor condition due
to a combination of heavy traffic and substandard
maintenance. Public private partnerships in many
states are finally seeing some much-needed
repairs to the road network, and developments of
roads such as the Lagos-Ibadan expressway. The
country also has 5,300 miles (8,600 km) of
waterways, and there is a programme underway
to revitalize major ports including Bonny,
Calabar, Koko, Port Harcourt and Sapele, in
partnership with the private sector. The two
biggest airports are Abuja International and
Lagos Murtala Muhammed – also being expanded
through a public private partnership – although
there are almost 70 smaller ones.

Infrastructure
In 2006, after protracted negotiations, Nigeria
became the first African country to completely
pay off its Paris Club group of debtors – an
estimated USD30 billion. Since 2008, the country
has been developing a Medium Term Sector
Strategy for growth for the years 2009-11, as a
means of more clearly co-coordinating the
government’s medium-term goals. Former
president Yar’Adua identified seven key sectors
as part of his Seven Point Agenda as a means of
diversifying away from oil. Notably, these include
transport, power generation, education, reducing
corruption and combating insurgency in the
Niger delta. President Jonathan has emphasized
the need to continue developing these areas, in
particular power generation, education and
eliminating corruption.
This agenda broadly correlates with the
National Economic Empowerment and
Development Strategy (NEEDS) and Vision 2020
plan as a means of putting Nigeria in the world's
leading 20 economies by 2020. The three
strategies aim to stimulate GDP growth, reduce
poverty, ensure a stable economy and generate
employment.
However, many of the 120,000 miles (193,000
km) of roads, of which less than 19,000 miles

Plans are also in progress to privatise Nigeria’s
railway network, with 30-year concessions
granted to private companies. The government
aims to reopen rail links between Nigeria’s
seaports and inland container depots as a means
of reducing pressure on the roads and finish the
11.8 mile (19 km) long Ajaokuta-Itakpe-Warri
standard gauge line. There are also about 2,200
miles (3,505 km) of narrow gauge railways in
Nigeria, although these are unsuitable for heavy
freight.
Disruptions to gas supplies and a drop in
reservoir water levels adversely affected the
country’s power generating capabilities in 2008.
Power outages are having a knock-on effect on
the manufacturing sector. However, the
government has launched an ambitious USD4060 billion plan over the next six years to address
this, in conjunction with the private sector, as
well as performing emergency repairs in the
short term.
Although these are big problems, they aren’t
insurmountable. President Jonathan’s
administration has identified Nigeria’s weak
spots. It is also ensuring that actions are taken
so that the country can take its place at the table
with the 20 other leading economies in 2020.

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Nigeria: Geographical
Overview
Jewel of West Africa
Nigeria is situated in the West African region
and lies between longitudes 3 degrees and 14
degrees and latitudes 4 degrees and 14 degrees.
It has a land mass of 923,768 sq.km. It is
bordered to the north by the Republics of Niger
and Tchad; it shares borders to the west with the
Republic of Benin, while the Republic of
Cameroun shares the eastern borders right down
to the shores of the Atlantic Ocean which forms
the southern limits of Nigerian Territory. The
800km of coastline confers on the country the
potentials of a maritime power. Land is in
abundance in Nigeria for agricultural, industrial
and commercial activities.
At its widest, Nigeria measures about 1,200 km
from east to west and about 1,050 km from north
to south. The country's topography ranges from
lowlands along the coast and in the lower Niger
Valley to high plateaus in the north and
mountains along the eastern border. Much of the
country is laced with productive rivers. Nigeria's
ecology varies from tropical forest in the south to
dry savanna in the far north, yielding a diverse
mix of plant and animal life.
The broad, mostly level valleys of the Niger and
Benue rivers form Nigeria's largest physical
region. The Niger enters the country from the
northwest, the Benue from the northeast; the two
rivers join in Lokoja in the south central region
and continue south, where they empty into the
Atlantic at the Niger Delta. Together, they form
the shape of a Y. Population densities and
agricultural development are generally lower in
the Niger and Benue valleys than in other areas.
North of the Niger Valley are the high plains of
Hausaland, an area of relatively level topography
averaging about 800 m above sea level, with
isolated granite outcroppings. The Jos Plateau,
located close to Nigeria's geographic center, rises
steeply above the surrounding plains to an
average elevation of about 1,300 m. To the
northeast, the plains of Hausaland grade into the
basin of Lake Chad; the area is characterized by

somewhat lower elevations, level terrain, and
sandy soils. To the northwest, the high plains
descend into the Sokoto lowland.
Southwest of the Niger Valley (on the left side of
the Y) lies the comparatively rugged terrain of the
Yoruba highlands. Between the highlands and the
ocean runs a coastal plain averaging 80 km in
width from the border of Benin to the Niger Delta.
The delta, which lies at the base of the Y and
separates the southwestern coast from the
southeastern coast, is 36,000 sq km of low-lying,
swampy terrain and multiple channels through
which the waters of the great river empty into the
ocean. Several of the delta's channels and some of
the inshore lagoons can be navigated.
Southeastern coastal Nigeria (to the right of the
Y) consists of low sedimentary plains that are
essentially an extension of the southwestern
coastal plains. In all, the Atlantic coastline
extends for 850 km. It is marked by a series of
sandbars, backed by lagoons of brackish water
that support the growth of mangroves. Large
parts of Africa's Bight of Benin and Bight of Biafra
fall along the coast. Because of the Guinea
Current, which transports and deposits large
amounts of sand, the coastline is quite straight
and has few good natural harbors. The harbors
that do exist must be constantly dredged to
remove deposited sand.
Inland from the southeastern coast are
progressively higher regions. In some areas, such
as the Udi Hills northwest of Enugu, escarpments
have been formed by dipping rock strata. Farther
east, along Nigeria's border with Cameroon, lie
the eastern highlands, made of several distinct
ranges and plateaus, including the Mandara

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Mountains, the Shebeshi Mountains, the Alantika
Mountains, and the Mambila Mountains. In the
Shebeshi is Dimlang (Vogel Peak), which at 2,042
m is Nigeria's highest point.

rivers that merge into the Yobe River, which then
flows along the border with Niger and empties
into Lake Chad.

Climate
Land Boundaries
Nigeria shares borders with Cameroon (1,690
kilometers) in the east, Niger (1,497 kilometers)
in the north, Benin (773 kilometers) in the west,
and Chad (87 kilometers) in the northeast.

Disputed Territory
Nigeria and Cameroon have held bilateral
meetings to resolve disputes concerning the two
countries’ shared land and maritime boundary.
Nigeria has not fulfilled its pledge to cede the
Bakasi Peninsula, which juts into the Gulf of
Guinea, to Cameroon, despite the International
Court of Justice’s ruling in favor of Cameroon in
2002.

Length of Coastline

Nigeria’s coastline along the Gulf of Guinea
totals 853 kilometers.

Maritime Claims
Nigeria claims a territorial sea of 12 nautical
miles, an exclusive economic zone of 200 nautical
miles, and a continental shelf to a depth of 200
meters or to the depth of exploitation.

Topography

Nigeria has five major geographic regions: a low
coastal zone along the Gulf of Guinea; hills and
low plateaus north of the coastal zone; the NigerBenue river valley; a broad stepped plateau
stretching to the northern border that has
elevations exceeding 1,200 meters; and a
mountainous zone along the eastern border,
which includes the country’s highest point,
Chappal Waddi (2,419 meters).

Principal Rivers
Nigeria has two principal river systems: the
Niger-Benue and the Chad. The Niger River, the
largest in West Africa, flows 4,000 kilometers
from Guinea through Mali, Niger, Benin, and
Nigeria before emptying into the Gulf of Guinea.
The Benue, the Niger’s largest tributary, flows
1,400 kilometers from Cameroon into Nigeria,
where it empties into the Niger River. The
country’s other river system involves various

Temperatures across the country are relatively
high with a very narrow variation in seasonal and
diurnal ranges (22-36t). There are two basic
seasons; wet season which lasts from April to
October; and the dry season which lasts from
November till March. The dry season commences
with Harmattan, a dry chilly spell that lasts till
February and is associated with lower
temperatures, a dusty and hazy atmosphere
brought about by the North-Easterly winds
blowing from the Arabian peninsula across the
Sahara; the second half of the dry season,
February - March, is the hottest period of the year
when temperatures range from 33 to 38 degrees
centigrade. The extremes of the wet season are
felt on the southeastern coast where annual
rainfall might reach a high of 330cm; while the
extremes of the dry season, in aridity and high
temperatures, are felt in the north third of the
country.

Vegetation

In line with the rainfall distribution, a wetter
south and a drier northern half, there are two
broad vegetation types: Forests and Savanna.
There are three variants of each, running as near
parallel bands east to west across the country.
Forests Savanna Saline water swamp Guinea
Savanna Fresh water swamp Sudan Savanna
Tropical (high) evergreen Sahel Savanna
Rainforest.

P a g e | 13
Oil and Gas, by value, are the most important
minerals. They are exploited and produced in the
Niger Delta basin and off-shore on the continental
shelf and in the deep-sea of the territorial waters.
Nevertheless, there are significant non-oil
mineral deposits on land many of which have
been identified and evaluated: coal, iron ore,
gypsum, kaolin, phosphates, lime -stone, marble,
columbine, baryte and gold.

There is also the mountain vegetation of the
isolated high plateau regions on the far eastern
extremes of the country (Jos, Mambilla, Obudu).
The savanna, especially Guinea and Sudan, are
the major grains, grasses, tubers, vegetable and
cotton growing regions.
The Tropical evergreen rain forest belt bears
timber production and forest development,
production of cassava; and plantation growing of
fruit trees - citrus, oil palm, cocoa, and rubber,
among others.

Resources: Agricultural, Mineral and Marine
Nigeria, in addition to its huge population is
endowed with significant agricultural, mineral,
marine and forest resources. Its multiple
vegetation zones, plentiful rain, surface water and
underground water resources and moderate
climatic extremes, allow for production of diverse
food and cash crops. Over 60 per cent of the
population is involved in the production of the
food crops such as cassava, maize, rice, yams,
various beans and legumes, soya, sorghum,
ginger, onions, tomatoes, melons and vegetable.
The main cash crops are cocoa, cotton,
groundnuts, oil palm and rubber. Extractions
from these for export and local industrial use
include cocoa flour and butter, rubber crumb,
vegetable oil, cotton fibre and yarn. The rain
forests have been well exploited for timber and
wood products of exotic and popular species.

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Nigeria: Socio-Cultural
Overview
Nigeria Turns 50
October 1, 2010 will be a day of celebration for
Nigeria: a historic milestone marking 50 years of
independence, five decades of progress, a half
century spent traveling the difficult road from a
socially fractious colonial outpost to a strong,
united and prosperous nation.
Nigeria gained independence from Britain in
1960, but the country itself was formed in 1914
when the British government amalgamated three
of its colonial territories: Lagos, which it annexed
in 1861; the Southern Provinces, over which it
established rule between 1885 and 1894; and the
Northern Protectorate, which it controlled by
1903. Until 1914, the three were governed by
Britain as separate but related territories.
Between 1922 and the constitution signed into
law in 1947, a policy of regional representation
saw increased local involvement in the
government of the country. The constitution of
1954 created regional governments, and the first
federal elections took place in 1959. It was not
until 1963 that Nigeria – which for three years
had existed as a British dominion – broke all ties
with its former colonial master and established
itself as a republic within the Commonwealth.

Population and Geography
Home to a population of around 150 million
people, Nigeria is the most-populous country in
Africa and one of the world's fastest growing
countries, with population growth estimated at a
rate of just over 2.3% a year. The Nigerian people
are a diverse mix of more than 250 ethnic groups,
which can be roughly divided into 50% Muslim,
40% Christian and 10% who hold traditional
indigenous beliefs. The official language is
English, although 478 other languages are spoken
across the country.

Nigeria has a total land area of 923'000 sq km, a
coastline of 853 km and territorial waters that
extend 12 nautical miles out to sea. It is situated
on the west coast of Africa, bordered by the
Atlantic Ocean in the south and Niger and Chad
on the north. Benin lies to the west, while
Cameroon represents the eastern border. The
capital city, Abuja, is in the centre of the country
and has a population of 3m, while Lagos, to the
south-west, is twice its size and has an estimated
population of 18m.
The country's terrain varies considerably, with
lowlands in the south, hills and plateaus in the
central region and plains in the north. Coastal
swamps and tropical forests dominate the
southern terrain, while the north is mostly
savannah and semi-desert.

A Rich Cultural Diversity
With over 250 ethnic groups and a variety of
languages spoken, it’s little surprise that Nigeria’s
culture is so diverse. The country is
internationally famous for its writers and
musicians, with notable artists including writer
Chinua Achebe, juju musician King Sunny Ade,
afrobeat musician Fela Kuti, Nigerian gospel
singer Onyeka Onwenu, writer Ben Okri,
playwright Ken Saro-Wiwa, Nobel prize winning
writer Wole Soyinka, actor Nkem Owoh, director
Chico Ejiro and British/ Nigerian artist Yinka
Shonibare. The Hausa and Fulani, Yoruba and
Igbo make up the three major ethnic groups in
Nigeria. Both Hausa and Fulani come from the
Muslim north. The Yoruba, who come from
southwestern Nigeria, are mostly farmers, and
practice both Islam and Christianity. The Igbo of
the southeast are usually Christian. There is a
notable overlap between organised religion and
traditional indigenous beliefs – it is common for
Muslims and Christians to also observe some
degree of indigenous practices. Smaller groups
include the Ibibio, the Edo, the Tiv and the Nupe.
Thus, some of the cultural factors that have
been documented by studies which accounted for

P a g e | 15
these differences in human conditions and hence
investor scepticism are discussed below.

The “Commanding Heights” Philosophy
This involves state ownership of all major
industries, state mobilization, direction of
investment resources, and state planning. This
policy implies that the state is found in every
sector of the economy, private sector initiative is
restricted while foreign investors see the
economy as an unpredictable economy. Under
successive military governments in Nigeria much
power was concentrated in the Federal
Government, this largely prevented free market
competition and the emergence of a viable
private sector that could accelerate economic
development. Though, with the advent of genuine
democratic governance, the Nigerian government
is said to have considered the privatization of
public enterprises as an alternative option to
getting rid of economic recession, price
fluctuation and technological backwardness.

Military Rule
The emergence of the military on Nigerian
political scene for twenty-nine years prevented
foreign investment because military
authoritarianism was not conducive for the rule
of law which used to be grounds for smooth
capitalist business. Thus, for almost three
decades of military rule in Nigeria, the business
environment suffered many setbacks, this was
because the draconian government removed
professionalism in economic planning and
replaced it with mediocrity. Thus, the growth of
military regimented lifestyles consequently
facilitated the growth of statist culture,
corruption and authoritarianism. As a vicious
circle, authoritarian government built hostile
environment and prevented foreign investment,
while many domestic industries were closed
down under the aegis of bad economic policy and
inflation. Under the regimes of Gen. Ibrahim
Babangida and late Sanni Abacha, Nigeria's
economic development reached its stalemate.
While the former regime introduced SAP that

compounded the economic conditions of
Nigerians, the later perpetuated a lot of human
rights abuse, which subsequently earned Nigeria
sanctions from top capitalist nations like the
United States and the United Kingdom. Though,
the military has been disengaged from Nigerian
politics since May 1999, political analysts opined
that majority of ex-military leaders are still in the
corridors of power.

Entrepreneurial Achievement
While the Nigerian state cannot but accept the
blames being passed on it, it should be noted that
many of its citizens lack the will and the
achievement personality style to aid
development. Experiences in contemporary
Nigerian society have shown that most Nigerians
lack achievement motivation, and often prefer to
engage in activities that are less stressful and less
tasking. Much of their labour power is devoted to
earning illegal profits. Although, government has
recently embarked on activities that will increase
public awareness on the importance of
entrepreneurship for economic growth in a
depressed economy, like that of Nigeria; there are
still many people in the country, who are yet to
understand the need for them to be self reliant
through entrepreneurship.

The Culture of Violence as a Threat to
Capitalist Development
Whether in government enterprises, private
sector businesses or international trades, many
social scientists who have written extensively on
the Neo-liberal economic agenda have argued
that violence an impedes development. Violence
creates hostile environment for economic growth
and also creates fear in business people. A violent
environment can never be conducive for peaceful
trade negotiation. From the Nigeria Civil War of
1967-1970 to several religious clashes in the
North, ethnic clashes in the South, insurgence of
Niger Delta crisis and Political and Sectanan
clashes in the North. Adams (2000) commented
that violent political, ethnic and religious clashes
are evidences of the failure of the Nigerian state.

P a g e | 16
The other constraints for business environment
faced by the firms are as shown in the graph

below.

But now, the Federal Government has
implemented the following reforms to overcome
these constraints and attract investors from
outside.

situation continued to deteriorate until, in 1966, a
group of mostly Igbo army officers launched the
country's first military coup.

Nigerian Media
National state-run television and radio
broadcasting is complemented by state-run radio
and television stations. Radio remains the key
source of information for Nigerians, as television
viewing and internet usage tends to be
concentrated in the affluent population centers in
the cities. There are also more than 100 national
and local newspapers and periodical publications.

From Independence to Civilian Democracy
The early years of Nigeria's independence were
difficult. The regional structure laid out in the
1960 constitution created internal conflicts, with
neighboring regions vying for greater control of
the federal government. Violence and vote rigging
marred the 1964 federal elections, and the

In the years that followed, Nigeria lurched from
one military ruler to the next. There were three
abortive attempts at democratic elections and the
formation of a republic – one of which was
instigated in 1979 by General Olusegun Obasanjo,
the then military head of state who would lead
the country after its return to civilian democracy
20 years later. Despite the efforts of progressive
political thinkers, military rule continued, largely
uninterrupted, throughout the 1980s and 90s.
But out of all this internal strife, Nigeria has
been reborn. The return to civilian democracy in
1999 has ushered in a programme of political,
economic and social reforms that is now bearing
fruit. In 2007, the first civilian handover of power
in the country's history took place, with President
Umaru Yar'Adua taking office after eight years of

P a g e | 17
rule under President Obasanjo, and following
Yar’Adua’s sad death in 2010, a second civilian
transfer was carried out, to President Goodluck
Jonathan.

A Vast Potential, Ready to be realized
The administration of President Jonathan has a
golden opportunity to continue the drive towards

foreign direct investment to spur the drive
towards an industrialized mining sector. Proven
reserves of tin, coal, iron ore, copper, lead and
zinc have been surveyed with a view to
mechanized extraction. There are also significant
gemstone reserves, including sapphire, ruby,
aquamarine, emerald, tourmaline, topaz, garnet,
amethyst, zircon, and fluorspar. The
simplification of the process for securing mining
rights has boosted international interest and
confidence in the sector.
As well as the large under-exploited quantities
of solid minerals, Nigeria also offers plentiful
opportunities for commercial farming. The sector,
while underdeveloped, currently produces a
range of agricultural produce, such as cocoa,
peanuts, palm oil, corn, rice, cassava and yams.
The north of the country also supports livestock
farming.

Banking Reform

prosperity that started more than ten years ago.
A focused policy of privatization, deregulation
and liberalization has opened the door to
investment in Nigeria, and the world's leading
economies have started to pay close attention to
this jewel of the West African coast.
Nigeria is endowed with vast natural resources.
While the oil industry has dominated the
economy for decades – with output of around 2
million barrels a day in 2010 – the administration
is determined to implement a policy of diverse
exploitation of the country's other natural
resources. The Ministry of Mines and Steel
Development is currently overseeing the
exploration and promotion of Nigeria's solid
mineral resources, and is actively encouraging

The radical reform of the banking sector started
in earnest in 2004 and was overseen by the
Central Bank of Nigeria. It led to the consolidation
of Nigeria’s banks, and strengthened the sector
against future shocks. Like the rest of the world,
Nigeria’s banking sector had to come to terms
with the challenges posed by the global financial
crisis. But a bank bail-out in 2009 followed by
decisive action by the strong Central Bank of
Nigeria to audit and evaluate banks and CEOs has
renewed confidence in the sector and put the
country’s banks on a proper footing for sustained
growth.
There exists a banking infrastructure that
complements the vast opportunities on offer to
investors in Nigeria, and with confidence in the
sector growing, Nigeria can be considered well
and truly open for business.

Telecoms Goes from Strength to Strength
The Nigerian telecoms sector is one of the
country's major success stories. Governed by the
Nigerian Communications Commission (NCC), an

P a g e | 18
independent regulator established in 1992, the
industry has thrived following increased
investment. This revolution of the industry was
largely sparked by the entry of mobile operators
into the market in 2001.
The NCC listed tele-density in April 2010 at
56.3% – representing almost 79m subscribers –
compared to 29.98% in December 2007. The farreaching reforms instigated by the NCC have lead
to hundreds of companies offering a variety of
telecom and value-added services, and the
market value of the sector is projected to hit
USD10 billion in 2010. Although foreign direct
investment has flowed into the industry since
2001, it is estimated that a further USD25 billion
will need to be secured if 100% teledensity is to
be achieved by 2020, in line with Nigeria's Vision
2020.
A similar explosion in Internet access and usage
has also taken place, with the most recent reliable
estimates showing almost 24 million Nigerians
using the Internet. Although this means the
proportion of population with Internet access is
relatively low, the NCC has launched a number of
programmes to extend Internet connectivity to as
many users as possible. The State Accelerated
Broadband Initiative (SABI) offers incentives to
the private sector to build and operate
broadband infrastructure in state capitals and
major commercial centers, while the Rural
Broadband Internet Access (RUBI) scheme
encourages providers to extend connectivity to
rural areas.

A Commitment to Tackling Corruption
As part of his inaugural speech in 2007,
President Yar'Adua laid out his commitment to
tackling the issue of corruption, which in the past
had plagued all levels of government in Nigeria,
and his successor, President Jonathan, has vowed
to continue his work. As well as the negative
impact that government-level corruption had on
the day-to-day lives of ordinary citizens, it also
had severe consequences for the level of foreign

direct investments the country could attract. A
combination of the work carried out by both the
Economic and Financial Crimes Commission and
the Attorney General's office, including several
high-profile investigations into the activities of
former state governors, has helped to instill the
idea that corruption will not be tolerated in – and
is incompatible with – a vibrant, prosperous
Nigeria.

Looking to the Future
It cannot be denied that the last 50 years for
Nigeria have sometimes been difficult.
Furthermore, it is clear that there are still
significant challenges ahead. The country's
infrastructure requires immediate attention if it
is to support the growing economy; the country's
resources must be carefully managed and
exploited in a way that will benefit the population
as a whole; and the relative peace in the Niger
Delta must be maintained if the country is to
remain stable. But as the country reaches a halfcentury of independence, there exists the will and
the opportunity for Nigeria to meet these
challenges and take the next step forward in its
history – to realize its vast potential and step into
the limelight as a strong, secure and open global
economy.

P a g e | 19

Nigeria: Demography
Nigeria is the most populous country in Africa
and 2nd economic power in the continent. It
consists of 36 federal states which has more than
700 local governments. The economy is mainly
driven by oil production.
The population of Nigeria is 174,507,539 (July
2013 est.) estimates for this country explicitly
take into account the effects of excess mortality
due to AIDS; this can result in lower life
expectancy, higher infant mortality, higher death
rates, lower population growth rates, and
changes in the distribution of population by age
and sex than would otherwise be expected. The
age wise distribution is as follows
Age (years)
0-14
15-24
25-54
55-64
Above 65

Population
(%)
48.3
19.3
30.1
3.8
3

Male (in
Mns)
39.12
17.20
25.84
3.01
2.39

Female (in
Mns)
37.33
16.45
26.69
3.60
2.84

Total dependency ratio of Nigeria is around
89%. Again the youth dependency ratio is 83.8%,
elderly dependency ratio is 5.2% and potential
support ratio is 19.3%. The Median age of total
population is 17.9 years. Males have median age
17.4 years, whereas for female it is 18.4 years
The Population Growth rate for the year 2013 is
2.54%. The birth rate is 38.78 and death rate
is 13.2. The overall migration rate has a negative
trend which is -0.22. The 49.6% population
resides in urban and it is growing at a rate of
3.75%. The most populous cities are Lagos
(10.203 million); Kano (3.304 million); Ibadan
(2.762 million); Abuja (1.857 million); Kaduna
(1.519 million). The overall sex ratio is 943.33.
The life expectancy of entire population is 52.46
years. Males have a life expectancy of 49.35 years,
whereas female have slightly higher life
expectancy of 55.77 years. The total literacy rate
is 61.3% which includes male literacy rate 72.1%

and Female literacy rate is 50.4%. Total health
expenditure for the year 2011 was 5.3% of GDP.
Nigeria is the most populous country in Africa,
the second biggest economy, the third largest
military power and the biggest oil producer (10th
oil producer in the world). Its seven most
populous cities each house more than one million
people, and about one out of two West Africans is
from Nigeria. Since its return to democracy in
1999, Nigeria has enjoyed 13 years of
uninterrupted democratic rule. However, security
concerns are on the rise, in particular since the
emergence of the radical Islamist sect Boko
Haram which has killed more than 1 000 people
since 2009. Moreover, Movement for the
Emancipation of the Niger Delta (MEND)
militants have abandoned a three-year-old
ceasefire. The successful political transition from
a northern to a southern leader in April 2011
proved that “a Nigerian, irrespective of where he
or she comes from, who is popular with Nigerians
generally has a good chance of winning the
presidency” (Ambassador Bristol). North-South
antagonism will continue to play a visible role in
Nigerian politics. It is ranked 156th out of 187
countries in Human Development Index.
(Sourece: Federal Ministry of HRD, Nigeria)

P a g e | 20

Nigeria: Educational
Overview
Nigeria has made considerable progress in the
domain of education. The education system in the
country is supervised by the state. There are 27
federal and state-owned polytechnics in Nigeria.
Nigeria is making a steady progress in the
development of education. Many universities and
schools have been established by the state.
Primary education in Nigeria is in the native
language but brings in English in the third year.
Higher Education has developed considerably
over the years, which has resulted in a healthy
literacy rate. Education in Nigeria is managed by
the state.
Nigeria operates on a 9-3-4 system, i.e. primary
& Junior Secondary School continues for 9 years,
Senior Secondary for 3 years and University first
degree is for 4 years. Nigeria currently has 36
states with a Federal Capital Territory and a
population of over 150 million people. Of this
population, approximately 30 million are
students. English is the only language used in
schools, for reading, writing and speaking.
Education in Nigeria is the shared responsibility
of the federal, state and local governments. The
Federal Ministry of Education plays a dominant
role in regulating the education sector, engaging
in policy formation and ensuring quality control.
However, the federal government is more directly
involved with tertiary education than it is with
school education, which is largely the
responsibility of state (secondary) and local
(primary) governments. The education sector is
divided into three sub-sectors: basic (nine years),
post-basic/senior secondary (three years), and
tertiary (four to seven years, depending on the
major or course of study). Education in Nigeria is
provided by public and private institutions.

According to Nigeria’s National Policy on
Education (2004), basic education covers
education given to children 3-15 years of age,
which includes pre-primary programs (ages three
to five), and nine years of formal (compulsory)
schooling consisting of six years of primary and
three years of junior secondary. Post-basic
education includes three years of senior
secondary education in either an academic or
technical stream. Continuing education options
are provided through vocational and technical
schools. The tertiary sector consists of a
university sector and a non-university sector. The
latter is composed of polytechnics, mono-technics
and colleges of education. The tertiary sector as a
whole offers opportunities for undergraduate,
graduate, vocational and technical education.
There are currently (2011) 117 federal, state and
private universities accredited in Nigeria as
degree-granting institutions
Annually, an average of 1.5 million students
take the Unified Tertiary and Matriculation
Examination (UTME) for entrance into Nigerian
universities, polytechnics and colleges of
education. Universities have the capacity to
absorb less than 40 percent of these test takers.
The other 60 percent tend to go to their second
and third choice categories of institutions—
polytechnics and colleges of education. Many
Nigerian students also apply to institutions
abroad. In 2011, 40 percent of the students who
sat for the UTME made the minimum cut-off
grade of 200 (out of 400) for entry into Nigerian
universities.
There are currently various government
reforms and initiatives aimed at improving the
Nigerian educational system. These include the
upgrade of some polytechnics and colleges of
education to the status of degree-awarding
institutions, the approval and accreditation of
more private universities, and the dissemination
of better education-related data, including the
recently published Nigerian Educational

P a g e | 21
Statistics (a publication assisted by USAID among
others).

short of addressing the educational needs of
the country. As a result, an increasing number
of families and students are looking at
alternative educational opportunities within
the region and further abroad.

Primary and Secondary School
Primary education (grades 1-6) is free and
compulsory, and offered to children aged 612. The curriculum is geared toward
providing permanent literacy, laying a sound
basis for scientific, critical and reflective
thinking, and also in equipping children with

Approximately 60 percent of the population
will be between the ages of 13 and 45, fall far

the core life skills to function effectively in
society.

Secondary School
A majority of senior secondary
school students proceed in the academic
stream from junior secondary school.
However, there is also a technical stream, in
addition to vocational training outside of the
school system, or apprenticeship options
offering a range of terminal trade and craft
awards.
Private organizations, community groups,
religious bodies, and the federal and state

governments establish and manage
secondary schools in Nigeria. All private and
public schools offer the same curriculum but
most private schools include the Cambridge
International Examination curriculum, which
allows students to take the IGSCE
examinations during their final year in high
school. It is also important to note that some
private schools offer GCE A-levels, which
usually serve as a gap year after graduation
for students that are interested.
Students take the Senior Secondary
Certificate Examination (SSCE) at the end of
grade 12. The Senior
Secondary Certificate (SSC) is awarded to
successful candidates. The certificate lists all
subjects in which the student is successful.
The SSCE replaced the West African GCE O
and A levels in 1989, although those
examinations are still available to students
who wish to take them (see above). The SSC is
issued by the West African Examination
Council (WAEC) or the National Examination
Council (NECO), depending on the
examination board used.
Technical & Vocational Education
Technical and vocational education is
available for graduates of junior secondary
school. A two-tier system of nationally
certified programs is offered at science
technical schools, leading to the award
of National Technical/Commercial
Certificates (NTC/NCC) and Advanced
National Technical/Business Certificates.
The lower level program lasts three years
after Junior Secondary School and is
considered by the Joint Admission and
Matriculation Board as equivalent to the SSC.
The Advanced program requires two years
of pre-entry industrial work experience and
one year of full-time study in addition to the
NTT/NCC. The advanced degrees are typically

P a g e | 22

considered equivalent to an undergraduate
degree. All certificates are awarded by
the National Business and Technical
Examinations Board (NABTEB).

Tertiary Education
Presently there are 117 universities; 36
federal, 36 state and 45 private universities.
The National Universities Commission (NUC)
is the government umbrella organization that
oversees the administration of higher
education in Nigeria. The 36 federal
universities and dozens of teaching hospitals
and colleges are under its purview. State
governments have responsibility for the
administration and financing of the 36 state
universities. The NUC approves and accredits
all university programs.
In addition to universities, there are 59
federal and state polytechnic colleges and
several privately owned polytechnics,
monotechnics and colleges of education
across the country.

Admissions
For entrance into a Nigerian institution of
higher learning, students are required to take
the Unified Tertiary Matriculation
Examination (UTME).. The minimum mark
required on the UTME for admission to
university is 200 (out of 400). In addition,
each institution has cut off marks for various
programs, so a minimum of 200 marks does
not guarantee admission, especially for highdemand programs and institutions.
Universities also conduct additional screening
before a final admission decision is made. For
the UTME, students must take exams in
English and three subjects related to their
proposed major. All admissions to bachelor
degree programs at all Nigerian universities
are organized through the Joint Admissions

and Matriculation Board (JAMB). Private
universities are far less popular. The
University of Lagos was the most popular
choice with 99,195 applicants (for 6,106
places), followed by Ahmadu Bello University
(89,760), the University of Nigeria Nsukka
(88,177), Nnamdi Azikiwe University
(84,719) and the University of Benin
(80,976).

Technical and Vocational Higher
Education
Higher technical education is provided at
technical colleges, polytechnics and colleges
of education. Entry to colleges and
polytechnics is based on JAMB-administered
entrance examinations combined with results
from secondary and vocational schools.
The National Diploma is a two-year
program and grants access to Higher National
Diploma programs. The Higher National
Diploma (HND) is a two-year program that
typically requires one year of work
experience after the National Diploma, which
is required for admission. The HND is not
equivalent to a university degree. HND
graduates will typically take a one year
postgraduate diploma certificate before
applying for a master’s degree in any Nigerian
university.
Education has always been an instrument
of empowerment for Nigerian population.
And, the country is not lagging behind, at all,
in exploring the latest educational
developments. Online learning is one of the
most innovative ideas education has ever
developed.
The reason for taking up this latest
educational approach is quite clear. On the
one hand, online education enables Nigerian
students to make ways to international

P a g e | 23

universities through distance learning
courses, and on the other hand, sitting at the
peaceful environment of home these students
prepare themselves for globally lucrative
jobs.

Technologically Advanced Learning
With simply having a PC or tablet and an
internet connection Nigerian students can
reach out to the classrooms of world’s best
universities carrying legacy of past and
excellence of present, say, UK universities.

Cost-friendly learning
Yes, it may sound unbelievable, but
technology and Nigerian governmental
initiatives have made it possible for students
of Nigeria to get international education in
most affordable price. When cost of higher
education is growing to the limits of
impossibility worldwide, online UK distance
learning courses bring a whole new
educational experience for Nigerian students
for some nominal monitory investments.

Job-Centric Education
Online distance education features some
incredible benefits by its own virtue. And,
when this virtue is consolidated by eminence
of UK educational excellence students can
obviously expect some phenomenal
achievements. UK universities involve global
industrial leaders and prominent employers
in designing their distance learning courses,
so that students can be benefited by truly jobcentric education.

Practical & Theoretical Knowledge All at
the Same Time
Besides, these distance courses come with
so great length of flexibility in schedule that
students get affluent scopes to invest their
spare time into some relevant full-time jobs,
doing which they not only become financially

strong enough to sponsor their own study,
but also experientially potent enough to
impress employers when they step into their
job search. Many students are seen to take
some apprenticeships beside their convenient
schedule for study.

Freedom of Study
The greatest flexibility of online
study with UK universities is the 24/7
availability of online tutors whom students
can contact as per their convenient time for
any study related assistance.

World Masters’ Views
UK university-based distance learning
courses are not just peerless in their content,
as excellence has been ascribed on them by
the world, but also they provide their
students to get expert advice from industrial
gurus whose suggestions and experience
enrich online students. These masters of
industry give their knowledge depth and
dignity, and with these matchless expert
advices Nigerian distance learners make their
high claim for the best jobs in the global
industry.
Nigeria has indeed started its rise to a
successful future where students will surely
make the country proud with unprecedented
achievements, and UK distance education is
paving their way to a glorious tomorrow.

Online education is highly beneficial in
Nigeria
One must continue their higher education,
in order to earn a college degree, that will
which fetch them better jobs. Students in
developing nations like Nigeria, usually start
working right after they pass out of school as
most don’t have an option.
Nigeria does have good colleges but as they
are not funded by the government, the

P a g e | 24

colleges don’t run properly. Politics has taken
a toll on the education system, harming it in
ways more than one. However, technology
has saved Nigerian students as more than half
the population these days resort to online
education. Renowned colleges and
universities from all over the world provide
online study programmes which help
students achieve undergraduate and
postgraduate education. Recently, Intel
launched a solution of education that will
help learners in Nigeria, access low-cost and
free resources of digital learning. The
education solution, Intel Explore and Learn
Marketplace, has been launched and is
designed is such a way, so as to help learners
of various age groups. Learners can benefit
from this education solution through learning
materials that are interactive like books,
instruction videos, examination papers and
podcasts.
The education solution was launched in
Lagos and is supposed to help students at
elementary and advanced education levels.
According to the country manager of Intel
West Africa, Bunmi Ekundare, the education
solution will benefit students as well as
education community stakeholders, like
parents and teachers.
With these new educational tools and
online study programmes, students in Nigeria
are bound to do well for themselves and
achieve success.

MOOC Targets High as the
Demand Rises
MOOC is a comparatively new online
learning phenomenon that has developed
quite fast from what it was five years
ago. MOOC is a household name now with
considerable media attention and major
interest from higher learning institutions.

Observing the growing reputation, the
venture capitalists are considering it as a
lucrative business opportunity to be
exploited properly. MOOC can be seen as an
an extended version of the existing distance
learning approaches through online with
regard to free access to courses and
convenience; it also comes with an
opportunity to think afresh. This new
education system is eager to learn from the
introducing business models targeting
customers comparatively new to the market;
also planning working under new policies to
approach a diverse environment.

MOOC offers an engaging learning
format
Learners interested about higher education
are more enthusiastic about massive open
online courses as they seem to be more
helpful according to the news and reviews.
Students completed MOOCs say their user
friendly format is the biggest attraction.
MOOCs, have always strived hard to rope in
world-class instructors and exploit the
technical advancement to offer more
engaging programmes to the learners; so
their classes with video instruction that they
used from the beginning drew attention of the
worldwide learners toward this fresh
education system.

MOOCs growing to offer more
Although people opting for online
education have varied range of reactions
regarding the classes on internet, curiosity for
MOOCs has always been common and is
increasing every day. Access to quality
material and innovative ways of gaining
shared learning experiences are the most
important ones among the many benefits that
open online courses include. Most studies
confirm that learners experienced MOOC own
skill and aptitude in social networking via

P a g e | 25

internet, helpful technical ideas, work
management qualities and many other skills
essential to the recent people but haven’t
been widely shared so far. With millions of
students applying for their courses and
providers investing more efforts to allow it to
be more effective, MOOCs are heading toward
making a history for sure.


Nigeria: Political
Overview
Before the amalgamation of the Northern
Protectorate, Southern Protectorate and the
Lagos Colony in 1914, there was no country
called Nigeria. Each region existed
independently of the other with their distinct
culture, history, law and customs. In 1861, the
Lagos colony became parts of the British
Empire in Africa. The smooth penetration of
Lagos paved way for the British overlords to
seek further incursion through Native
administration into the Southern region, of
what is now called Nigeria. In the process of
winning the territory for their metropolis, the
British overlords were left with two options,
one to impose their ways of life on the native
population, two, to adapt the cultural
practices of the native population to their
culture in order to put the British as people
that also appreciated the traditions of the
African people.
Considering the long time effects of this on
the colonial occupation of Nigeria, the British
used the second option and thereafter
introduced the Indirect Rule System of
government. It was this system that brought
the so called hurriedly conceived 1914
amalgamation of the two protectorates and
the Lagos state colony which gave birth to the
Nigerian colonial state and the Nigerian
culture. For most parts of the colonial era,
agriculture was the mainstay of the Nigerian
economy (Dibie, 2000), up till the 1960s.
The agricultural economy provided both
food and cash crops for Nigerians. A large
portion of the Nigerian government revenues
was coming from this sector. When oil was
discovered in large quantity in Oloibiri in

P a g e | 26

Rivers State in 1956, government started
shifting its attention to oil relying on its
exportation to metropolitan nations.
Economic development at this period was
largely determined by government who were
controlling over 60% of the oil wealth.

Nigeria’s Political Structure
Constitutionally Nigeria is a federal
republic with 36 states and a federal capital
territory, Abuja. It has the elements of US
with president holding executive power and
of the UK make up of upper and lower houses.

Federal Ministry of Foreign Affairs
The Ministry of Foreign of Affairs (MFA) is
the statutory department of the Federal
Government of Nigeria charged with the
responsibility for the formulation,
articulation, and pursuit of Nigerian foreign
policy trust and objectives. These objectives
reflect the domestic, political, economic,
technological, social and cultural aspirations
of the Nigerian people.
Foreign Affair Minister-Viola Onwuliri
(2013–present)

Nigeria has made it into the Top 20
Global Destinations for FDI
Nigeria receives the largest amount of
Foreign Direct Investment (FDI) in Africa.
Foreign Direct Investment inflows have been
growing enormously over the course of the
last decade: from USD1.14 billion in 2001 and
USD2.1 billion in 2004, Nigeria’s FDI reached
USD11 billion in 2009 according to UNCTAD,
making the country the nineteenth greatest
recipient of FDI in the world

Reforming and strengthening
institutional frameworks
It is testament to the country’s newfound
political stability that in 2010 Nigeria has

avoided a potentially dangerous political
vacuum, instead seeing the peaceful
transition of power from Umaru Yar’Adua to
his former vice-president Goodluck Jonathan.
At the beginning of 2009, few could have
expected the next year to be marked by a new
president, followed by a succession of
political scandals as President Jonathan made
new and vigorous attempts to stamp out the
corruption that has dogged the Nigerian
political sphere for so long.

Investment Framework And Bodies
Specific measures were taken include
repeal of two legislations (i) Exchange control
act of 1962, (ii) Nigeria Enterprises
Promotion Decree of 1962. Both these acts
restricted and discouraged foreign investors.
In 1995, the Nigerian Investment
Promotion Commission Act laid out the
framework for Nigeria’s investment policy.
Under the Act, 100% foreign ownership is
allowed in all industries except for oil and
gas, where investment is constrained to
existing joint ventures or new productionsharing agreements. Investment from both
Nigerian and foreign investors is prohibited
in a few industries crucial to national
security: the production of arms and
ammunition, and military uniforms. Investors
can repatriate 100% of profits and
dividendsIn January alone, foreign direct
investment (FDI) inflow into Nigeria was
estimated at $5.2bn (N800bn).

National Competitive Council Of Nigeria
The government has taken some steps to
safeguard these investments. The
inauguration of the National Competitiveness
Council of Nigeria, by President Jonathan in
February this year, is a step in this direction.
The 18-member board, chaired by the

P a g e | 27

Minister of Trade and Investment, has the
mandate of increasing productivity and sales
for local businesses, as well as the creation of
more markets for made in Nigeria products.
The council is expected to further improve
Nigeria’s global competitiveness ranking.

Legal Framework For Business Activities
Methods Of Conducting Business
All business enterprises must be registered
with the Registrar-General of the Corporate
Affairs Commission (Registrar of Companies).
A foreign investor wishing to set up business
operation in Nigeria should take all steps
necessary to obtain local incorporation of the
Nigerian branch or subsidiary. Business
activities may be undertaken in Nigeria as a:
(i) Private or Public limited liability company;
(ii) Unlimited liability company;
(iii) Company limited by guarantee;
(iv) Foreign Company (branch or subsidiary
of foreign company)
(v) Partnership/Firm;
(vi) Sole Proprietorship;
(vii) Incorporated trustees;
(viii) Representative office

Privatization

Under the privatization programme as
announced on July 20, 1998 by H.E Gen
Abdulsalami Abubakar, Government will
retain 40% of the telecom, electricity,
petroleum refineries, coal and bitumen
production, tourism, and spill-over from the
first phase of privatization equities of the
affected enterprises whilst 40% will be
alienated to strategic investors with the right
technical, financial and management
capabilities. The remaining 20% will be sold
to the Nigerian public through the Stock
Exchange.
President Olusegun Obasanjo in his
Presidential order to the Vice President of the
Federal Republic of Nigeria dated 6th July
1999, directed that as the first step in the
phased implementation of the
administration's privatization programme,
action was to be initiated to enable the sale of
shares listed on the Lagos Stock Exchange
and owned by the Federal Government and
its agencies in Commercial and Merchant
Banks, Cement Plants, Petroleum Marketing
Companies
The sales are to be completed by December,
1999 and Core Investors are to be
encouraged to buy into any of the privatized
enterprises which will be paid in foreign
currencies. The second phase will consist of
hotels and vehicles assembly plants, amongst
others. The third phase will involve work on
the companies currently being prepared for
privatization or currently being audited,
including NEPA, NITEL, NAFCON, Nigeria
Airways, Refineries, etc

EFCC
EFCC is a financial unit which is charged
with the responsibility of coordinating the
various institutions involved in the fight
against money laundering and enforcement of

P a g e | 28

all laws dealing with economical and
financial crimes in Nigeria. EFCC has been
successful not only in creating anticorruption awareness among Nigerians but
also in proven cases of economic and financial
crimes. Till date commission has achieved
more than 500 convictions. Besides
commission has made seizures and
recoveries of well in excess USD 6.5 billion.
EFCC has become a barometer for public and
private sector functionaries, a benchmark of
national growth and development and a
reference institution for attaining corporate
governance in Nigeria. Nigeria has lost more
than USD300billion to corruption. EFCC has
been strengthened to combat with this
monster.

TCP (Transparency Clearance Platform)
To assist foreign investors government has
designed TCP so that prospective foreign
investors can verify contract offers and
proposals before jumping at them.TCP can be
accessed through www.efccnigeria.org or
through telephone hotline provided on
websites.
The image of Nigeria has improved
considerably in the recent years. It is bound
to improve because of commitment of the
government to tackle economic and financial
crimes. Foreign investors have been coming
to Nigeria in droves from all over the world
over the last few years and they have taken
advantage of the current congenial business
environment created by the government to
step up their volume of investments


Nigeria: Legal
Framework
Company registration
Nigeria is essentially a free enterprise
country, subject only to regulations as are
necessary for the national interest.
Registration of companies in Nigeria is a
Federal law. Thus, company registration
processes in Nigeria are national and the
same procedures apply to all parts of the
country. The authority charged with the
responsibility of registering companies is the
Corporate Affairs Commission CAC).
The CAMA provides, with certain
exceptions, that no foreign company shall
carry on business in Nigeria unless it is
incorporated in Nigeria. The three primary
types of incorporated companies all of which
could be public or private companies are:
unlimited liability company, company limited
by guarantee and company limited by shares.
The unlimited liability company holds little
or no interest for investors as the liability of
its members as no limit. A company limited
by guarantee limits the liability of its
members to the amount of their respective
guarantees but this type of company is
typically not for commercial purposes. The
most common type of company for
investment purposes is the company limited
by shares in which liability of the members is
limited to the amount, if any, unpaid on the
shares they hold respectively.
To register a limited liability company in
Nigeria, the promoters are required to
comply with the requirements set out by the
law under the Act. There must be a minimum
of 2 shareholders and 2 directors. The

P a g e | 29

minimum share capital for a private company
is N10,000 while that for a public company is
N500,000 However, a company wishing to
employ expatriates will need to have a
minimum share capital of N10,000,000 in
order to meet the minimum share capital
requirement for expatriate quota application.
In addition to the memorandum and articles
of association, the promoters of the new
company are also required to fill and submit
the following incorporating documents.

Foreign Enterprises, Expatriates &
Immigration
A Nigerian company with foreign investors
is required to be registered with the Nigerian
Investment Promotion Commission (NIPC),
established under the NIPC Act, 1990. The
Immigration Act also requires foreign
investors to obtain Business Permit from the
Federal Ministry of Internal Affairs (FMIA)
before operating or doing business in Nigeria,
albeit a company can commence business
soon after incorporation.

Tax and Fiscal Regulations
Taxation in Nigeria is enforced by the three
tiers of government i.e. Federal, State and
Local Governments, each with its sphere
clearly spelt out in the Taxes and Levies
(approved list for collection) Act of 1998. Of
importance here are tax regulations
pertaining to investors both foreign and local.
The importance of tax regulations cannot be
over-emphasized as most transactions with
any government ministry, department or
agency cannot be concluded without evidence
of a Tax Clearance Certificate certifying that
all taxes due for the three immediately
preceding years of assessment.
The following are some of the relevant tax
regulations in the country.


P a g e | 30

Value Added Tax (VAT)

Companies Income Tax (CIT)

VAT was introduced by the VAT Act No.2 of
1993, to replace the old sales tax. The Value
Added Tax is a consumption tax levied at each
stage of the consumption chain and borne by
the final consumer. It requires a taxable
person upon registering with the Federal
Board of Inland Revenue (FBIR) to charge and
collect VAT at a flat rate of 5% of all invoiced
amounts of tax able goods and services. All
businesses (old and new) are required to be
registered with VAT office as VAT collection
agents.

Tax is payable for each year of assessment
of the profits of any company at a rate of 30%.
These include profits accruing in, derived
from, brought into or received from a trade,
business or investment. Also companies
paying dividends to its shareholders are first
of all obliged to pay tax on its profits at the
companies’ tax rate. Generally in Nigeria,
company dividends or other company
distribution whether or not of a capital
nature made by a Nigerian company is liable
to tax at source of 10%, however, dividends
paid in the form of bonus share or scrip
shares to individual share holders is not
subject to tax, where also, a company is a
shareholder in another company, then such
dividends are excluded from the profits

Personal Income Tax
The legal basis for this tax is found in the
provisions of the Personal Income Tax Decree
(now Act) No. 104 of 1993. Thus every
taxpayer in Nigeria is liable to pay tax on the
aggregate amount of his income whether
derived from within or outside Nigeria, the
salaries, wages, fees, allowances, and other
gains or benefits, given or granted to an
employee are chargeable to tax. The
Employers of labour are deemed to be agents
of the tax authority for the purpose of remit
outside Nigeria, the salaries, wages, fees,
allowances, and other gains or benefits, given
or granted to an employee are chargeable to
tax. The Employers of labour are deemed to
be agents of the tax authority for the purpose
of remitting taxes deducted from salaries due
to employees. A person is deemed resident in
Nigeria if he resides in Nigeria for 183 days in
any 12-month period. Expatriates holding
residence permits are liable to tax in Nigeria
even if they reside in the country for less than
183 days in any 12-month period. Once
residence can be established, the relevant tax
authority of the territory is the tax authority
in which the taxpayer has his place of
residence or principal place of business.

of the company for the purposes of
computation of tax.


Tax Treaties
Nigeria has a number of tax treaties
referred to as "double taxation" agreements
with a number of countries, these are
designed to ensure that the tax payable in
Nigeria on the profits of a Nigerian company
being remitted into the country are reduced
by the amount of "foreign Tax" paid abroad
and vice versa where an overseas company
receives profits from Nigeria that have
already been taxed in Nigeria. Some of these
countries include the UK 1st January, 1988,
France 1st January, 1991, The Netherlands
1st January, 1994, Belgium 1st January, 1990,
Canada 1st January, 1993 and Pakistan 1st
January, 1990.

Nigeria - Investment Incentive
Investing in any of the sectors of the
economy discussed in these 'Doing Business
in Nigeria' pages will require enormous
capital outlay. The Federal Government of
Nigeria taking cognizance of this fact, has
over the years formulated a number of
policies and measures to boost the investor’s
confidence in the country and to prevent the
prospective investor from being consumed by
the overheads costs it will encounter. The
incentives may be grouped under two
headings: Incentives to promote local
production and incentives to promote
exportation.

Incentives to Promote Locals
Pioneer Status
This is a tax holiday status granted by the
Government to industries regarded as high
priority for Nigeria’s economic development.
The grantee enjoys a tax relief for an initial
period of 3 years renewable for a further
period of 2 years. The Industrial Development
(Income Tax Relief) Act cap 179 Laws of
Federation of Nigeria declares a number of

P a g e | 31

industries as pioneer and any company
within the categorized industries producing
products declared as pioneer may apply to
the Nigerian Investment Promotion Council
to be conferred pioneer status.

Labour Intensive Production Mode
Where the area of investment requires
massive labour involvement, there will be a
15% tax concession for 5years. Massive
labour involvement in this regard will entail
hiring 1000 persons or more.

Local Value Added
This essentially applies to engineering
industries that use some finished imported
products as inputs. Such industries are given
a 10% tax concession for 5 years. The idea is
to encourage local fabrication rather mere
assemblage of completely knocked down
parts. Infrastructure Development: Where the
investor embarks on providing basic
infrastructure such as roads, water, electricity
where they do not exist, it will be entitled to
20% tax deduction of the costs of providing
such amenities.

Investment in Economically
Disadvantaged Areas
Investors in such areas are entitled to a
100% tax holiday for 7 years and an
additional 5% depreciation allowance over
and above the capital depreciation.

Research and Development Concessions
The law grants 120% tax-deductible
expenses where the research is to be carried
out in Nigeria, tax concessions are extended
to 140% where the research and
development is on local materials.

Corporate Governance
There is growing emphasis of corporate
governance best practices among Nigerian
companies. The Securities and Exchange

Commission, the Central Bank of Nigeria and
the Corporate Affairs Commission has
published best practices codes in support of
corporate governance in Nigeria. The SEC and
CAC have issued a Code of Corporate
Governance for Public Companies in Nigeria.
The CBN has also issued its Code for Banks
and Other Financial Institutions, and the
National Insurance Commission has issued a
Code for Insurance companies.

Foreign direct investment
Apart from the investment guarantee
assurance of the NIPC ACT countries are
welcome to execute and enter into bilateral
Investment Promotion and Protection
Agreements (IPPA) with the Nigerian
government.

P a g e | 32


Nigeria: Economic
Overview
Prior to 2008, the Oil rich Nigeria was
plagued by political instability, inadequate
infrastructure and poor macroeconomic
management. This was because the military
rulers failed to diversify the economy away
from its over dependence on the capital
intensive oil sector which provides 95%
foreign exchange earnings and 80% of
budgetary revenues.
In August 2000, As a result of signing the
IMF stand-by agreement, Nigeria received a
debt restructuring deal from the Paris Club
and a $1 billion credit from the IMF, which
were contingent on economic reforms. In
April 2002, Nigeria pulled out of this program
after failing to meet the spending and
exchange rate targets which made it ineligible
for additional debt restructuring deals from
Paris club. In Nov 2005, Abuja won Paris Club
approval for a debt-relief deal that eliminated
$18 billion of debt in exchange for $12 billion
in payments.
Since 2008, the government began to show
the political will to implement the marketoriented reforms urged by the IMF, such as
modernizing the banking system, removing
subsidies, and resolving regional disputes
over the distribution of earnings from the oil
industry. As a result of the reforms, the GDP
rose strongly in 2007-12 because of growth
in non-oil sectors and robust global crude oil
prices. President Jonathan has established an
economic team that includes experienced and
reputable members and has announced plans
to increase transparency, diversify economic
growth, and improve fiscal management.

P a g e | 33

Lack of infrastructure and also casual and
slow implementation of reforms are key
impediments to growth. The government has
been working towards addressing these
issues by developing stronger public-private
partnerships for roads, agriculture, and
power.
Nigeria's financial sector was hurt by the
global financial and economic crises, but the
Central Bank governor has taken measures to
restructure and strengthen the sector which
includes imposing mandatory higher
minimum capital requirements.
From 2003 to 2007, Nigeria attempted to
implement an economic reform program
called the National Economic Empowerment
Development Strategy (NEEDS). The purpose
of the NEEDS was to raise the
country's standard of living through a variety
of reforms, including macroeconomic
stability, deregulation, liberalization, privatiz
ation, globalization and also several measures
regarding issues like transparency, and
accountability.
NEEDS addressed basic deficiencies, such as
the lack of freshwater for household use and
irrigation, unreliable power supplies,
decaying infrastructure, impediments to
private enterprise, and corruption.
The government hoped that the NEEDS
would create 7 million new jobs, diversify the
economy, boost non-energy exports, increase
industrial capacity utilization, and improve
agricultural productivity. A related initiative
on the state level is the State Economic
Empowerment Development Strategy
(SEEDS).


Gross Domestic Product (PPP)
Gross Domestic Product (GDP) is the value
of all final goods and services produced
within a nation in a given year. A nation's GDP
at purchasing power parity (PPP) exchange
rates is the sum value of all goods and
services produced in the country valued at
prices prevailing in the United States in terms
of Dollar Currency.
Nigeria is a middle income, mixed economy
and emerging market, with expanding
financial, service, communications, and
technology and entertainment sectors. It is
ranked 30th in the world in terms of GDP
(PPP) as of 2013, and the 2nd largest
economy in Africa (behind South Africa) and
on track to become the richest country in
Africa in 2014 and is also on track to become
one of the 20 largest economies in the world
by 2020. Its re-emergent, though currently
underperforming, manufacturing sector is the
third-largest on the continent, and produces a

P a g e | 34

large proportion of goods and services for the
West African region.
Nigerian GDP at purchasing power parity
(PPP) has almost trebled from $170 billion in
2000 to $451 billion in 2012, although
estimates of the size of the informal sector
put the actual numbers closer to $630 billion.
Correspondingly, the GDP per capita doubled
from $1400 per person in 2000 to an
estimated $2,800 per person in 2012.
Nigeria's revenue from petroleum is about
$52.2 billion. This accounts about 11% of
official GDP figures. Therefore, though the
petroleum sector is important, it remains in
fact a small part of the country's overall
vibrant and diversified economy. In 2012, the
GDP was composed of the following sectors:
1.
2.
3.
4.

Agriculture: 40%;
Services: 30%;
Manufacturing: 15%;
Oil & Gas: 15%


Macro-Economic Trend
Macro-economic policies are framed by the
Government of Nigeria considering the
advices by the Central Bank of Nigeria. The
priorities are set by the Government and the
policies are framed accordingly. The trend of
macro-economic climate in Nigeria deals with
three important sectors of the economy. They
are (i) agriculture, (ii) services and (iii)
industries.

Agriculture:










Nigeria ranks 6th worldwide and 1st in
Africa in farm output.
Poor government policies and lacks
basic infrastructure facility towards
agriculture
Still, the sector accounts for 26.8% of
GDP and 2/3rd of the employment.
Import constraints limit the
availability of many agricultural and
food processing inputs for poultry
and other sectors.
Cocoa, rubber, processed foods are
exported
The sector suffers highly from
extremely low productivity
Agriculture has failed to keep pace
with the rapid population growth

Services:








Ranks 63rd in world in services output.
Low growth in this sector due to low
power generation.
The banking sector has witnessed a
significant growth over the last few
years
Rigid monetary policies to by the CBN
has made the functioning of banks
tough
The cost of doing business in Nigeria
is high and this has led to the slow



P a g e | 35

growth of private sector led economic
growth.
Even though there are signs of
improvement in the economy,
Nigeria’s high cost of doing business
includes setting up of essential
infrastructure, the threat of crime and
associated need for security counter
measures, the lack of effective due
process, and nontransparent
economic decision making, especially
in government contracting.

Industry:
 Ranks 44th in world 3rd in Africa in
factory output.
 In 2000, oil and gas exports accounted
for more than 98% of export earnings
 The economy continues to witness
massive growth of "informal sector"
economic activities, estimated by
some to be as high as 75% of the total
economy.
 The types of crude oil exported by
Nigeria are Bonny light oil, Forcados
crude oil, Qua Ibo crude oil and Brass
River crude oil.
 Poor corporate relations with
indigenous communities, vandalism
of oil infrastructure, severe ecological
damage, and personal security
problems throughout the Niger
Delta oil-producing region continue to
plague Nigeria's industrial sector.
 Nigerian high tariffs and non-tariff
barriers are gradually being reduced
 The stock of U.S. investment is nearly
$7 billion, mostly in the energy sector.


The Business Environment
For investors to invest in Nigeria, knowing
where the Nigerian economy stands in the
aggregate ranking on the ease of doing
business is useful. Also useful is to know how

P a g e | 36

it ranks relative to comparative economies
and relative to the regional average. The
economy’s rankings on the topics included in
the ease of doing business index provide
another perspective.

The business environment for the investors
is becoming more conducive over the years
due to high amount of reforms and presently
a new business can be started in 28 days
whereas, earlier it was taking 3 to 6 months.
Even though currently, the ranking is at 147th,
lot of reforms has been taking place so as to
attract the investors.
Getting essential services like electricity,
water, construction permits etc. were
bottlenecks earlier but due to extensive
reforms in this field, Nigeria has been
successful in attracting investors by
providing them essential utilities that is
important to run the business. But still, a lot
of reforms need to be done in regards to
providing a conducive atmosphere for the
investors.

Foreign Trade Zones & Foreign
Investments
The country offers investors abundant
natural resources, a low-cost labor pool, and
potentially the largest domestic market in
sub-Saharan Africa. Even though lot of
reforms are being taking place in terms of
reforms of building a conducive environment
for the investors, much of Nigeria’s market
potential remains unrealized because of a
long list of impediments to investment like
inadequate power supply, lack of
infrastructure, delays in the passage of
announced legislative reforms, an inefficient
property registration system, restrictive
trade policies, an inconsistent regulatory
environment, a slow and ineffective judicial
system etc.
Attracting foreign investments has been one
of the major objectives for the Government of
Nigeria and lot of reforms have been

P a g e | 37

undertaken including setting up of Foreign
Trade Zones which provides advantages with
respect to taxes and duties to encourage
exports which resulted in many foreign
companies setting up a manufacturing plant
to take this advantage.

Foreign Trade Zones/Free Trade Zones:
 The Government of Nigeria (GON)
established the Nigerian Export
Processing Zone Authority (NEPZA) in
1992 to attract export-oriented
investment.
 NEPZA allows duty-free import of all
equipment and raw materials into its
export processing zones. Up to 25
percent of production in an export
processing zone may be sold
domestically upon payment of applicable
duties.
 Investors in the zones are exempt from
foreign exchange regulations and taxes
and may freely repatriate capital.
 Oil and gas companies use the Onne FTZ
as a bonded warehouse for supplies and
equipment and for the export of liquefied
natural gas.
 The GON also encourages private sector
participation and partnership with state
and local governments under the FTZ
program, resulting in the establishment
of the Lekki FTZ (owned by Lagos state),
and the Olokola FTZ (owned by the
federal government), and several such
FTZs to encourage trade.
 Workers in FTZs may unionize, but may
not strike for an initial ten-year period.


Foreign Direct Investment:
Nigeria has made it into the top 20 global
destinations for FDI. Foreign Direct
Investment inflows have been growing
enormously over the course of the last
decade. Foreign Direct Investment inflows
have been growing enormously over the
course of the last decade. The Oil & Gas sector
receives 75% of China’s FDI in Nigeria. Other
major sources of FDI include Italy, Brazil, the
Netherlands, France and South Africa.

Some of the highlights of FDI in Nigeria:
 The foreign direct investment (FDI) in
Nigeria in 2012 reached $7.2 billion.
 Total FDI inflow amounted to $8.9
billion in 2011, mostly in the oil and gas
industry, and representing about 55
percent of total FDI in West Africa and
21 percent of total FDI in Africa.
 This figure places Nigeria as the largest
recipient of FDI in Africa.
 Some of the inflows from FDIs reaches
telecommunications, real estate
(including commercial and residential),
and manufacturing, but total
investment in the non-oil and gas sector
remains small relative to investment in
the oil and gas sector.

Investment Framework and Bodies:
 In 1995, the Nigerian Investment
Promotion Commission Act was
instrumental in setting up framework for
Nigeria’s investment policy.
 100% investment is allowed in all
industries except for oil & gas, where
investment is constrained to existing
Joint venture or a new productionsharing agreement.

P a g e | 38

 Investment from both Nigerian and
foreign investors is prohibited in a few
industries crucial to national security
like the production of arms and
ammunition, and military uniforms.

Prospects for Future Investment:
 Nigeria has a range of resources and
industries ready for development and
global interest in the economy is rising.
 Outside of petroleum, the country has
largely untapped mineral resources
including coal, iron ore, lead, tin and
zinc, and the country’s expanses of
arable land make agriculture and agro
processing viable and attractive.
 Nigeria's telecom industry is flourishing
and certain areas of manufacturing, like
cement and beverages, are increasingly
drawing in investors.
 Between 2001 and the end of 2009, the
telecom sector received USD18 billion in
FDI, on the back of a liberalized regime
that has made Nigeria Africa’s biggest
mobile market.
Towards developing the FDI inflows, the
GON has come up with a program called The
One Stop Investment Centre (OSIC) which is
an investment facilitation mechanism where
relevant Agencies of Government are brought
to one location (Single window clearance
system), co-ordinated and streamlined, to
provide efficient and transparent services to
investors. The services at the center include:
 Simplified administrative procedures for
the issuance of Business approvals,
Permits/ Licenses
 Company incorporation
 Provision of investment information;
statistical data and information on the

Nigerian economy, Investment Climate,
Legal and Regulatory Framework as well
as Sector and Industry specific
information to aid existing and
prospective investors in making
informed business decisions.

Foreign Economic Relations
Nigeria's foreign economic relations
revolve around its role in supplying the world
economy with oil and natural gas, even as the
country seeks to diversify its exports,
harmonize tariffs in line with a
potential customs union sought by
the Economic Community of West African
States(ECOWAS), and encourage inflows of
foreign portfolio and direct investment. In
October 2005, Nigeria implemented the
ECOWAS common external tariff, which
reduced the number of tariff bands. Prior to
this revision, tariffs constituted Nigeria's
second largest source of revenue after oil
exports.

P a g e | 39

 The CBN has since engaged in several
rounds of policy tightening, maintaining
core inflation levels in the 11-12 percent
range, despite the impact of electricity
price hikes, an almost 50% increase in
gasoline prices, significantly higher
global food prices, and flood-related
domestic food price pressures.
 Foreign exchange reserves stood at $44
billion in December 2012.
 The CBN has taken a highly expansive
view of its role in Nigeria’s economic
development, using its balance sheet to
support investment in the power sector,
small and medium enterprise (SME)
loans, and commercial agriculture.
 Management of GON fiscal policy has
remained a persistent challenge due to
Nigeria’s heavy reliance on oil revenue
and its history of pro-cyclical spending
and civil service hiring during periods of
high global crude oil prices.

Inflation
Banking
 Central Bank of Nigeria (CBN) monetary
and exchange rate policies have come
more closely into alignment in 2012.
 The IMF criticized the CBN in 2011 for
maintaining artificially-low interest rates
and intervening heavily in the foreign
exchange market to prevent devaluation
of the Naira.
 In early 2011, real interest rates
remained negative, inflation hovered at
12 percent, and CBN reserves had fallen
from $62 billion in 2008 to $33 billion.

Inflation Rate in Nigeria is reported by the
National Bureau of Statistics, Nigeria.
Inflation Rate in Nigeria averaged 10.43
Percent from 2006 until 2013, reaching an
all-time high of 15.60 Percent in February of
2010 and a record low of 3 Percent in July of
2006.
In Nigeria, the Consumer Price Index (CPI)
measures the change over time in prices of
740 goods and services consumed by people
for day-to-day living. The index weights are
based on expenditures of both urban and
rural households in the 36 states.


Trade & Current Account
Nigeria recorded a Current Account surplus
of 10.80% of the country's Gross Domestic
Product in 2012 as reported in the annual
report of the Nigeria Budget Office.
From 1980 until 2012, Nigeria Current
Account to GDP averaged 1.5 Percent
reaching an all-time high of 37.9 Percent in
December of 2008 and a record low of -18.7
Percent in December of 1986.
The Current account balance as a percent of

P a g e | 40

GDP provides an indication on the level of
international competitiveness of a country.
Usually, countries recording a strong current
account surplus have an economy heavily
dependent on exports revenues, with high
savings ratings but weak domestic demand.

Corporate Nigeria

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