This presentation gives an introduction on doing business in Nigeria by assessing its attractiveness for entry strategy for fashion and luxury companies.

1. DOING BUSINESS
IN NIGERIA
MAFED 2016 CLASS PRESENTATION
BY ADEOLA FALODUN

2. AGENDA
1. Country Overview
1.1 Key Facts
1.2 The Business Environment
1.3 Foreign Direct Investment
2. The Nigerian Fashion Industry
2.1 Industry Definition
2.2 Key Local Players
2.3 International Players
2.4 Customer Profile
2.5 Distribution
2.6 Fashion Shows
2.7 Media
2.8 Production & Sourcing
2.9 Retail Environment
2.10 Summary
3. Key Success Factors

3. 1.0
COUNTRY OVERVIEW

4. NIGERIA
THE GIANT OF AFRICA
POPULATION: DEMOGRAPHICS:
ECONOMY:
24th
Largest Economy in the World
1st
Largest Economy in Africa
CURRENCY:
Naira (NGN)
181.56 Million
URBAN:
49.6%
LITERATE:
61.3%
43.8% 53.2% 3%
0-14Yrs 15-64Yrs 65Yrs+
RELIGION:
50% 40% 10%
Muslims Christians Others
ECONOMIC CENTRE:
Lagos
MAJOR CITIIES:
Lagos 13.12 Million
Kano 3.59 Million
Ibadan 3.16 Million
Abuja 2.44 Million
P.Harcourt 2.43 Million
Benin 1.49 Million
(2015 est.)
Capital is Abuja
36
STATES
+
FCT
NATURAL RESOURCES:
Natural Gas
Tin
Iron Ore
Coal
Limestone
Niobium
Lead
Zinc
Ruby
Bitumen
Gold
Marble
Gypsium
Clay
Kaolin
Sappire
Cotton
Arable Land
OIL & GAS
=
35% GDP
LANGUAGE: ETHNIC GROUPS:
250 +English …
500 +
OFFICIAL:

5. 1.1 KEY FACTS ON NIGERIA
• Located on the coast of West Africa
• A democratic country with 36 states and a federal capital territory with a land mass of
923,786 sq.km
• The capital is Abuja while the economic centre is Lagos
• Total population of 181.56 million people (2015) making it the most populous country in
Africa and the 7th most populous country in the world
• Nigeria’s internet penetration of 51.1% (2016) is 28% of total Africa internet users
(http://www.internetworldstats.com/stats1.htm )
• Nigeria’s film industry, Nollywood, is the 2nd largest film industry after India, in terms of
films produced annually
• Nigeria textile market is the 3rd largest market in Africa

6. 1.2 THE BUSINESS ENVIRONMENT
OPPORTUNITIES THREATS
• Large and vast population
• Untapped natural resources
• Favourable demographics expected to spur
demand for goods
• Growing middle class
• Rapid urbanisation growing at 4% p.a.
• Rising household consumption expenditure
($438 billion by 2017)
• Young, educated, entrepreneurial population
• Nigerian diaspora investing back home
• Security issues in the North and South of the
country
• Unsure political stability
• Failing oil price
• Poor infrastructure which can result to higher
operating expenses (energy and transport)
• Difficult regulatory processes and undue
influence

7. 1.3 FOREIGN DIRECT INVESTMENT
• Nigeria is one of the top 3 recipients of FDI in Africa
• FDI attractiveness is due to the large market size and the natural resources present
• The oil and gas sector is the most preferred and biggest beneficiary of FDI
• FDI inflows grew in the past years reaching an all time peak of $3,084.90m in the forth
quarter of 2012.
• In 2015, there was a decline in FDI inflows due to election, change in government and
unstable macroeconomics factors thereby relying on local investors
• In the first quarter of 2016, FDI in Nigeria increased by $887.32m
• From 2007 to 2016, FDI has averaged $1,366.45m
• Considering the high risk of investment, the Nigerian government offers generous
incentives such as tax incentives in order to attract FDI inflows

8. 2.0
THE NIGERIAN
FASHION INDUSTRY

9. 2.1 INDUSTRY DEFINITION
Increasing
Middleclass & New
Rich Consumers
Highly
Fragmented
Rich in
Creative
Talents
KEY DRIVERS
• World Renowned Nigerian Fabrics
• Fashion Shows
• Prints and Online Media
Huge Impact on
Fashion Trends

10. 2.2 KEY LOCAL PLAYERS
STYLE
PRICE
PREMIUM
HAUTE COUTURELUXURY CHIC
SATORIAL CLASSIC
COSMO/AFROPOLITAN

11. 2.3 INTERNATIONAL PLAYERS
EXCLUSIVE LUXURY
UPPER BRIDGE
PREMIUM
FAST FASHION
RETAILER
PRICE/QUALITY

12. 2.4 CUSTOMER PROFILE
MODERN
SOCIAL/STATUS
CONSCIOUS
STYLISH CONFIDENT
WANTS TO STAND OUT
FUN
OUTGOING
FASHION ORIENTED
LOVE FOR PRINTS &
COLOURS
ENTHUSIASTIC
BRAND FOCUSED

13. 2.5 DISTRIBUTION
OFFLINE RETAILERS
ONLINE RETAILERS
http://www.alaralagos.com/about/
https://www.jumia.com.ng/

14. 2.6 FASHION SHOWS
AFRICA FASHION
SHOW NIGERIA
(AFWN)
LAGOS FASHION
AND DESIGN WEEK
(LFDW)
ABUJA FASHION
WEEK (AFW)
PORTHARCOURT
INTERNATIONAL
FASHION WEEK
(PIFW)

15. 2.7 MEDIA
PRINTS ONLINE
SOCIAL PLATFORMS

16. 2.8 PRODUCTION & SOURCING
LEATHER GEMSTONES
TECHNOLOGYTEXTILE

17. 2.9 RETAIL ENVIRONMENT
LOCAL MARKETS SHOPPING MALLS
STAND-ALONE BOUTIQUES ONLINE STORES

18. 2.10 SUMMARY
SIZE
GROWTH RATE
DEMOGRAPHICS
URBANIZATION
INFRASTRUCTURETAXATION
HUMAN CAPITAL
LOCAL COMPETITION
BRAND CONCEPT
QUALIFIED RETAIL SPACE
LOCAL SUPPLY CHAIN
HIGH MEDIUM LOW
SOURCING

19. 3.0 KEY SUCCESS FACTORS
LOCAL PARTNERSHIP/
FRANCHISING
QUALITY SERVICE
CORPORATE SOCIAL
RESPONSIBILITY
STRONG MEDIA &
CELEBRITY INFLUENCE
1 3
2 4

20. DEOLA SAGOE

21. MAKI OH

22. IAMISIGO

23. KINABUTI

24. LISA FOLAWIYO

25. LANRE DASILVA AJAYI

26. THANK YOU !!!

27. REFERENCES
• http://www.internetworldstats.com/stats1.htm
• https://www.pwc.de/de/internationale-maerkte/assets/doing-business-in-nigeria-
2015.pdf
• http://www.worldfinance.com/strategy/detail-nigerias-oil-and-gas-sector-attracts-fdi
• http://www.ey.com/Publication/vwLUAssets/EY-Nigeria-Country-Report/$FILE/EY-Nigeria-
Country-Report.pdf
• http://www.tradingeconomics.com/nigeria/foreign-direct-investment
• http://www.worldometers.info/world-population/nigeria-population/
• http://www.helafrican-chamber.gr/articlefiles/agl%20nigeria%202015%20.pdf
• http://www.opec.org/opec_web/en/about_us/167.htm
• http://www.doingbusiness.org/Reports/Subnational-
Reports/~/media/giawb/doing%20business/documents/profiles/country/NGA.pdf
• http://www.nipc.gov.ng/index.php/opportunities-by-sectors/textile-and-apparels.html
• https://www.notjustalabel.com/editorial/sleeping-giant-nigerias-flourishing-fashion-
industry
• Olokoyo, (2012); Foreign Direct Investment And Economic Growth: A Case Of Nigeria