NIGERIA - PRESENTATION

Presented by Vitalis

CCM 401 – Dr. Kenn Kassman

NIGERIAHISTORYECONOM

ICSCULTURE

AND BUSINES

S

Presentation Agenda

Background

History of Nigeria

Economic System

Nigeria Culture

Business Practices

Do’s & Don’ts

CCM 401 Dr. Kenn Kassman Vitalis 1

BACKGROUND

2CCM 401 Dr. Kenn Kassman Vitalis

VitalisCCM 401 Dr. Kenn Kassman

3

West

Africa

The Map of Africa


4

The Map of Nigeria


• Nigeria is located in the gulf of Guinea in West Africa

• The total population of Nigeria is approx. 173.6 million

• Nigeria occupies 923, 768 km2 ( 3% of Africa's landscape)

• Nigeria is considered the 7th largest nation in the world

• The nation is divided into Christian South and Muslim North

• The three major tribes in Nigeria are Hausa, Yoruba, and Igbo

• The official written and spoken language is English

• Nigeria became an independent nation on October 1, 1960

Basic Facts About Nigeria

5

Facts About Nigeria Cont…


• The Federal Capital Territory (FCT) of Nigeria is called Abuja

• Nigeria is Africa largest economy with a GDP of $568.51 billion

• It is regarded as the largest oil producing nation in Africa

• The basic unit of money used in Nigeria is known as Naira (₦)

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Language Spoken


7

HISTORY


The Colonial Masters & Civil War


• 1914 - British High

Commissioner Fredrick

Lugard united the North and

South

• 1922 - German colony

Kamerun joined Nigeria

under League of Nations

mandate

• 1967 - Three states in the

east part broke out of

Nigeria to form a new

Republic called Biafra,

sparking a bloody civil war

• 1970 - Biafran leaders

surrender - Biafran regions

reintegrated into Nigeria

9

The Coup Regimes


• 1966 January - Balewa killed

in coup

• 1966 July - Ironsi killed in

counter-coup

• 1975 - Gowon overthrown

in bloody coup

• 1976 - Mohammed

assassination failed

• 1983 December - Major-

General Muhammad Buhari

seizes power in bloodless

coup

• 1985 - Ibrahim Babangida

seizes power in bloody coup

• 1993 November - General

Sani Abacha seizes power

10

Xenophobia, Debts, & Boko Haram


• 1983 January - More than

one million foreigners expel

- mostly Ghanaians

• 2005 July - Paris Club write

off two-thirds of Nigeria's

$30bn foreign debt

• 2004 January - UN resolve

border disputed between

Nigeria and Cameroon

• 2014 April - Boko Haram

kidnaps more than 200 girls

from a boarding school

“Bring Back Our Girls”

11

Bring Back Our Girls


12

ECONOMICS


Nigeria Climate


• There are only two seasons – the wet and the dry season

• It is characterized by high humidity and strong rainfall

• The wet season lasts from April to September while the dry or

harmattan season lasts from October to March

14

The Social Dynamics


• 80% of Nigeria oil revenue benefits less than 1% of the country

• About 46.2% of the total population lived in the Urban area

• Over 60% of the Nigeria population lived by farming

• 50% of the Nigeria population live below $1 per day

• 54.4% of the total population live below the poverty line

• The country is ranked 158th on the Human Poverty Index

• Nigeria unemployment rate hovers around 19.7% on average

15

Demographics


• Nigeria has a literacy rate of about 72% for the total population

• The female literacy rate is estimated to be around 50.4%

• Nigeria life expectancy for male is 52.6 and female 53.8

• 46% of the population is under 15yrs and 65% below 25yrs

• The Nigeria population is estimated to be 203 million in 2025 and

279 million in 2050

• Infant and mortality rates are 69 and 128 per 1,000 live births

16

Nigeria GDP & Inflation Rate


• Nigeria inflation rate stood at 9.20% in July of 2015• The Gross Domestic Product fell to 2.35% in 2015

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2.35% 9.20%

Capital Market & Currencies


• The central Bank of Nigeria (CBN) was established in 1958• The total assets of the Central Bank of Nigeria is ₦8.8 trillion

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Sources of Finance


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70%1%

25%4%

Sources of Finance for Formal Business in Nigeria (in % Distribution)

Retain Earnings Bank & Financial Institute Suppliers CreditBorrow froom Family/friends

Source: World Bank report on Nigeria in Minister of Finance’s Presentation at EMT on February 2011

Business Constraints


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Tax administration

Customs and trade regulations

Access to land

Practices of the informal sector

Political instability

Transportation

Tax rates

Corruption

Electricity

Access to finance

0 5 10 15 20 25 30 35

Top 10 Business Environment Constraints

Firms

Sources: http://www.enterprisesurveys.org/data/exploreeconomies/2014/nigeria

CULTURE


Hofstede Model


22

POWER DISTANCE

Low vs. High

Individualismvs.

CollectivismUncertainty Avoidance

Low vs. High

Masculinityvs.

Femininity

Religions


• 50% of Nigeria population is Muslim while 40% is Christian and the other 10% has indigenous beliefs such as deities or animists

Mosque

Church

Shrine

23

Mealtime & Foods


• Breakfast is served from 6 to 9 A.M., lunch from 12 to 2 P.M., and dinner from 8 to 10 P.M.

• Nigeria diet is rich in rice, yam, plantains, cassava, and vegetables

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BUSINESS PRACTICES


Punctuality & Appointments


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• Punctuality is valued but, not a traditional virtue in Nigeria

• Lateness or a cancellation is not an affront – client may be late

• The best times to schedule business trips is October to March

• Lagos is the 4th dense city in the world and has one of the worst

traffic jams – so, plan your travel ahead of time

Negotiating & Bargaining


27

• Bargaining is the natural way of buying and selling in Nigeria

• When you make a purchase haggle for a price that is half of what

the seller proposed vice versa

• The work week has generally run from 8:00 A.M. to 4:00 P.M.,

Monday through Friday – it depends also on the industry

• The word “no” is considered harsh in Nigeria – indirect refusals

are more common and polite (For example, I will try my best)

Local Time


28

• In Nigeria, the day is written first, then the month, then the year

(e.g. December 3, 2010, is written 3.12.10 or 3/12/10)

• Nigeria is one hour ahead of Greenwich Mean Time (G.M.T. +1),

or six hours ahead of U.S. Eastern Standard Time (E.S.T. +6)

• Be cognizant because Nigeria does not use daylight-saving time

DO’S AND DON’TS


Negotiating


30

• DON’ T rush business talk even though Nigerians like to get

business done right away

• DON’T be offended when your suggestions are turn down

• DON’T try to get decisions out from middle managers

• DON’T disagree with other team mates in front of Nigerians or

appear uncertain, unsure, or not authorize to make decision

Forms Of Address


31

• DON’T write people surname before their first name – for

example, (Nujimem Vitalis) should be (Vitalis Nujimem)

• DON'T try to address all Nigerians in the same way because

Nigeria is a diverse nation with different ethnic groups

• DON’T look those who are senior to you or in authority higher

than you in their eyes when they speak – it is a disrespect

• DON’T hand out a dirty, bent, or written-on business card

Forms Of Address Cont….


32

• Try to address Nigerians using their titles because this shows

respect to the status of the person (Chief. Engr. Dr. Dangote )

• Try to ask co-workers or business partner about their

background in order not to offend anybody by accident

• Speaking Pidgin English is a plus if you want to invest in Nigeria –

it is the version most used as a way to bridge the language gap

Greetings


33

• Greeting process are very important in Nigeria – so try to greet

each person in a group individually in order of seniority

• Try as much as possible to greet first – taking greetings from an

elderly person or your boss is consider a taboo, curse, or swear

• It is also appropriate to bow your head when shaking the hand

of someone much obviously older than you

Entertaining


34

• DON’T toast those who are older or more senior than you

• DON’T discuss controversial topics such as politics or religion

• DON'T criticize your colleagues in public – if possible have a one-

on-one chat or conversation with him or her

• DON'T use your left hand when handling business card or things

to people – except you are naturally born left-handed• You can invite a business associate or colleague out even if you

do not know him or her fairly well

Meetings


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• Remember to shake hands with everyone when you enter a meeting room and before you leave the meeting room

• DON’T rush – it is extremely rude; spend time to ask about the person’s health or the health of their family members

• Avoid hyperbole or exaggerated claims when presenting a business case – Nigerians are naturally suspicious of good deals

Gifts


36

• DON’T give gift as it is not part of doing business in Nigeria –

others might see it as a form of bribery

• DON’T use black or red paper to wrap gifts for Nigerians

• Gifts should symbolically signal the nature of the relationship

• When receiving a gift use either both hands or your right hand

Dress


37

• Dress smart when you go to Nigeria because your relative

importance may largely be judged by your appearance

• DON’T wear dresses that look like a military uniform

• Clothes should not be tight-fitting or revealing your body

• Avoid wearing expensive clothes or jewelry on the street

Gestures


38

• Use indirect language to avoid conflict and confrontation as

Nigeria is a Relationship-Focus and High-Context society

• DON’T use gestures until you are sure they are understood

• DON’T use the “Thumbs-Up” sign mainly used in the U.S. as

everything is all right, it can be very offensive in Nigeria

• DON’T push you hand forward with finger spread apart

“Know Before You Go”

Thank YouFor

Your Time

Bibliography• Agbamu, Kenoma. “Culture & Doing Business in Nigeria, an insight into tips, does, and

don'ts.“ Web. 27 Aug. 2015• Aregbeshola, R. Adewale. "The Political, Economic, and Social Dynamics of Nigeria: A

Synopsis." Feb 2011. Web. 28 Aug. 2015• Duruiheoma, Eze . “Nigeria: Demographic and Health Survey (NDHS) 2013." June 2014. Web.

29 Aug. 2015• Foster, Dean. “The Global Etiquette Guide to Africa and the Middle East: Everything You

Need to Know for Business and Travel Success.“ 2002. Web. 27 Aug. 2015• Morrison, Terri; Conaway. A. Wayne. “Kiss, Bow, Or Shake Hands.“ 2nd ed. 1995, 2006 Imprint.

26 Aug. 2015• Ogbonna, Chidiebere. "Cultural Issues About Doing Business In Nigeria: Case Study For

Thurmo Oy." May 2010. Web. 29 Aug. 2015.• Palk, Susannah. “When yes means maybe: Doing business in Nigeria.“ Aug 31, 2010. Web. 28

Aug. 2015• Sanusi, R. A Alhaji. "National Bureau of Statistics: The Federal Republic of Nigeria Annual

Abstract of Statistics 2010." December 2010. Web. 29 Aug. 2015• Shu'ara, Jamila. "Higher Education Statistics Nigeria Experience in Data Collection." October

2010. Web. 26 Aug. 2015CCM 401 Dr. Kenn Kassman Vitalis

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NIGERIA - PRESENTATION