Pest Analysis of Nigeria

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  • Topic: Politics of Nigeria, President of Nigeria, Economics
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  • Published : May 15, 2012
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SWOT Analysis of the Nigerian Business Environment

SWOT Analysis of the Nigerian Business Environment

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SWOT Analysis of the Nigerian Business Environment 1

Contents Business Environment of Nigeria ……………………………………………………...4 SWOT Analysis ………………………………………………………………………..5 Conclusion ……………………………………………………………………………16 References ……………………………………………………………………………17

SWOT Analysis of the Nigerian Business Environment 2

SWOT Analysis of Nigerian Business Environment Every country has its own business environment, just as every organization has its own set culture and business surroundings. While undertaking a business locally or abroad, the managers or CEOs of the organizations have to account for and consider all the external and internal as well as macro and microeconomic factors, which are likely to contribute to the success or failure of the business. Managing a business in the home country seems to be easier than going global; however, there are certain factors responsible for improving or hampering the competitiveness of the business operations, both at home and abroad. These factors are sometimes controllable but mostly the factors like inflation, unemployment, and those which take place due to the boom-and-bust of economic conditions are uncontrollable. The developing or the Third World countries mostly have to keep these external and internal factors of doing business in focus, as it may harm their economic condition or spoil their goodwill. For the purpose of identifying such underlying factors, many tools like SWOT and PEST analyses are used. They evaluate the hidden forces and enable the country or organization to judge their vulnerability of success or failures against those factors. This essay would outline and briefly discuss such forces or factors which are to be considered while doing a business locally and globally.

Business Environment of Nigeria Nigeria is a country located in West Africa and has thirty six states. It is the eighth most populous country in the world and stands as the most populous country in Africa. As far as the economy and business of Nigeria is concerned, the country has a fastest growing economy and is an attractive business location. Nigeria has been one of the most prominent members of the

SWOT Analysis of the Nigerian Business Environment 3

Commonwealth Nations and is listed among the other countries considered the “Next Eleven” economies. The concept of “Next Eleven” or N-11 countries refers to the list of those eleven nations which possess a great potential and ability to become the world’s largest economies in 21st century. Nigeria is one of those countries which rely heavily on their natural resources, especially oil. Though corruption, political instability, poor management, and lack of infrastructure prevail throughout the country, it has been classified as a newly emerging market (CIA, 2010). Since the year 2007, the country has been experiencing a high GDP and the government has been trying constantly to curb the mismanagement and inflation as well as imposing new policies and reforms to improve the financial and services sector of the country. Despite this, the country provides an attractive place for investments in its different business sectors but the inadequacy of utilities and infrastructure prevents the entrepreneurs from setting up their businesses. Moreover, the existence of ethnic groups and diverse languages makes Nigeria a more complex country. Starting up a business from scratch either at the home country or in a foreign one is a very complex matter. There are many factors which need to be taken into consideration in order to account for the vulnerability of the business operations to many sensitive issues. For this purpose, the business and management gurus have devised tools and strategies to identify and analyze those factors which are vital for the success of the business and those which...
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