Moving To Nigeria To Start A Business

Hi Guys, I live in the USA now and am planning to relocate to Nig later this year. I am not Nigerian, I have friends out there who are. However I have spent about 3 to 4 months visiting there in 2004, I loved it a lot, people there are inspring and hardworking. I know there are others who focus more on the negative.

I want to open a Toiletery and laundry supplies manufacturing business and I also want to do houseware stuff like beddings, dishes etc, all of these to sell wholesale to the local market.

What do you guys advise. thx

I suggest a fact finding visit  first

Setting up a business in Nigeria is not an easy task. It is fraught with obstacles and bureaucracy
There is also corruption you have to deal with which pervades every facet of life

Bribes are required for almost everything legitimate or not
You will find that doing something as mundane as getting from A to B is not as easy as you may be accustomed to, police check points, fuel scarcity, lack of good roads etc

You should go and investigate things like location, required machinery, power supply, labour, running costs etc just to give you a quick run through but i am sure you would have thought of most of these things anyway

The list if things you need to do is endless, but always remember to watch your back and trust no one as you would anywhere in the world that is new to you not just Nigeria

Its always a good idea to touch base with the local chamber of commerce for potential contacts and advise regarding bureaucracy

But then Nigeria is a very progressive country and there are lots of people making a difference

Do your homework

Nigeria has a lot of potentials for business. With a population of over 150million people, it is the largest market in africa. Oppourtunities for profir are enormous, as regulating agencies and tax authorities are very lenient (except when they need a bribe from you!), however, the challenges involved are substantial. You have to generate your own power (electricity) as the public supply is practically non-existent, provide your own water supply (and still pay for having your own source of water because they government could not provide it), practically construct access roads to your factory, etc
Lest I forget, you must have your own police/army (prefarably OPC) to guarantee your security!

The challenges like the return on investment is enormous, so before you venture there, it will be a very good idea to go and live there for 3 to6 months to study the lay of the land. If you can survive it, you'll definitley be smiling to the bank (ask MTN Nigeria!)

2.it is quite teribble and horribly dismaying that it  is nigerians that are discouraging someone that intends to invest in d very country that even nigerians will not invest the very wealth dta they stole from the country. i mean: wot does this say about us? nigerians are thiefs? u tell them to beware before u tell them how great the country is? its absolutely terrible that nobody believes in the possibilty that there still are honest nigerians,

well whatever u guys think, it remains a fact that nigerians are great people
every prospecting investor has to do his homework just like in every other part of the world.

Thank you to all of you guys, all of you are very insightful.
In term of Security like armed police or military men, what is that going to cost one to secure a company and I am thinking where I will live as well?

I had friends living in Lekki and Ikoyi and the Island. Those areas seemed ok, no complaints. I am Liberian/American but I am not completely americanized I can understand the lack of electricity and water. I come to Africa every now and then.

I liked Nig when I visited in 2004. I am tired with being here and need to become my own boss now. I am concerned with the bribery for I am a girl and my boyfriend is so busy, I hope he can refer trusted folks to guide me. I intend to be so involved with everything for this is the biggest sacrifice I would have made and leaving my comfort zone.

Thank Debosky, I will save the info on the Sec company. I am excited about this move. It is so expensive/hard to start a business here. I can give back to my own people at the same time out there. I hear rent is so high, but in terms of security is it best to do apartment/flats or bungalows i am not sure which ones that is? If I wanted to live alone.

Thx Debosky, I have this website that quotes prices, www.ip4properties.com. Realistically, what will a serviced flat cost annually? I am so sorry for the questions but this is part of my convincing research.

Thanks for all of the pieces of advice it is highly appreciated guys

Good move Pepsi2.Business is good in nigeria.I returned over a year ago and really I'm impressed.Since you are Liberian American, if u can keep your accent down a little bit, u wouldn't need the constant security.However you might need them at your facility.Mobile police in the Niger delta cost us about 700 dollars per month for two.I guess Lagos would be cheaper.
As per serviced flats, those things are way too expensive.Some charge as much as 100 usd per night, others charge more.That's almost as expensive as manhattan or london. I'd reccommed u stay in serviced flats for a month then get a personalized place for the long term.
Don't forget that in manufacturing in Nigeria, electricity is the biggest problem.
Best of luck.

You also need to need to carry out a feasibility study on your venture. I think that you have  to compare cost of production in Nigerian with Chinese imported toiletry products.

Adcoline thx, I was wondering about the Ban on toilerteries and Luandry products. I thought of inporting them compare to manufacturing but feared the Ban and the bribery to still inport such products. What do you think?

Thx SOJ, I will be looking for the infor on Firms. I was thinking about a consultant firm for good info as well.

You guys are truly helpful on here. Thx

i think she has answered these Q. b4 making a post,my guy.dats y she's here 4 advice and u sure are giving it!
ok Pepsi2,u r welcome.

Thx SOJ AND DANIEL. I am trying to tighten all loose ends and you guys are rite that is why I am on here to get answers since I have been reading your posting for a while and figure you were insightful.

I am sure the Asians have a lot of influence in the market in so many ways and leaves just a little options to run with. I want to create a toiletery line of soap, cream/lotions medicated to cater to things like insects bites especially for the skin itches/rashes that spreads among kids in unfortunate neighborhoods, this is common to lots of third world countries. And products with suncreen for our weather type and baby produts and then washing soap and detergents for clothes and dishes and other cleaning purposes.

Pepsi2,
I fancy your plan in the line of production you have chosen.
I will advice that you add perfume - fragrance to it. At least its cheper to produce here.

Your idea of localizing the products is just right.You Know, one of the most successful soap brands in Nigeria is Dudu Osun.Its the very local black soap that our forefathers used and yet the owners were able to make it into a premuim brand.Lux and Joy(most common brands) sell for about 30 naira while dudu osun sells for something like 80-100 naira.
So really I don't see the Asian brands as a major obstacle especially if you make your brand premuim.
Fact is - use of cosmetics is  a class thing and most of those asian brands are competing for the lowest end of the market.
On the thought of producing 4 the poor children,  forget it.These kids don't care much about toiletries.Focus on the emerging middle class.It is huge.
The perfume, nah, nah, nah!Ah ah, perfume is a signature statement.That is a whole different game entirely.Leave that one to the celebrities.

Well you got a good idea, but i would advice you to carry a research/feasibilty study to help you make some good decisions. I can help you in the area of research, I work with one of the best or I'd say the best research firm in the world, ACNIELSEN but now NIELSEN. Contact me if you want more info, CIAO

Thx Kelly and Mansa. Kelly are you in Nigeria, is there as website?