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Overcoming The Nigerian Factor In Your Business by leksmedia: 10:32am On Jun 06, 2016 |
One of the greatest challenges, and the popular causes of business failure in Nigeria is what has been termed the “Nigerian factor”. Though this might sound strange to foreigners, its almost impossible to run a successful business in Nigeria without the Nigerian factor setting in. The Nigerian factor doesn’t really have a specific definition. It can simply be put as sets of activities or practices that prevents you from running a successfully business in Nigeria. It is generally known that most businesses fail within the first one year of If you are doing business in Nigeria or live in Nigeria , you would have heard the word the “Nigerian factor” , the word in the real sense is synonymous to the bad factors that affects businesses in Nigeria. It’s almost difficult to explain it, as these as sets of activities that hinder the successful running of a business. Some of these factors might not make sense to a foreigner but an average Nigerian will be able to relate with these problems. Most of these problems are external factors that you can hardly prevent but on the other hand they can be well managed or put in factors to avoid them. So based on my experience , Here are the common Nigerian factor that you might face runing a business in Nigeria. 1. Corruption: You can hardly avoid this as corruption has eaten deep into every sector in Nigeria. From government officials to business practitioner, corruption is virtually everywhere from the man at the port, to the police officers on the road, down to the tax man. Solution Always run a legal business, make sure your business is registered, have the neccessary documents and always obey the rule of law. 2. Lack of power supply : This is another major challenge every businesses face in Nigeria. Lack of steady or constant electricity supply. Whether you are in the manufacturing or serviced based business, you can’t do without electricity. The fact that power is not constant and the high rate of electricity bills imposed by PHCN can send your business packing up. Solution Apply for a prepaid meter Have a backup generator Invest in renewable energy such as inverters and solar panels 3. Lack conducive Business environment : The Nigerian environment sometimes is not too business friendly due to some factors like bad roads, poor economic policies, unhealthy business laws etc Solution Create a working business environment and make sure your staffs / employees sticks with it Understand the Nigerian politics , monetary and economic policies 4. Non Availability of loan or High Interest loans : Getting loans from the Nigerian bank is not an easy task , when you finally get one, the interest rates are killing , apart from the interest rates, there are also several hidden charges that will be incurred during the course of the loan validity. Solution Source for loans from business relations, friends and micro finance 5. Unqualified and unskilled labour : Getting qualified people to work with you is another big task for entrepreneurs in Nigeria. There are lots unskilled or unqualified persons applying for jobs. Solution Take time during the recruitment process to employ the best hands Invest in training the staffs once they have been hired 6. High cost of Running business : The cost of running a business in Nigeria is relatively high. Solution: Avoid wastage Look for alternative or cheap sources to running your business 7. Unstable political system: Due to the unstable political system in Nigeria, policies are bound to change which may affect businesses. Solution: Don’t get involved in the Nigerian politics as a business, be politically neutral Understand the Nigerian politics and adjust accordingly 8. Fuel scarcity : One of the most important resources needed in every business is fuel, but due to several reasons, there is practically no year that Nigerians are not faced with this business threatening problems. Solution: Invest in renewable energy such as solar and wind enerygy Always have backup fuels for emergencies 9. Too many levies and tax : There are so many levies placed on business owners by the Federal, State and the Local Government. Solution have an idea of the tax or levies that applies to your business seek tax rebate and also look for legal avenues to reduce taxes or levies imposed by the Government 10. Professional Advice: Most businesses operate without professional guidance, which often lead them to disobey the law or flaunt laid down rule. Solution: Employ services of professionals to help manage your account, taxes, levies, registrations etc How to overcome the Nigerian factors Overcoming the Nigerian factor has to do with lots of determination, hard work, persistence and a go getter attitude. 1. Have a mission 2. Never give in to corruption 3. Have a backup plan 4. Always do the right thing 5. Don’t break the rule 6. Ensure transparency in all your dealings 7. Avoid wastage /leakages 8. Look for cheaper ways in doing things 9. Never run an illegal business , make sure you register with the right authorities 10. Pay up levies , taxes and government contributions on time 11. Treat your staff well The Nigerian factor Source: Business Mopol 22 Likes 5 Shares |
Re: Overcoming The Nigerian Factor In Your Business by overhypedsteve(m): 1:13pm On Jun 06, 2016 |
Which Business una wan do for Nigeria again? Abi you nor read about Buhari's intention to sign the EPA agreement with him European friends that will kill Nigerian made businesses? Source: http://www.mylastkobo.com/2016/06/why-nigeria-must-not-consider-signing.html?m=1 |
Re: Overcoming The Nigerian Factor In Your Business by saintTim(m): 1:13pm On Jun 06, 2016 |
Nna ehhh bros above WHY U PUSH ME ? Watin I do u way u PUSH ME ?? 1 Like |
Re: Overcoming The Nigerian Factor In Your Business by chimah3(m): 1:13pm On Jun 06, 2016 |
Running a business is one of the most adventurous things you can embark on this earth!! It's CRAZY!!! Poor power supply can run you mad...now fuel is 145/L Not to talk of the greedy, incompetent staff that will work for you, and don't care if they run you down after 6 months!! Then the economy going crazy every day...thanks to APC, importers can't even import; Restaurants spend millions cooking just jellof rice, and market women have to go on ultimate search looking for items to purchase!! Then when you add chinkili extra 100 naira on any item you sell...all your customers will disappear like PMB leaving Nigeria!! All in all...It's a beautiful experience! God dey! We must always find a way to survive!! 10 Likes |
Re: Overcoming The Nigerian Factor In Your Business by Joettti: 1:13pm On Jun 06, 2016 |
Copied!!!!! hope am first to comment hia?? |
Re: Overcoming The Nigerian Factor In Your Business by Beehshorp(m): 1:14pm On Jun 06, 2016 |
And the most important is to avoid APC!! 2 Likes |
Re: Overcoming The Nigerian Factor In Your Business by ikbnice(m): 1:15pm On Jun 06, 2016 |
the mere mentioning of Nigeria will make your business tremble and grumble. Nigeria is one hell of a country to do business in. |
Re: Overcoming The Nigerian Factor In Your Business by codemaster2much: 1:17pm On Jun 06, 2016 |
H |
Re: Overcoming The Nigerian Factor In Your Business by Youngzedd(m): 1:19pm On Jun 06, 2016 |
On point. 1 Like |
Re: Overcoming The Nigerian Factor In Your Business by freshdude99(m): 1:21pm On Jun 06, 2016 |
Another lobbish lite up from a substandard gladuate in a kwoshiokwo unibersity of zoo 2 Likes |
Re: Overcoming The Nigerian Factor In Your Business by Youpele52: 1:21pm On Jun 06, 2016 |
Brilliant 1 Like |
Re: Overcoming The Nigerian Factor In Your Business by mamba808(m): 1:39pm On Jun 06, 2016 |
Am candid opinion is to invest in education sector.... Academics or Vocational training programmes will increase your income speedily.... |
Re: Overcoming The Nigerian Factor In Your Business by mamba808(m): 1:40pm On Jun 06, 2016 |
My candid opinion is to invest in education sector.... Academics or Vocational training programmes will increase your income speedily.... |
Re: Overcoming The Nigerian Factor In Your Business by Pringlez: 1:55pm On Jun 06, 2016 |
[quote author=leksmedia post=46320417] You tried. But this your post isn't complete as you didn't mention one of the biggest problems that business owners face daily which is the ever tasking and demanding "Omoniles or area boys and task force from all quarters" 1 Like |
Re: Overcoming The Nigerian Factor In Your Business by amokeme(f): 1:58pm On Jun 06, 2016 |
ikbnice:And in this same Nigeria, people are still doing legal and successful businesses.. |
Re: Overcoming The Nigerian Factor In Your Business by ikbnice(m): 2:04pm On Jun 06, 2016 |
amokeme:Nt that they dont, it hasnt been easy. |
Re: Overcoming The Nigerian Factor In Your Business by lucarella: 2:19pm On Jun 06, 2016 |
Oh come on! Let's be honest. OP, If I'm doing all of this, there's no point of being in business. Almost all you've suggested will be achieved by having a huge capital base or liquid cash. The basic reason why Nigerians run businesses is to survive (profit). You're right on one thing, corruption has taken over the country. But if you say that you want to run your business legally without being corrupt, to be honest, your business cannot survive in this terrain. I run a business and I know what I'm talking about. 1 Like |
Re: Overcoming The Nigerian Factor In Your Business by truthalways(m): 3:58pm On Jun 06, 2016 |
Lovely write up |
Re: Overcoming The Nigerian Factor In Your Business by macino1(m): 7:18pm On Jun 06, 2016 |
cool |
Re: Overcoming The Nigerian Factor In Your Business by Emario48(m): 8:27pm On Jun 06, 2016 |
lucarella:hmmmmmm start confessing |
Re: Overcoming The Nigerian Factor In Your Business by Artorius(m): 8:33pm On Jun 06, 2016 |
Timely and helpful article, thank you! 1 Like |
Re: Overcoming The Nigerian Factor In Your Business by OLUJOSHINS(m): 9:22pm On Jun 06, 2016 |
Hmmmm. OP, I think U should add inferiority complex to the list. Explanation: most Nigerians have the belief that nothing good can come out of their land. They believe that imported goods, services, ideas & even individuals are better than their indigenously produced counter parts. |
Re: Overcoming The Nigerian Factor In Your Business by londoner: 10:04pm On Jun 06, 2016 |
overhypedsteve: The very same EPA GEJ refused to sign? The one Jonathan said was not it in the best interest of Nigeria? Oh so that is why he was removed and also why Bihari made frequent visits to the UK before he became president. I wondered why he was always pictures with Tony Blair. This is the beginning of the end of Nigeria as a sovereign nation if the EPA is signed. 2 Likes |
Re: Overcoming The Nigerian Factor In Your Business by professore(m): 10:14pm On Jun 06, 2016 |
This is nice |
Re: Overcoming The Nigerian Factor In Your Business by Phoenix001(m): 11:41pm On Jun 06, 2016 |
I like this post |
Re: Overcoming The Nigerian Factor In Your Business by GreatManBee: 9:51am On Jun 07, 2016 |
leksmedia: |
Re: Overcoming The Nigerian Factor In Your Business by leksmedia: 10:35am On Jun 07, 2016 |
Lots of companies are still making huge amount of money even in this reccession, you need to understand the onions , the issue is most people dont know how to play the game |
Re: Overcoming The Nigerian Factor In Your Business by DirtyGold: 6:17pm On Jun 07, 2016 |
chimah3: |
Re: Overcoming The Nigerian Factor In Your Business by hiphensales: 2:07pm On Jun 08, 2016 |
AWESOME!!!
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