I see clueless Teenagers and geriatric tribalists shouting around the forum each time about how Nigeria is an investor destination..

Yes once upon a time.it was. It especially during the early days of internet , then with the years these foreign companies started pulling out one by one .

Slowly and surely the decline in foreign firms as investors in Nigeria continued .

Now in my small circle I have tried to explain it to people that when these foreigners got past the propaganda of politicians shoutimg that we have a 200 million population thaw foreign firms saw the reality on Ground

That's why if you notice even the marquee Chinese firms do not come here despite politicians shoutimg propaganda everywhere that the Chinese love the Nigerian market

This is false infact there are more Chinese firms in Kenya than there are in Lagos and Abuja combined. ..

Okay let me post a copied explanation below hoping this clarifies everything

I used to be a big fan of brands advertising on Big Brother Naija when the cost of advertising on that platform was affordable.

Yes! Big Brother Naija still remains the most popular platform in the country for brand exposure but the problem I have with it at the moment is the unfair pricing that does not reflect the realities on ground.

In 2020, @VisageMediaNG_ paid DSTV 25 million for a Nigerian brand that wanted exposure on Big Brother Naija.

Before that time, we paid 10 million naira in 2017 to a client in the pharmaceutical industry who desperately needed the exposure.

In 2019, we paid 17 million for the same client on Big Brother Naija.

Things went haywire in 2021, as DSTV leveraged the fact that the show is a hot cake for brands looking for exposure by increasing the price for exposure beyond the reach of most Nigerian brands.

I’m not sure of the price again for this year’s Big Brother Naija, but the last time I asked, the cheapest price was 120 million, but it can be negotiated down to 100 million or $1 million if you want to be the frontline sponsor.

No matter how I try to rationalize this humungous amount to clients, the fact is that it does not make sense to splurge so much on just the Big Beother Naija advertisement.

And this is why

Nigeria has weak consumer purchasing power.

Even though we are a country of 200 million, we are poor, so our poverty does not reflect our large population when it comes to consumer spending.

Let me break it down.

DSTV's biggest market in Africa is South Africa, not Nigeria.

South Africa's population is just 59 million; our population is 200 million, but DSTV makes more money from a country with a smaller population for the same reasons.

The reason being that our large population does not translate to large consumer spending.

South Africa, with its smaller population, has more people who can afford to pay for DSTV every month than Nigeria.

With our 200 million population, manufacturing businesses in consumer goods should be flourishing, but this is not the case.

The most profitable business in Nigeria at the moment is owning a bank, not a company like Nestle.

Last year, Zenith Bank, the biggest bank in Nigeria, made over 200 billion in profit after tax, while Nestle, the largest food consumer company in Nigeria, made just 48 billion in profit after tax.

PZ Nigeria made a higher profit last year because they disposed of a property in Ikoyi belonging to PZ, which elevated their profit, but they made little profit selling consumer items like Morning Fresh, Premier, Premier Cool, Cussons Baby, Carex, Imperial Leather, Mamador, Devon Kings, Haier Thermocool, etc.

Cadbury is struggling and teetering on the brink.

If our 200 million population has a huge disposable income to spend, the way it is in China or the USA, companies like Nestle and PZ will be printing money from this market.

They will be balling hard as the executives will be clicking a bottle of champagne at Smoke and Mirrors, Lekki, every weekend.

Because of how poor we are, the businesses that scale faster in Nigeria are those that target poor people, our poor population like churches and betting companies, while the bigger consumer companies are struggling.

In a healthy economy, consumer brands generate more profits than banks.

Walmart, for instance, made $143.754 billion in profit in 2022, for the most part, selling consumer items to the average American, while JP Morgan, the biggest bank in America, made $14 billion in profit for the same year in review.

Different countries with different outcomes because of the purchasing power of the average citizens in the two countries.

With this said, it does not make any business sense to spend 100 million to advertise a product on Big Brother Naija at the moment, with the exception that the business is targeting African expansion, which entails exporting the product advertised on Big Brother Naija to other African countries that follow the show as well.

Nigeria has 200 million population yes, but with less than 2% of that population have any buying power at all. Basically 99% of your 200 million are poor people. Do you get it now ?

This is why after most foreign firms get here they leave after a while, from Rocket internet to seek group to Walmart to Lego to Gentech etc the list is endless...

There is just no profit to be made from your 200 million people, except your business caters to the poor, like pure water , agege bread , or food seller ..
Kenya is a more lucrative market , even Ghana . But arm chair economists who know nothing past wuate they learn from beer parlour will come here and be posting rubbish IGR stats and nonsensical Invest in Lagos mantra when the reality is that the country very poor

A small country of 15 million people in which 12 million out of those 15 million earn a minimum wage of above $500 is more profitable to a multinational like Sony unlike a country like Nigeria with 200 million poor with only 1% earning a minimum wage of over $100 dollars

Because each month you can confidently forecast how many people out of hat 14 million earners will purchase your service unlike Nigeria .

This is why even Twitter didn't want to open a branch in Nigeria

To summarise why Nigeria is not the giant of Africa is
High fuel prices despite being an fuel producing country
Incredible terrorism rate being the top ten most terrorised country in the world
Low GDP per capita
Mid-Low HDI
these are simply my reasons
It's dollar exchange rate is so bad that even C.A.R has a higher exchange rate then it

TheIgborepublic:
To summarise why Nigeria is not the giant of Africa is
High fuel prices despite being an oil producing country
Incredible terrorism rate being the top ten most terrorised country in the world
Low GDP per capita
Mid-Low HDI
these are simply my reasons

No this is partially correct. Maybe you don't understand the reality fully.

Back then there as no proper data to understand the buying market of Nigeria so foreign investors relied on propaganda and lies of paid propaganda machine who spins lies and bogus figures of GDP IGR etc

But today so many companies have left Nigeria and crated case study reports and data in foreign business institutes , so likely Investors don't need to rely on government fake figures and propaganda.

The likes of Nestle , Glaxo , KLM, Lufthansa, ToysRUs , Kellogs etc just to name a few who all at one time had head offices in Lagos state have all run from Nigeria and can accurately paint a picture of the poor buying market to their counterparts.

Until the government learns the importance of bringing back the middle class and improving the lives of the citizens,the market will keep shrinking and foreign investors just won't come.

The politicians thought by making the people poorer it will ensure they have control over the masses , yes this true but the down side far outweighs the benefits . As at today there is middle class in Nigeria , only the rich or the poor . Unfortunately for the nitwits I'm Abuja ,it is the middle class that drives economy, because they are re market buyers , and as they spend there is assured liquidity in the economy

Unperturbedpota:


No this is partially correct. Maybe you don't understand the reality fully.

Again both politicians and citizens are heavily engaged in different levels of capital flight schemes such as Looting, money laundry, japaing

Less and less revenue are being spent in Nigeria by Nigerians.

For example As a politician the frail constitution allows HIM to walk into the treasury and begin to pack money into his private SUV.

VeeVeeMyLuv:

Again both politicians and citizens are heavily engaged in different levels of capital flight schemes such as Looting, money laundry, japaing

Less and less revenue are being spent in Nigeria by Nigerians.

For example As a politician the frail constitution allows an HIM to walk into the treasury and begin to pack money into his private SUV.

This is looking at it superficially. Let's look at the eradication of the middle class .

What do you think led to this ?

VeeVeeMyLuv:

Again both politicians and citizens are heavily engaged in different levels of capital flight schemes such as Looting, money laundry, japaing

Less and less revenue are being spent in Nigeria by Nigerians.

For example As a politician the frail constitution allows an HIM to walk into the treasury and begin to pack money into his private SUV.

Okay , pls look at my last mention

Unperturbedpota:


This is looking at it superficially. Let's look at the eradication of the middle class .

What do you think led to this ?

Leaders, ordinary citizens losing faith and hope in their country, I mean almost everyone no longer believe in Nigeria dream if it ever existed.

Leaders are on a mission to destroy the Nigerian economy, they are doing everything possible to finish off the middle class.

VeeVeeMyLuv:

Leaders, ordinary citizens losing faith and hope in their country, I mean almost everyone no longer believe in Nigeria dream if it ever existed.

Leaders are on a mission to destroy the Nigerian economy, they are doing everything possible to finish off the middle class.

There is currently no middle class. Now let me explain .. everyone has that friend or acquaintance who despite warning let's say 650k Naira monthly like you is always broke barey 2 weeks after wages .

Such an individual allowed to fester and bocme part of him or her a culture of living byond his or her means.

This perfectly mirrors Nigeria . We lived on false foundations for far too long. We displayed numbers and stats backed by nothing but hearsay.

Where is the national database system. Despite billions of USD spent over decades Nigeria doesn't have a remotely credible database of its citizens.

If I were to say to you, tell me the range not exact but the range of population in each state . I can bet you would be far off the real data.

D you even know Nigerians true population? When was the last census? What's the death rate weekly in Nigeria due to kidnapped accidents age or disease? Nigeria has no birthrate or deathrate database.

How infact do you kmow if truly Nigeria's population is 20p million? When it maybe be 10 million or even 400 million?

Now you see why do many companies come into Nigeria and fold up after a while? There is nothing legitimate database wise or stats that you can say are concrete .

Everything is bloated padded etc. When I see people claim Anambra generates this or that or when I see some say Lagos has a higher GDP than so and so I just laugh so hard.

See 99% of all Stats you see in Nigeria are false . Fake stats! No legitimate accurate data.

This is why when foreigners come in to do business they see. Stack reality between what the Laos chamber of commerce showed them in their power point presentation versus reality.

Nigeria has sent more foreign companies running than any other country in Africa not engaged in warfare or political unrest

because we dont take igbos serious in anything no more,soo they took away the title from us....

kiki....

tsdarkside:
because we dont take igbos serious in anything no more,soo they took away the title from us....

kiki....

This is not a joking thread. Pls respect yourself

Unperturbedpota:


This is not a joking thread. Pls respect yourself

wat....??

igbos....!!
give us back our giant of africa title....!!

kiki....

tsdarkside:


wat....??

igbos....!!
give us back our giant of africa title....!!

kiki....

Unperturbedpota:


This is looking at it superficially. Let's look at the eradication of the middle class .

What do you think led to this ?

Lack of investment in education .
I am afraid that Nigeria has squandered its opportunity .
The money we made from crude was either looted, used for white elephant projects like ajaokuta steel, festac or funding of socialist policies .
Merely looking at our budgets over the years u will see that, there is no plan for the immediate and the future .