PESTLE ANALYSIS

OF NIGERIA

Name:- Drishti Nikhil Desai

Roll No:- 11
CRKIMR- MMS- FINANCE BATCH -
2022-24 SEM- III I.B.
 INTRODUCTION
Nigeria officially the Federal Republic of Nigeria, is a country in West Africa. The
name Nigeria derives from the Niger River running through the country. This name
was coined on 8 January 1897, by the British journalist Flora Shaw. The
neighbouring Republic of Niger takes its name from the same river. Nigeria has
many natural landmarks and wildlife reserves. Protected areas such as Cross River
National Park and Yankari National Park have waterfalls, dense rainforest, savanna
and rare primate habitats. One of the most recognizable sites is Zuma Rock, a
725m-tall monolith outside the capital of Abuja that’s pictured on the national
currency.

It is situated between the Sahel to the north and the Gulf of Guinea to the south in
the Atlantic Ocean. It covers an area of 923,769 square kilometres (356,669 sq. mi),
and with a population of over 230 million, it is the most populous country in Africa
and the world's sixth-most populous country. Nigeria borders Niger in the
north, Chad in the northeast, Cameroon in the east, and Benin in the west. Nigeria is
a federal republic comprising 36 states and the Federal Capital Territory, where the
capital, Abuja, is located. The largest city in Nigeria is Lagos, one of the
largest metropolitan areas in the world and the largest in Africa.

Nigeria is a multinational state inhabited by more than 250 ethnic

groups speaking 500 distinct languages, all identifying with a wide variety of
cultures. The three largest ethnic groups are the Hausa in the north, Yoruba in the
west, and Igbo in the east, together constituting over 60% of the total population.
The official language is English, chosen to facilitate linguistic unity at the national
level. Nigeria's constitution ensures de jure freedom of religion and it is home to
some of the world's largest Muslim and Christian populations. Nigeria is divided
roughly in half between Muslims, who live mostly in the north, and Christians, who
live mostly in the south; indigenous religions, such as those native to
the Igbo and Yoruba ethnicities, are in the minority.

Nigeria is a regional power in Africa and a middle power in international

affairs. Nigeria's economy is the largest in Africa, the 39th-largest in the world by
nominal GDP, and 27th-largest by PPP. Nigeria is often referred to as the Giant of
Africa owing to its large population and economy and is considered to be
an emerging market by the World Bank. Nigeria is a founding member of the African
Union and a member of many international organizations, including the United
Nations, the Commonwealth of Nations, NAM, the Economic Community of West
African States, Organisation of Islamic Cooperation and OPEC. It is also a member
of the informal MINT group of countries and is one of the Next Eleven economies.

Location of Nigeria

Nigeria is located in western Africa. Nigeria is bordered by the Gulf of Guinea, Benin
to the west, Niger to the north, and Chad and Cameroon to the east.
Nigeria is a country on the west coast of Africa, bordering the North Atlantic
Ocean. It's the most populated country on the African continent.

Nigeria is bordered by:

 North: Niger
 East: Chad and Cameroon
 West: Benin
 South: The Gulf of Guinea, part of the Atlantic Ocean
Nigeria also shares maritime borders with:
 Equatorial Guinea
 Ghana
 São Tomé and Príncipe

NATIONAL FLAG OF NIGERIA

EMBLEM OF NIGERIA
Key Information about Nigeria:-

1.OFFICIAL NAME:- Federal Republic of Nigeria.

2.NAMES OF COUNTRY IN LOCAL LANGUAGES:
 Jamhuriyar Tarayyar Najeriya in Hausa
 Ọ̀ hàńjíkọ̀ Ọ̀ hànézè Naìjíríyà in Igbo
 Orílẹ̀ -èdè Olómìniira Àpapọ̀ Nàìjíríà Yoruba
3.CAPITAL: ABUJA
4.LARGEST CITY:- Lagos
5.NATIONAL LANGUAGES: -Hausa,Igbo, Yoruba
6.REGIONAL LANGUAGES: - Over 525 Languages
7.PRESIDENT:- Bola Tinubu
8.GOVERNMENT:- Federal presidential constitutional republic
9.POPULATION:- 230,842,743 as Central Intelligence Agency of USA.
10.CURRENCY:- Naira, Symbol ₦ ,foreign exchange name is NGN.
11.GDP :- GDP (nominal) is $390.002 Billiion in 2023.
12.AREA:- 923,769 km2
 Political Environment

1. Legislature of Nigeria's Government:

Most modern government is made up of three arms working together -
namely the Executive, the Judiciary, and the Legislature. The Executive
arm is responsible for implementing the laws made by the Legislature and
enforcing same, the Legislature is responsible for making the laws, and the
Judiciary is responsible for interpreting the law. This is what obtains both at
the Federal level and the state level in Nigeria. At the Federal level,
President of the Federal Republic of Nigeria is the head of the Executive
arm of Government, the Senate President is the head of the National
Assembly [a bicameral Legislature comprised of the Senate of House of
Representatives], and the Chief Justice of the Supreme Court of Nigeria is
the head of the Judiciary. At the State level, the Governor of the State is the
head of the Executive, the Speaker of the House of Representatives of the
State is the head of the Legislature, and the Chief Judge of the High Court
of the State is the head of the Judiciary. 1 Similarly, Section 4 (6) (7) of the
Constitution empowers the State House of Assembly to make similar laws
for the State for matters in the Concurrent List. 2 Section 4 (2) (3) of the
Constitution refer to the Exclusive Legislative List contained in Part I of the
Second Schedule. It is a list of 68 items on which only the NASS can
legislate on. 3 Section 4 (4)(a) the Constitution. Each arm of government
has its own duties and obligations in the performance of its constitutional
role and must work together for the good government, peace and progress
of the country. This article is an explanation of the law-making process at
the National Assembly (NASS) and the stages each Bill must go through
before it eventually becomes law.
Structure:
Presidential Republic: The President, elected directly by the
people, functions as Head of State and Head of Government, leading
the executive branch.
Federal System: Power is divided between the federal government
and 36 states, each with its own elected governor and legislature. This
division aims to balance national unity with regional autonomy.
Three Tiers of Government: Federal, state, and local governments
(774 LGAs) share responsibilities for various functions like
education, healthcare, and infrastructure.

2. Main Political parties:-

 The political parties play major role in political environment of Nigeria.
The All Progressives Congress (APC)
The All Progressives Congress (APC) is one of the major political
parties in Nigeria. It was formed in 2013 as a merger of four opposition
parties, namely the Action Congress of Nigeria (ACN), the Congress
for Progressive Change (CPC), the All Nigeria Peoples Party (ANPP),
and a faction of the All Progressives Grand Alliance (APGA). The
party’s ideology is centered around economic liberalism and a
commitment to fighting corruption.

The People’s Democratic Party (PDP)

The People’s Democratic Party (PDP) is the largest political party in
Nigeria. It was formed in 1998, following the end of military rule in the
country. The party’s ideology is based on social democracy, with a
focus on providing social services and reducing poverty.

The Social Democratic Party (SDP)

The Social Democratic Party (SDP) is a political party in Nigeria that
was formed in 2013. It is one of the few political parties in the country
that is not associated with either the APC or the PDP. The party’s
ideology is based on social democracy, with a focus on reducing
poverty and promoting social justice.

According to Statista, the most popular political parties in Nigeria

in 2022 were:
All Progressive Congress (APC): 16.9% in urban areas and 22.8% in
rural areas
People's Democratic Party (PDP): 12.2% in urban areas and 19.5% in
rural areas
Young Professional Party (YPP): 0% in urban areas and 0.3% in rural
areas
All Progressives Grand Alliance (APGA): 1.4% in urban areas and
0.3% in rural areas
The All Progressives Congress (APC) and the Peoples Democratic
Party (PDP) are two of the main political parties in Nigeria today.

3.Corruption:-
Corruption is the first political factor in Political environment that affects
businesses in Nigeria. Corruption is pervasive in Nigeria and has been a
significant impediment to economic growth and development.
The country ranks low in the corruption perception index, which has
deterred foreign investors from investing.Corruption has also led to a lack
of transparency and accountability in government dealings, making it
difficult for businesses to navigate the regulatory environment.
Corruption in Nigeria is widespread and affects all levels of
government. It includes contract fraud, bribery, money laundering,
embezzlement, and seizing salaries from fake workers.
In 2022, Nigeria scored 24 out of 100 points on Transparency
International's Corruption Perceptions Index (CPI). This is below the
global average of 43 out of 100.
According to the World Justice Project, corruption has cost Nigeria more
than $550 billion since it gained independence 60 years ago. In 2019,
public officials in Nigeria received around NGN 675 billion in cash bribes,
which is 0.52% of the country's GDP.
The Economic and Financial Crimes Commission of Nigeria recovered at
least $750 million in local and foreign currency linked to corruption and
fraud in 2021.

4.Bad Governance:-

The failure of governance in Nigeria manifests in the declining capacity of

political leaders to recognize systemic risks such as election fraud,
terrorist attacks, herder-farmer conflict, armed banditry, and police
brutality and put in place the necessary measures to navigate these
challenges. In contrast with the current system in which leadership is
attained through bribery, intimidation, and violence, Nigeria needs a
system of governance that is founded on the pedigree of its political
leaders and the education of its voters.
Nigeria has consistently ranked low in the World Governance Index in
areas such as government effectiveness, political stability and the
presence of violence and terrorism, rule of law, and control of
corruption. Nigeria is perceived in the 2020 Transparency International
Corruption Perception Index as a highly corrupt country with a score of
25/100 while its corruption ranking increased from 146 in 2019 to 149 in
2020 out of 180 countries surveyed. While President Muhammadu Buhari
won the 2015 election on his promise to fight insecurity and corruption,
his promises went unfulfilled; Boko Haram continues to unleash
unspeakable violence on civilians while the fight against corruption is
counterproductive.

4.Political instability :-

Nigerian political instability stems from

different political understandings, interpretations and applications by
different people in government.This is coupled with the inherited colonial
system of governance that largely conflicts with the political belief of
indigenous Nigerian ethnic groups. The paper also
finds out that political instability in Nigeria results to spate of militarized
polity, incessant agitations, insurgency, corruption, poor leadership and
followership. Therefore unless Nigerian society is restructured in a way
that gives
diverse ethnic groups and citizens a sense of belonging, the country will
continue to experience dire political instability.

5.Nigerian Tax System

Nigerian Tax Laws

Taxes are established by law in Nigeria. By implication, such tax must

have been passed into law through enactment of relevant statute (Act,
By-law, decree among others). The tax law establishes the administrative
body and specify its tax jurisdiction. Tax laws impose tax at a
predetermined rate on specified income, profit, gain, and value of
transactions of taxable persons. These laws are amended from time to
time in view of meeting present economic situation, complexity of
financial transaction, welfare, and social needs.

Structure of Nigerian Tax System

Tax structure in Nigeria is tailored towards Nigerian governance hierarchy

(Federal, State and Local Government). Nigeria operates a decentralized
tax system where each level of government is independently responsible
for the administration of taxes within its jurisdiction. Nigeria generate
revenue to fund government expenditure through a pool of taxes from
each tier of government. A body is established for taxes due to each tier
of government.

Tax Authorities
Federal Inland Revenue Service (FIRS) is the body that is responsible for
the administration of taxes that are due to the federal government. The
various state boards of internal revenue administer taxes that are due to
state governments while the local government revenue committees
administer taxes that are due to local governments. However, joint tax
board advise, harmonize double taxation, and propose amendment.

Taxes

Companies Income Tax, Education Tax, Stamp Duties, Custom Duties,

Excise Duties, Withholding Tax and Value Added Tax are the major taxes
administered by Federal Inland Revenue Service, the State Board of
Internal Revenue majorly administer Personal Income Tax and
Withholding Tax, while Local Government majorly administer levies.

Basis of Tax Administration

Taxes are established by tax statutes which form the basis of tax
administration. These tax statutes usually specify the tax rate, due date,
basis of assessment, offences, and penalties of the identified taxes.

Tax administration involves the registration, assessment, returns,

collection, compliance monitoring, compliance enforcement, sanction,
taxpayer’s education and awareness and any other activity that can
improve the efficiency and effectiveness of taxation.

6.Judicidial System: -

The constitution guarantees the independence of the judiciary and

permits the exercise of Sharia Law for consenting Muslims.

The Supreme Court is presided over by the chief justice and has up to 15
justices. It is the final court of appeal; and it has jurisdiction over disputes
between the states, or between the federal government and any state,
particularly in relation to the allocation of funds or resources, and over
disputes arising from elections. The Federal Court of Appeal is headed
by a president and has at least 35 justices, with a minimum of three with
expertise in Sharia Law, and three in customary law.

There is the Federal High Court and a high court in each of the 36 states.
States are entitled to have a Sharia court of appeal and a customary
court of appeal.

Judges in the federal courts are appointed by the president on the

recommendation of the National Judicial Council and approved by the
Senate. Judges in the state high courts are appointed by the state
governors, also on the recommendation of the National Judicial Council,
and approved by the state assembly.

7.Foreign Relations with other African Countries:-

Nigeria's foreign relations in Africa are both complex and dynamic,
shaped by historical ties, cultural affinity, and strategic interests. Here's a
glimpse into some key aspects:
Historical Ties and Cooperation:

Pan-Africanism: Nigeria has been a leading voice in the Pan-African

movement, advocating for continental unity and cooperation. It actively
participates in the African Union (AU) and has contributed troops to
peacekeeping missions across the continent.

Regional Economic Communities: Nigeria plays a major role in

regional economic communities like ECOWAS (Economic Community of
West African States) and contributes to initiatives promoting trade and
development within Africa.
Bilateral Relations: Nigeria maintains strong bilateral ties with several
African countries, particularly its immediate neighbors. These
relationships often involve collaboration on issues like border
security, trade, and infrastructure development.

Challenges and Opportunities:

Security Concerns: The spread of terrorism and instability in some
African regions poses security challenges for Nigeria, requiring regional
cooperation to address these threats.

Resource Management: Competition for resources like water and oil

can sometimes strain relations between African nations. Nigeria
advocates for sustainable resource management and equitable
distribution to promote regional stability.

Economic Integration: Efforts towards greater economic integration

across Africa offer significant opportunities for growth and
development. Nigeria actively participates in initiatives aimed at creating
a continental free trade area and boosting intra-African trade.
 Economic Environment

The economy of Nigeria is a middle-income, mixed economy and

emerging market with expanding manufacturing, financial, service,
communications, technology, and entertainment sectors. Nigeria is a
multi-ethnic and culturally diverse federation of 36 autonomous states
and the Federal Capital Territory. Nigeria isThe political landscape is
partly dominated by the ruling All Progressives Congress party (APC)
which controls the executive arm of government and holds majority seats
at both the Senate and House of Representatives in parliament, and
majority of the States.
President Bola Ahmed Tinubu was sworn into office on May 29, 2023,
having won the February 2023 Presidential election. Nigeria continues to
face many social and economic challenges that include insecurity such
as banditry and kidnappings especially in the northwest region, continued
insurgency by terrorist groups in the north-east, and separatist agitations
in the south-east. President Tinubu has continuously pledged to turn
around the economy and ensure security across the country. Civil
society, the media and other civil groups have committed to sustain
advocacy for reforms and actions towards better economic and social
outcomes for citizens.

Economic Overview
Between 2000 and 2014, Nigeria’s economy experienced broad-based
and sustained growth of over 7% annually on average, benefitting from
favorable global conditions, and macroeconomic and first-stage structural
reforms. From 2015-2022, however, growth rates decreased and GDP
per capita flattened, driven by monetary and exchange rate policy
distortions, increasing fiscal deficits due to lower oil production and a
costly fuel subsidy program, increased trade protectionism, and external
shocks such as the COVID-19 pandemic. Weakened economic
fundamentals led the country’s persistent inflation to reach a 17-year high
of 25.8% in August 2023, which, in combination with sluggish growth, is
leaving millions of Nigerians in poverty.
Following a change in administration in May 2023, the country is now at a
crossroads, and has a unique opportunity to return to a sustainable and
inclusive growth path. Recognizing the need to change course, the new
administration has undertaken key reforms to restore macroeconomic
stability by removing the gasoline subsidy and unifying and significantly
liberalizing the exchange rate. These reforms, together with global oil
prices remaining above their historical averages, are expected to begin to
reduce fiscal pressures, and unwind the critical macroeconomic
distortions that held back growth in the past. The economy is expected to
grow at an average of 3.4% between 2023 and 2025, benefitting from the
reforms undertaken, a recovery in the agriculture and services sectors,
and, over time, increased scope for government development spending.
If the reform momentum is maintained, concerted efforts to achieve fiscal
and monetary policy consolidation, reduce insecurity, strengthen public
services, and improve the business environment and openness to trade,
could boost investments and productivity, allowing Nigeria to return to a
high growth path. Yet, downside risks to the outlook are high, and include
fading or reversing the reform drive, domestic and regional instability, as
well as climate change effects.

Development Challenges
Despite having the largest economy and population in Africa, Nigeria
offers limited opportunities to most of its citizens. A Nigerian born in 2020
was expected to be a future worker 36% as productive as they could
have been if they had full access to education and health, the 7th lowest
human capital index in the world. Weak job creation and entrepreneurial
prospects stifle the absorption of the 3.5 million Nigerians entering the
labor force every year, and many workers choose to emigrate in search
of better opportunities. The poverty rate is expected to reach 37% in
2023, with an estimated 84 million Nigerians living below the poverty line
— the world’s second-largest poor population after India. Spatial
inequality continues to be large, with the best-performing regions of
Nigeria comparing favorably to upper middle-income countries, while the
worst performing states fare below the average for low-income. In most
areas of Nigeria, state capacity is low, service delivery is limited, and
insecurity and violence are widespread. Wide infrastructure gaps
constrain access to electricity and hinder the domestic economic
integration that would allow the country to leverage its large market size.
Emerging problems such as the increased severity and frequency of
extreme weather events, especially in the northern parts of the country,
add to these long-standing development challenges.
Recent reforms offer a launching pad to a new social compact for
Nigeria’s development. Strengthening macroeconomic fundamentals will
allow structural reforms to be pursued and economic growth to be
restored. The current low social and economic equilibrium could be
switched to one marked by a better funded and more effective State that
provides efficient public services, public goods, and a conducive
economic environment for the private sector to flourish and create more
quality jobs for Nigerians.
Source:- World Bank
Key Economic points:
 The Foreign Trade Statistics report shows that Nigeria’s trade
deficit in the second quarter of 2023 has hit Naira 5.7 trillion.
 Income classification:- Per capita Income
 Nigeria belongs to Middle income countries.
 GDP Growth rate: A year-on-year growth of 2.31% in real terms
 Inflation Rate:- 28.2% as per November 2023 which is high inflation.
 Exchange rate: 1 NGN(Naira) = 0.00110555 USD
 Human Development Index: It is low. The HDI index was around
0.53 in 2023.

Socio-Cultural Environment

Nigeria is a multiethnic country in Northern Africa. With nearly 200 million

inhabitants, it also happens to be one of the world's largest countries by
population. The culture of the country is diverse and tends to differ from
north to south.

The map above shows the ethnic composition of Nigeria.

Below are some of the most notable things about Nigerian culture.

 Language
Nigeria’s culture is made up of several ethnic groups that speak 527
different languages. The number of ethnic groups and dialects stand at
more than 1,150. Some of the most prominent ethnic groups include the
likes of the Fulani, Hausa, Igbo, Yoruba, and Ijaw. Minority ethnic groups
live throughout the nation although higher concentrations of these groups
live in the northern and the middle regions of Nigeria.

 Nigeria Traditions
Nigerian traditions are wide and vary in the different cultures. For
example, it is typical for Nigerians to have three weddings, unless they
are getting married to foreigners. The first wedding is traditional, the
second one being in a court, while the third is in the church or the
mosque. The rationale behind these weddings is that the union needs to
be recognized by religion, the law, and by tradition. Other traditions
include the mother-in-law helping the daughter-in-law after giving birth
and younger men going for apprenticeships with older and wealthier
men.

 Religion
Nigerians in earlier times were free to put faith in whatever and whoever
was most dear to their tribes and themselves. It was a trust in nature and
animism that projected itself in giving strength and value to that
worshiper. Indigenous religions soon became an important tradition of
Nigerian society and maintained moral order. This traditional worship was
done through an intermediary who gave favor only after a blood sacrifice.
The arrival of Muslims in Nigeria put a stop to these sacrifices, and Islam
became firmly established in northern Nigeria. The introduction of
Christianity began with the arrival of British missionaries in the middle
and southern regions of Nigeria. Today, while almost all Nigerians are
either Christian or Muslim, many continue to mingle these faiths with
indigenous beliefs. This mix of religious practice is a result of Nigerians’
traditional belief in freedom of worship.

 Festivals
Nigeria, with its 36 states (Including its federal capital territory), is
blessed with various tribes and ethnic groups, with their respective
languages, cultures and traditions. Each of these tribes have their
various festivals celebrated at different times of the year and for various
reasons.The festivals are Lagos carnival, Eyo festival, Yam festival where
yam porridge is eaten, Eid ul Mohammad, Durbar festival and much
more.There are around 20 festivals of Nigeria.

 Nigerian Food
Nigerian food is mostly made up of meals that are high in carbohydrates,
such as cassavas, rice, maize, yams, and plenty of vegetables. There
are many ways that these meals are prepared. For example, the
cassavas can be ground up and the flour used to make a delicious and
inexpensive porridge. The yams can be mashed or fried in oil. Meat is
another delicacy that is prepared into something known as suya (a form
of meat resembling barbecue meat) and wild meat (from giraffes and
antelopes). Most of the foods are spicy, especially in the west and the
south. Other forms of traditional food include fufu, eba, okra, egusi, and
ogbono. Drinks include traditional brews like palm wine.

 Nigerian Clothing
Nigeria itself is home to several textile industries that go towards clothing
the Nigerian people. Fashion is diverse and varies depending on the
ethnic groups, culture, and religion. In recent time, the styles have
evolved to more contemporary designs. Traditionally, cultures such as
the Yoruba used to wear clothing such as gele (a cloth wrapped around
the head by women), afbada (a robe for formal functions), and other
forms of attire. Other cultures, such as the Igbo used to wear clothes only
for modesty in past times, which is unlike other cultures where clothing
has always been a symbol of status.

 Family Life
Families are a crucial aspect of Nigerian society and are typically larger
than in the west. The larger number of families is because a higher
number of children improves the social standing of a man. For this
reason, newborns are regarded with joy and pride as they are the future.
In some of Nigeria's northern states, polygamy is legal and men may
marry several wives. However, none of the states in southern Nigeria
allow this practice.

 Business Mentality
Nigerians are generally warm and open to meeting and doing business
with foreigners, although the business environment can be competitive
and challenging. Xenophobia is the fear and hostility expressed against
anyone perceived as a stranger, based on personal meaningful
considerations. Nigeria is made up of more than 250 ethnic groups. Its
history is demonstrates many examples of ethnic rivalry and
competition. Competition for resources has been a big driver for conflicts
along multiple groups. This has been fueled by a number of factors,
including economic insecurity, political instability, and religious and ethnic
tensions. In recent years, there have been numerous reports of
xenophobic attacks against foreigners living in Nigeria, particularly those
from other African countries. Likewise, Nigerians have been the victim of
Xenophobic attacks from people in other countries, including South
Africa.
While most visits for foreigners are trouble-free, insecurity is increasing
across Nigeria. Kidnapping, violent crime, and inter-communal violence
occurs throughout all regions of Nigeria. The potential threat of violence
and instability can also damage a country’s reputation, which can make it
less attractive to foreign investors and tourists. Nigeria’s business culture
is complex and diverse, and it has the potential to drive the country’s
economic growth and development.

 Dress Code for Meetings

Nigeria, in general, is a fashion-conscious society, which means that

Nigerian professionals are usually very well-dressed and, in most
instances, dressed in formal wear. However, the way in which Nigerian
professionals dress is also dependent on the industry they’re working in
and the age of their business. For example, professionals in the financial
services industry are typically dressed more formally in suits, while
employees and executives of newer technology companies tend to dress
in more casual clothing.
Understanding the demographics and the business culture of the
company you are meeting with should inform what you choose to wear.
Striking a balance between your personal style, which makes you
comfortable, and the business etiquette in Nigeria is ideal.

 Time and Scheduling

Generally, Nigerians live and work at a more relaxed pace than you might
be used to. Punctuality is valued, but sticking to schedules is less
important than an individual’s particular situation. Also, due to the erratic
traffic conditions, being on time can get quite hard. Patience is a virtue
you will sorely need in Nigerian businesses. It is often wise to schedule
important meetings well ahead and to call in the day before to confirm.

 Communication Styles
Most business owners in Nigeria are proficient in English, which means
most of your communication will happen in English. However,
communication styles will vary amongst individuals, which means that to
operate a business in Nigeria you will have to be attentive and shift your
communication style to match each business professional with whom you
make a connection.
Generally speaking, business in Nigeria is very relationship-based and
face-to-face meetings are the norm. You should also expect to spend a
lot of time getting to know your new business contact as you attempt to
understand your mutual business priorities.
Furthermore, Nigerians would rather converse over the phone than by
text message or e-mail. Therefore, you should opt to speak over the
phone if you are unable to meet in person, as this will help you
communicate more effectively and accomplish more of your business
goals. With that said, do not expect quick and clear responses to e-mail
inquiries from business professionals in Nigeria.

 Respecting the Hierarchy

Nigerian business culture is hierarchical in nature. People generally defer
to those who are older than them or who occupy a higher official position
than they do. Since respect is such a big part of Nigerian culture, being
aware of the age and the official position of the person you are currently
working with or looking to work with is essential.
If you do not respect this aspect of Nigerian business culture, you risk
sabotaging current or potential business relationships, as professionals
will not want to continue participating in business discussions if they feel
as though they have been disrespected. As a rule of thumb, it pays to be
respectful to everyone you encounter from the secretary to the managing
director.

 Meetings

The most effective way to communicate with Nigerian professionals is

through in-person meetings, as face-to-face meetings are the most
efficient way to vet a potential business partner and assess their level of
professionalism. Don’t be too surprised if you call a Nigerian professional
to talk business over the phone only to have them request that you come
to their office to continue the discussion. It’s clear that Nigerian business
people believe that if important matters need to be discussed, then you
will make the trip to their office to discuss them even if the meeting is
only 15 minutes long.

Depending on your relationship with the person you are having a meeting
with, keep the meeting professional and respectful. Most Nigerian
business owners will do the same, however, do not be alarmed if the
person you are meeting with pauses the meeting to take an incoming
phone call. Even though this may seem unprofessional, it is
commonplace and should be taken in stride especially when you are
forging a new professional relationship.
Lastly, a lot of business discussions occur in informal meetings. These
meetings are known to take place in bars or lounges after business
hours. Therefore, it is not unusual to receive an invitation to have
important conversations in a casual setting, but you can feel free to
accept or decline invitations as you see fit.

 Body Language
Agreeing with people is considered to be a sign of respect. Nigerians generally
say "yes" to a request because their respect for you does not allow them to
say "no."
Among traditional Nigerian business people, an appointment is rarely private.
Try not to be irritated if your meeting is interrupted by phone calls and/or visits
from your client's friends and family.
Do not eat everything on your plate; leaving some food is a signal that you
have had enough. If you clean your plate, you are indicating that you want
more food.
Nigerians tend to stand close to each other while speaking. If you are
uncomfortable conversing at this distance, try to refrain from backing up

 Business Relationships

Building trustworthy business partnerships in the Nigerian market is one

of the most important things you will find yourself doing as a new entrant.
Due to how essential developing trust is when doing business in Nigeria,
you will spend a lot of time vetting people in the business community as
you explore forming commercial relationships with each other.

Forming these relationships might take some time in the beginning, but
credible business relationships will ultimately yield so many benefits for
your company in the future. Try to build trust and manage your
relationships with business colleagues in Nigeria by staying in consistent
communication with them about professional matters, as well as
checking in with them in non-official capacities.

Legal Environment
The legal system in Nigeria is a complex network of laws, regulations,
and processes that govern the country. Understanding this system is
crucial for citizens, legal practitioners, and investors alike. In this article,
we provide an overview of the structure, laws, and practices that make
up the Nigerian legal system.
Nigeria’s legal system is a combination of common law, Islamic law, and
customary law, with its foundation based on the English legal system
introduced during the colonial era. It is comprised of the Constitution of
the Federal Republic of Nigeria, federal and state statutes, and case law.
It is essential to comprehend the Nigerian legal system for several
reasons. Firstly, it promotes good governance and the rule of law.
Secondly, individuals and businesses must navigate the system to
protect their rights and interests. Thirdly, investors must understand the
legal framework for doing business in Nigeria.

The law of Nigeria consists of courts, offences, and various types of laws.
Nigeria has its own constitution which was established on 29 May 1999.
The Constitution of Nigeria is the supreme law of the country. There are
four distinct legal systems in Nigeria, which include English law, Common
law, Customary law, and Sharia Law. English law in Nigeria is derived
from the colonial Nigeria, while common law is a development from its
post-colonial independence.
Customary law is derived from indigenous traditional norms and cultural
practices, including the dispute resolution meetings of pre-colonial
Yoruba land secret societies and the Èkpè and Okónkò of Igboland and
Ibibioland. Sharia Law (also known as Islamic Law) used to be used only
in Northern Nigeria, where Islam is the predominant religion. It is also
being used in Lagos State, Oyo State, Kwara State, Ogun State, and
Osun State by Muslims. The country has a judicial branch, the highest
court of which is the Supreme Court of Nigeria.

The Most important acts in Nigeria are:

 The Nigerian Criminal Code is currently chapter 77 of Laws of
the Federation of Nigeria 1990; it applies only to the southern,
Christian-dominated states since 1963. It derives from the British
colonial code introduced by High Commissioner Frederick
Lugard, 1st Baron Lugard in 1904, became the Criminal Code of
1916, was included as chapter 42 in the 1958 edition of the Laws
of the Federation of Nigeria; until 1959 it only applied to the
northern states of Nigeria, but since 1963 it only applies to the
southern states of Nigeria.
 NATIONAL ENVIRONMENTAL STANDARDS REGULATIONS
AND ENFORCEMENT AGENCY (ESTABLISHMENT) ACT 2007
(NESREA)

The NATIONAL ENVIRONMENTAL STANDARDS

REGULATIONS AND ENFORCEMENT AGENCY
(ESTABLISHMENT) ACT 2007 is one of the Environmental Laws
in Nigeria that contains regulations that were made by the
Minister of Environment under section 34 of the Act.

This statute was created under the 1999 Constitution of the

Federal Republic of Nigeria (section 20) and repealed the
Federal Environmental Protection Act 1988.

The NESREA, the major federal body responsible for protecting

Nigeria’s environment is responsible for enforcing all
environmental laws, regulations, guidelines, and standards.

This includes enforcing environmental conventions, treaties, and

protocols to which Nigeria is a signatory. These regulations
include; National Environmental (Air Quality Control)
Regulations, 2011;National Environmental (Base Metal, Iron and
Steel Manufacturing-Recycling Industries Sector);National
Environmental (Chemical, Pharmaceutical, Soap And Detergent
Manufacturing Industries) Regulations, 2009 ;National
Environmental (Coastal and Marine Area Protection)
Regulations, 2011;National Environmental (Construction Sector)
Regulations, 2010;National Environmental (Control of Alien and
Invasive Species) Regulations, 2013; National Environmental
(Control of Bush, Forest Fire, and Open Burning) Regulations,
2011.

 The Nigerian Penal Code, also known as the Penal Code of

Northern Nigeria, is currently chapter 89 of the Laws of Northern
Nigeria 1963; it applies only to the northern, Muslim-dominated
states since 1960. It was originally introduced on 30 September
1960, derived from the Sudanese Penal Code, which in turn was
derived from the Indian Penal Code.

 Nigerian labour law refers to the legal framework that governs

the relationship between employers and employees in Nigeria.
The law sets out the rights and obligations of both employers and
 employees and provides guidelines for the resolution of disputes
in the workplace.It is crucial for both employers and employees
to have a good understanding of Nigerian labour law as it helps
to prevent misunderstandings and conflicts in the workplace.
Employers who are aware of their obligations under the law are
better equipped to provide a safe and fair working environment
for their employees. On the other hand, employees who
understand their rights can advocate for themselves and protect
their interests in the workplace.

 LAND USE ACT, CAP 202, LFN 2004

The Land Use Act is one of the Environmental Laws in Nigeria that is
aimed at providing measures for the ease of availability of land for
commercial, agricultural and other developmental purposes.

As a result of this, the Act places the ownership, management and

control of land in each state of the federation in the Governor.

The land is therefore allocated with his authority for commercial,

agricultural and other purpose.
 Key Environmental Developments Shaping a Sustainable
Future in Nigeria

One of the roles of law in society is to engage in social engineering to establish a

strong and stable environment that supports thriving economic activities over time.
Environmental law is crucial in Nigeria as it tackles the distinctive ecological issues
faced by the nation, and promotes a sustainable future. Stay informed about the
latest developments in Nigerian environmental law to understand its impact on
various sectors.

The above picture shows the menace of Air pollution in Nigeria.

Here are five critical environmental law developments that are driving positive
change in Nigeria:

1. Strengthening Environmental Regulations for the Oil and Gas Industry:

In line with the constitutional powers of the National Assembly to make laws
for the good governance of the Nigerian state, the Petroleum Industry Act
(PIA) was enacted in 2021 to regulate the oil and gas industry activities and
ensure environmental protection. It repealed the Petroleum Act 2004 and
established new regulatory frameworks to regulate petroleum industry
operations upstream, midstream, and downstream. The PIA in section 102
provides strict environmental management that requires lease or license
 holders engaging in upstream and downstream petroleum operations to
submit for approval, an environmental management plan in respect of projects
requiring Environmental Impact Assessment (EIA) to the Nigerian Upstream
Petroleum Regulatory Commission (NUPRC) or Nigerian Midstream and
Downstream Regulatory Authority (NMDRA). It also makes it mandatory under
section 103(1) for a licensee or lessee to pay a prescribed financial
contribution to an environmental remediation fund for the rehabilitation or
management of negative impacts before such lease or license will be granted.
The PIA makes it an offence to flare gas, except in certain circumstances. It
also makes the installation of metering equipment mandatory in every facility
from which natural gas may be flared before the commencement of petroleum
production. Failure to adhere to the obligations makes such licensee or lessee
liable to penalties as the NUPRC or NMDPRA may prescribe under a
regulation. The oil and gas industry is the mainstay of the Nigerian economy
and the importance of the implementation of this timely legislation can not be
overemphasized.

2. Promoting Renewable Energy and Clean Technology: Promoting

renewable energy and clean technology in Nigeria is crucial for addressing the
country's energy needs, reducing greenhouse gas emissions, and promoting
sustainable development. Nigeria has abundant renewable energy resources
such as solar, wind, hydro, and biomass, which, if harnessed effectively, can
contribute significantly to its energy mix. Here are some of the laws and legal
frameworks:The National Renewable Energy and Energy Efficiency Policy
(NREEEP): provides a framework for the promotion and development of
renewable energy and energy efficiency in Nigeria. It sets targets for
increasing the share of renewable energy in the energy mix and outlines
strategies for achieving these targets. The Nigerian Electricity Regulatory
Commission (NERC) Regulations and Guidelines is the regulatory body for the
electricity sector in Nigeria and has issued various regulations and guidelines
related to renewable energy. These include regulations for grid-connected
renewable energy projects and guidelines for the procurement of renewable
energy.The Nigerian Energy Support Programme (NESP) is a bilateral
partnership between the Nigerian and German governments that supports the
implementation of the Nigerian Renewable Energy and Energy Efficiency
Policy. It provides technical assistance and capacity building to promote
renewable energy and energy efficiency. The Renewable Electricity Action
Program (REAP) is an initiative aimed at promoting renewable electricity
generation in Nigeria. It focuses on developing renewable energy projects and
creating an enabling environment for investment in the renewable energy
sector. The National Policy on Climate Change outlines Nigeria's approach to
addressing climate change issues, including promoting clean and renewable
energy sources to reduce greenhouse gas emissions.
3. Waste Management and Circular Economy Initiatives: Nigeria has enacted
and implemented some laws and initiatives towards tapping into the many
benefits of the circular economy on waste management. Several organizations
and private initiatives in Nigeria have been actively engaged in waste
collection and recycling programs. They work to collect recyclable materials
such as plastics, paper, glass, and metals for processing and reuse.
Numerous communities across Nigeria have also initiated recycling projects at
the local level. These projects often involve waste sorting, recycling, and using
recycled materials for various purposes within the community. Initiatives are
being developed to convert waste into energy through technologies like
anaerobic digestion, waste incineration, and biogas production. These projects
aim to reduce the burden on landfills and provide a sustainable energy source.
The National Environmental Standards and Regulations Enforcement Agency
(NESREA) Act is responsible for enforcing environmental laws, regulations,
and standards in Nigeria. It plays a significant role in waste management and
environmental protection. The National Policy on Solid Waste Management
provides a framework for the effective management of solid waste in Nigeria,
including waste collection, disposal, and recycling initiatives. This policy
specifically encourages the circular economy. The Extended Producer
Responsibility (EPR) Framework holds producers responsible for the end-of-
life disposal of their products. It aims to promote recycling and reduce waste.
The Plastic Waste Management Policy was made to manage plastic waste
effectively, with a focus on reducing plastic pollution and promoting recycling.
The National Strategy for the Implementation of the 3Rs (Reduce, Reuse,
Recycle) Approach in Waste Management emphasizes minimizing waste
generation by reducing, reusing, and recycling materials and it is a
fundamental aspect of circular economy initiatives. The Hazardous Waste
(Control and Management) Regulations outline measures for the control and
management of hazardous waste to protect human health and the
environment. The Waste to Wealth Initiative encourages the transformation of
waste materials into valuable products, promoting a circular economy by
reducing waste and maximizing resource utilization.

4. Conservation and Biodiversity Protection: Nigeria, a country of rich

biodiversity and ecological importance, is home to diverse ecosystems, wildlife
species, and natural resources. The nation recognizes the significance of
conserving its biodiversity for sustainable development and environmental
balance. To achieve this, Nigeria has established a legal framework
encompassing laws and regulations that promote conservation and protect its
valuable biodiversity. NESREA was established to enforce compliance with
environmental laws, regulations, and standards in Nigeria. It plays a crucial
role in ensuring that activities impacting biodiversity comply with relevant
environmental regulations. Laws like the National Parks Service Act and the
Wildlife Conservation and Management Act provide a legal framework for the
conservation and protection of wildlife in Nigeria. They establish protected
areas and regulate activities related to hunting, poaching, and wildlife trade.
 Nigeria's maritime and coastal environments are protected under laws like the
Coastal and Inland Shipping (Cabotage) Act and the Nigerian Oil Spill
Detection and Response Agency (NOSDRA) Act. These laws aim to conserve
marine biodiversity and protect coastal areas from pollution and degradation.

5. Environmental Impact Assessment and Sustainable Development: The

Environmental Impact Assessment Act (1992) of Nigeria establishes the legal
basis for conducting environmental impact assessments for projects. Its
primary objective is to promote sustainable development by ensuring that
proposed projects are environmentally sound, economically viable, and
socially beneficial. The Act mandates the preparation of an environmental
impact statement (EIS) for designated projects, which is subject to review and
approval by the relevant authorities.

Nigeria's environmental law landscape is evolving to address the country's

environmental challenges and drive sustainable practices across sectors. by
staying informed about these key developments, we can actively contribute to
environmental conservation, advocate for stronger regulations, and promote
sustainable practices in our industries and communities.
CONCLUSION:

Nigeria has a lot of scope when it comes to development as it has

natural resources, Diverse workforce and culture. But there are
challenges it has to overcome such as Political stabiltity and insecurity,
low economic growth, faltering Naira currency and Criminal activities.
The Nigerian Governments should commit themselves to welfare
otherwise it would be to difficult for Nigeria to develop.

References :

1) www.Worldbank.org
2) www.opec.org
3) www.kpakpakpa.com
4) www.imf.com
5) www.lawnigeria.com
6) www.nigerianstat.ng
7) www.okayafrica.com
8) www.infoguidenigeria.com