FACULTAD DE ADMINISTRACIÓN Y NEGOCIOS INTERNACIONALES

NIGERIA

COURSE : International Management

TEACHER : Valverde O´Hara, Nataly Vanessa

MEMBERS :

Collas Arenas, Tatiana

Mendoza Bonifacio, Helen

Torres Granados, María

2019

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 Table Of Contents

1. MACRO ANALYSIS: ......................................................................................................... 5

1.1 POLITICAL FACTORS ........................................................................................ 5
1.2 ECONÓMIC FACTORS ........................................................................................ 7
1.3 SOCIAL FACTORS ............................................................................................... 9
1.4 DEMOGRAFIC FACTORS................................................................................. 11
1.5 TECHNOLIGICAL FACTORS .......................................................................... 12
1.6 ENVIROMENTAL FACTORS ........................................................................... 13
BIBLIOGRAPHY ....................................................................................................................... 14

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INDEX OF FIGURES

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 TABLE INDEX

Table 1: Main Indicators of Nigeria…………………………………………….……………..8

Table 2: Evolution: PBI Per Capita Nigeria………………………………….………...……..11

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1. MACRO ANALYSIS:

The fishing industry has as main functions; nutritional and social. The contribution that
this sector contributes is at a level; food and nutrition, safety, employment, etc. Above
all, to the inhabitants of the coast, who are the poorest and most vulnerable. The average
represented by fish and its derivatives are 18% of animal protein consumption.

As a result of population growth and per capita income, the increase in demand is
expected to be 30% by 2030. The poorest countries would suffer if the current trend is
not properly managed. Climate change affects sea temperatures causing the reduction in
fish sizes and / or the migration of fish to cold waters (Food and Agriculture
Organization of the United Nations, 2019).

The contribution of fisheries and aquaculture to the African economy represents 1.3%
of total GDP in 2011, equivalent to $ 24 billion. Providing employment to more than 12
million people, of which 58% is generated by fishing while 42% is generated by
aquaculture. It should be noted that of these 12 million, 59% are women who perform
the work of productive processing and fishing almost all are all men. Through a
program created by the bank in 2005, they facilitate and promote the contribution of the
fishing and aquaculture industry to food security, women's empowerment, sustainable
growth and poverty reduction (Word Bank, 2019).

1.1 POLITICAL FACTORS

He has a federal policy, and he has been making several changes in his government. In
February of this year elections were held in Nigeria. The political parties are the Popular
Democratic Party (PDP) and the main opposition party is the Party of All Peoples of
Nigeria (ANPP), (Santander, 2018).

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Within its constitution is established in Article 20 the protection of natural resources
and wildlife in Nigeria.

Article 44 refers to the fact that all territory and extracted mineral remains in the hands
of the National Assembly. (Federal Envionmental Protection Agency Act, 2019)

Decree 58 of 1988 was issued for the creation of the Federal Environmental Protection
Agency, where regulations and regulations are set out to counteract exploitation and
environmental damage.

Nigeria has Legislation 25 of 2007 creates the Agency of National Norms and
Regulations on the environment, has an environmental monitoring program (Federal
Envionmental Protection Agency Act, 2019)

The regulation of regulation of Taxes on Companies is Law 28 of 1979, modified by the

Law of the Federation of Nigeria of the year 2004.

Taxes

Resident Societies: General tax rate is 30%, Capital gain is 10%, Dividends 10%.

Non-Resident Company: Dividends 10%, Royalties 10%, Interest 10% and Capital Gain
is 0%.

Taxes on value added: General taxation 5%, reduced rates 0%, increased rates 0%
(ICEX, 2019).

Nigeria has subscribed to the WIPO Treaty on Copyright, the WIPO Performances and
Phonograms Treaty, the Marrakesh Treaty and the Beijing Treaty.

Consumer protection policies are aimed at reviewing commercial economic activities, in

order to identify an anti-competitive attitude that goes against Nigerian consumer rights
and restricts access to other companies. Protect consumers by resolving complaints and
disputes, as they apply sanctions when necessary. They request a standard of products
according to consumer requests, requiring quality and safety (ICEX, 2019).

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The employment protection laws consider a contract necessary, as minimum salary
establishes 18,000 naira (50 US dollars) being denounced by the low level, the
schedules are fixed as defined in the contract, if the employee goes through an illness it
has 12 days In the year to be absent and to receive their salary, in case of maternity, 12
weeks of leave is provided, there is protection against discrimination. The jobs in
Nigeria are under contract and under the agreement of both parties, before any injustice
can be filed lawsuits (Lexartifex Llp, 2019).

The Nigerian government is presidential, with an organizational model of the United

States, that is to say it possesses: The executive power composed by the president and a
federal executive council, Legislative conformed by senate and the chamber of
representatives and the Judicial Power composed by Federal Courts and Supreme Court
(Nigeria Galleria, 2019)

The competition law is based on the care of negotiations under the table, price
manipulation, fraudulent tenders and among other competitive constraints. (ICEX,
2019).

The government is going through a change of presidency, but they are in search of
restructuring and political and economic stability. The different complications in
different sectors have better projection and control. The situation until 2020 is
considered unstable due to internal conflicts, whether due to religion, political
differences, social crimes, violence and forces (Estudios Africanos, 2019).

It is a highly violent country, the northeastern part of the country has terrorist events, it
has high-level red areas, it has registered events of kidnappings to entrepreneurs and
scams (Foreign, 2019).

1.2 ECONÓMIC FACTORS

According to the World Bank for 2018 there is a downward forecast of 2.1% to a
percentage of 1.9% due to the fall of the main source of income, which is oil, inflation

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and the level of unemployment (2 of every 3 unemployed people are less than 34 years
old) (Datos Macro, 2018). It is even considered that the population of Nigeria lives with
1 dollar a day, according to data registered by UNICEF.

It is currently considered one of the 10 countries with fewer economic resources.

Inclusions have even been registered of minors, due sometimes to the level of poverty
through which families pass, which are often despised by society.

Table 1:

Main Indicators of Nigeria

Leading indicators 2016 2017 2018 (e) 2019 (e) 2020 (e)

PIB (billions of dollars) 405.44 376.36 397.47 447.01 504.57

PIB ( Constant prices,% annual -1.6 0.8 1.9 2.3 2.5

change)
PIB per capita (USD) 2,208 e 1,995 2,050 2,244 2,465

Gross debt of the general 19.6 21.8 24.8 26.9 28.1

government (en% del PIB)

Rate of inflation (%) 15.7 16.5 12.4 13.5 13.0

Unemployment rate (% 13.4 16.5 0.0 0.0 0.0

of the labor force)
Current account (billions of 2.71 10.38 8.12 4.47 3.73
dollars)
Current account (en% del PIB) 0.7 2.8 2.0 1.0 0.7

Fuente: FMI - World Economic Outlook Database, octubre de 2018.

Note: (e) Estimated data

The PBI of Nigeria had a period of decline caused by political problems and social
clashes, the change of economic policies started since 2016, it is expected to recover in

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2019. The participation of the population in the Nigerian economy decreased due to that
the unemployment level registered the growth in 2017, the gross debt of the government
reflects an increase, because they have invested in the economic policies with projection
of recovery under the commitment of their industries and the rulers.

1.3 SOCIAL FACTORS

There are several rules of conduct in this nation, but as far as business labels are
concerned, it tends to be the same everywhere in Nigeria. It is common to establish a
personal relationship with colleagues, making the first 2 hours are dedicated to meet and
discuss important topics for them as; family and health Do not be surprised if in a
private meeting you tend to be interrupted by phone calls, emails, door calls. The
Nigerian's characteristic is to work as a team. Wait for them to invite you to call them
your name otherwise call them as; Sir, madam as the case may be and your last name, as
well as professional qualifications, Nigerians often insist on being called by their full
professional title as "engineer" (InterNations Connecting Global minds, 2019).

The greeting in Nigeria; Take the time to make jokes or ask about your well-being just
by the way, hand-waving is common but when you are going to greet a woman expect
her to reach out first. In a group meeting, greeting each one individually and in order of
seniority and / or hierarchically organizationally and inclining the head when shaking
hands is also a symbol of respect. Avoid eye contact with superiors or seniors,
Nigerians usually do not make eye contact and insisting on eye contact can be taken as
rude or even aggression (InterNations Connecting Global minds, 2019).

The business cards; receive with the right hand never with the left, there is no specific
time to exchange them, take the time to examine them, include academic titles and
never write over the cards, if any information has changed, print new cards. Meetings It
is advisable to schedule meetings in advance and confirm the meeting a day before, due
to erratic traffic it is difficult to arrive early, but they value punctuality (InterNations
Connecting Global minds, 2019).

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Nigerian food; Nigeria has as much variety of people as there are cultures, each area has
its favorite dishes according to its tradition, culture and religion. Its staple foods are
rice, millet and lentils. Fruits such as: orange, melons, limes, mangoes, bananas and
pineapples. The culture of fish consumption is in Nigerian stew based on fish, pepper,
onion and spices (Food and Agriculture Organization of the United Nations, 2019).

Income distribution
10% lower: 1.8%.
10% higher: 38.2% (2010 est.)
48.8 (2013) / 50.6 (1997)

Demography, population growth rate, age distribution

Population 203,452,505 to July 2018 approximately.
It is projected that by 2050 the population will grow to 392 million, growth rate 2.54%.
Ages: 0-14 years: 42.45% (men 44,087,799 / woman 42,278,742).
15-24 years: 19.81% (men 20,452,045 / woman 19,861,371).
25-54 years: 30.44% (men 31,031,253 / woman 30,893,168).
55-64 years: 4.04% (male 4,017,658 / female 4,197,739).
65 years and over: 3.26% (men 3,138,206 / woman 3,494,524).

Social and labor mobility

-0.2 migrant (s) / 1,000 inhabitants (2018 est.)

Changes in lifestyle
Income inequality, last place in the ranking to reduce inequality in 152 countries.

Entrepreneurship, attitude towards work, career and rest

Public debt 21.8% of PBI (2017 est.) 19.6% of GDP (2016 est.). 84,463 million euros in
2017.
Rank 146 in the "Doing business" ranking. Opening of a business placed 120 in 2019

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Education
Total: 9 years / man: 9 years / woman: 8 years (2011)

Fashion
Mixed Traditional-tribal, vigorous and strong colors.

Social security and health awareness

Health: 0.47% of PBI (2016)

Quality of life
Position 157 in the IDH ranking to 2017

1.4 DEMOGRAFIC FACTORS

With its capital Abuja has a population of more than 190 billion inhabitants, it is
considered one of the most populated countries in the world with 207 people per km2.
The Human Development Index for Nigerians indicates that the standard of living is
quite low, a good indicator of this is the per capita GDP that was obtained in 2018 with
1.76% (Datos Macro, 2019).

Table 2:

Evolution: PBI Per Capita Nigeria

Source: Datos Macro, 2019

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The level of illiteracy and education in Nigeria is much higher in the case of women
with 40% compared to that of men, which is 24% of the population. This could be due
to the fact that when girls reach the age of majority, they lose the privilege of continuing
their studies, and remain in their homes doing housework.

1.5 TECHNOLIGICAL FACTORS

The development of fisheries has 3 main objectives; improvement of production, raise

social status, increase consumption. Nigerian fishing is done by hand. They have
insufficient and expensive fishing inputs, changing nature reduces the productivity of
fishing, shortage of professional fishing labor, potential investors do not usually
consider the possibility of investing due to the problems in the acquisition of land, the
return from the investment (Food and Agriculture Organization of the United Nations,
2019).

Nigeria has 82% in the Information and Communication Technologies (TIC) market of
telecommunications subscribers in South Africa.

Government spending on research is current and capital (both public and private), was
0.22% of PBI in 2007.

The Federal Government of Nigeria considers the Information and Communication

Technologies (TIC), as the one that provides the aid, for the development of other
crucial sectors, such as agriculture and manufacturing

Creation of the National Space Research and Development Agency, which is twenty
years old and has already launched six space satellites.

Internet customers in Nigeria increased marginally to 104 million in July 2018, the
Nigerian Communications Commission said.

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 1.6 ENVIROMENTAL FACTORS

The Sokoto and Rima rivers are filled with rainwater in the rainy seasons and dry in dry
seasons. These rivers are narrow and generally have a steep slope of water, and floods
on the banks are common. In seasons of little water they are isolated by channels. The
ponds and pools as a result of surface reduction and increased water during the dry
season increase the concentration of fish for easy collection during that period. The
income levels of those engaged in fishing at the time of deficient ranges from $ 1 to $ 2
per day and peak season ranges from $ 4 to $ 10 per day (Food and Agriculture
Organization of the United Nations, 2019).

The land área below is the 5 meters is the porcentaje of the total área, the elevation is 5
meters or less. In this country have the droughts, floods and extreme temperatures in th
average anual percentage and affect to the population. There episodes of extreme
temperaturas. . A drought can be for the long time and cause losses to agricultura,
affects inland navigation and hydroelectric plants and causes lack of drinking wáter and
famine. A flood is significant increase in wáter level in a stream, lake, reservoir, or
coastal regian. Together with frost, it can cause damage to agriculture, infrastructure
and property. A heat wave is a prolonged period of excessively warm and sometimes
also humid weather, in relation to the normal climate patterns of a given region.
Affected population is the number of people injured, who were left homeless or who
require immediate assistance during an emergency period due to a natural disaster. It
can also include displaced or evacuated people. The average percentage of the affected
population is calculated by dividing the sum of the total number of people affected in
the period recorded by the sum of the annual population figures for the period indicated
( Indexmundi, 2009).

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 BIBLIOGRAPHY

Datos Macro (2019): Nigeria: Economía y demografía. Recuperado el 16/04/2019 de

https://datosmacro.expansion.com/paises/nigeria

El día (2018). Nigeria, a la vanguardia del desarrollo científico en África. Recuperado de:
https://www.eldia.es/economia/2018/11/27/nigeria-vanguardia-desarrollo-cientifico-
africa/931703.html

Export (2019). Nigeria - Tecnologías de la información y las comunicaciones. Recuperado de:

https://www.export.gov/article?id=Nigeria-Information-and-Communications-Technology

Food and Agriculture Organization of the United Nations (2019). El estado de la pesca mundial y
acuicultura: Encuentro con los sostenibles desarrollos de metas. Recuperado de:
http://www.fao.org/3/i9540en/i9540en.pdf

Food and Agriculture Organization of the United Nations (2019). Recursos Pesqueros de las aguas
interiores nigerianas. Recuperado de: http://www.fao.org/3/T1230E/T1230E06.htm

InterNations Connecting Global minds (2019). Business Etiquette in Nigeria. Recuperado de:
https://www.internations.org/nigeria-expats/guide/working-in-nigeria-15535/business-etiquette-
in-nigeria-3

Index Mundi (2017). Nigeria. Recuperado de: https://www.indexmundi.com/es/nigeria/

Santander (2018). Gobierno y Política en Nigeria. Recuperado de:

https://es.portal.santandertrade.com/analizar-mercados/nigeria/economia

The World Bank Group (2019). Gasto en investigación y desarrollo (% del PIB)- Nigeria. Recuperado
de: https://datos.bancomundial.org/indicador/GB.XPD.RSDV.GD.ZS?locations=NG

World Bank Group (2019). Doing Business 2019: Economy Profile Nigeria. Recuperado de:
http://www.doingbusiness.org/content/dam/doingBusiness/country/n/nigeria/NGA.p
df

World Bank (2019). Nigeria. Recuperado de: https://data.worldbank.org/country/nigeria

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