Expats looking to do business in Nigeria – and especially those who've never done business on the African continent before – will certainly have to prepare themselves to face unique challenges.

Although great strides have been made within the corporate world in Nigeria – Africa's most populous nation, and one of the most oil-rich nations on earth – the country still suffers from massive corruption and a debilitating lack of infrastructure; two factors which can make doing business difficult, to say the least.

However, it is important to remind expats that a tremendous amount of business does get done in Nigeria, one of the world's largest emerging markets – and that jaded, or pessimistic views about the country are not always well deserved.

Nigeria is ranked 137th (out of 183 countries) in the World Bank's "Ease of Doing Business" rankings, doing better in the criteria of 'protecting investors' (where it's ranked 59th) and 'getting credit' (89th), than others.

Bribery and Corruption

Perhaps more than any other nation in Africa, Nigeria has a horrendous reputation for bribery and corruption. These are systemic problems, observable from the highest levels of government to the lowest level of street sales. It is unfortunate, though unavoidable, that you will experience this corruption in some form or another while living and working in Nigeria.

The following points are given in order to help expats know what to expect from, and perhaps how to react to, the corrosive presence of bribery and corruption in Nigeria:

• In order to export any foreign products to Nigeria, you will need to form 'connections' with ministers and governors. It is fair to describe these officials as 'gate-keepers', who control the flow of money and goods across Nigeria's borders.
• A very wide margin needs to be written into all budgets for bribes, given not just to legislators and decision-makers, but also to their assistants, and often security guards and even receptionists, as well.
• Relationships with governors have the potential to be the most rotten – as these individuals stand to profit from the import and export of all goods to and from their region. Often, promising expat export businesses have been crippled by artificial 'problems' and 'delays' – these are, unfortunately, more often than not falsities, designed to get you to hand over more money in the hopes of 'smoothing things along'.
• Be wary of big, empty promises when tabling an offer – it is quite unusual for Nigerian officials to give their internal business to non-Nigerian companies, and if they can avoid doing so, yet still find a way to keep your tender, they probably will.

Business Culture in Nigeria

Business culture in Nigeria is subject to a number of variable forces, over 250 different ethnic groups co-exist in the country and a multitude of foreign-owned multinationals have come to roost. In consequence, providing an authoritative summation of consistent practices and customs would be somewhat misleading. What follows, instead, is a brief guide to some features of corporate culture in Nigeria that might be unfamiliar, or unsettling, to western employees.

Firstly, the management style typically found in Nigeria is extremely hierarchical. The boss – invariably male, and always of an older generation – will expect and will receive respect from all those working beneath him, and will never be publicly criticised. However, this does not necessarily mean that all decisions are made from the top down – business relationships are extremely important in Nigeria, and often, compromises can be reached.

In general, Nigerian business leaders will lead strongly – giving their employees instructions that are expected to be followed closely. Teamwork and the ability to work together toward clearly defined goals are considered more valuable assets in the Nigerian workplace than independent thinking, or individualistic efforts.

Business etiquette in Nigeria demands that expats remain flexible, and willing to improvise. Since it is vital to cement a working business relationship between yourself and your associates, be prepared to be patient, and to wait for this trust to develop, before diving into the nuts and bolts of business discussions.

For this reason, business meetings in Nigeria are very social occasions – providing the framework for the creation of solid interpersonal connections.