Nigerian Market...No 4

West Africa is deplete money market due to socio-political merchants of death, in respite, it lacks cohesion and integration and such local foreign investors look else where for business opportunity. Advance decline lines are not certain in its stockmarket and the moving average is only useful with banks. But if any one is willing to admit, West Africa and not North Africa is the model in studying business cycles in Africa, especially downtowns. Some analyst have mentioned that in terms of equity ratio, North Africa is key to the continent given the issue of the currency. There is no argument there that in terms of price and profit on the short term, North Africa is a useful investment option especially Egypt. If your investor is comfortable with long term penetration, Egypt and North Africa is not the place to be, rather Nigeria and West Africa is where the big business are. North Africa is very suffocating for outsiders and wealth lie in the hands of the fewer an not the many, and for that it is difficult to maintain a market to market agenda. What happens in any part of the world cannot easily affect the business cycle in Egypt.


Cyclical downtowns are not without origin in advanced economies, and individuals in-the-business-to-know will come to accept a forecast of bust as natural consequence when certain longevity of boom is overly-enjoy. With a market like Nigeria, investors easily move their money around from their money to any part of the world. While the case is not exactly the same with third world countries, yet in each expected fall in market value and price several indications had been underway and in response to inflation, Nigeria easily provide a command signal for would be business men.


In the whole Africa, the pulse of business life is easily associated with Nigeria, and Nigeria Nigeria participation with OPEC does not endear such advantage rather her membership ensures that U.S dollars remain the order of Nigerian market, a bait for Nigerian Naira and a hedge against volatility. Better argument can in fact be made for South Africa but the size of that economy and wealth of technology means her a distant calipher for measuring business performance in Africa. In Africa, South Africa is a less than perfect model for predicting profits in venture capitalism. In South Africa, the Bond market is very useful and can be a way forward for the most part, but it cannot be relied upon since the structure for the 48 Million South Africans are mainly constructed and the South Africa is Rand baited against precious metals like Diamond and Gold, means that there is little to be done in terms of its money function and international markets. America has long removed the gold from its standard, opening all kinds of way for international businesses.


On the other hand, Nigeria is closer to the bottom with a view of the top, with easy to start leverage for small businesses and geographical width to accommodate any size of investment.
By all accounts, both technical and historical, Nigeria is necessary market prism to seer the merits and demerits of investment in Africa, and as a cipher, it could help to spot the stimulus
of a new product and public interest.

There is tendency to believe that everything Nigeria is oil and given the whole problem of political instability, it is not difficult to doubt it. Oil is a natural bait for investment but these foreign legions sometimes ignore such thing as overkill. Wherever oil drilling is a major source of income, the economy thaw. The accusation that this is deliberate cannot be made since over reaction to any form of investment is a constant dark psychology in markets with little option trade. Since oil companies bring a source of new markets to these markets, an accusation of such proportion cannot stand. However nonetheless, its no hidden knowledge that huge endeavors without repose to the general economy invite a ship of decaying companies and unemployment.

The good thing about unemployment is that it helps to foster commodity markets and salesmanship. If anyone is interested in raking into Nigeria, it will be through the avenue of supply management. For supply to mean much in a third world like Nigeria, it must be generated land and sea. Lagos is the commercial capital of the country and Kano is in the North, what could however help your business survive quickly in Nigeria has to essentially deal on cost. Effective cost management to the most significant unit of exchange, set against a very effective supply route would easily ensure a useful return for your business in a decade or less. Like any good commodity, once you start making money, you are likely to remain on profit. The size of manufacuring anything in Nigeria is not as stiff as it is currently available in many parts of the world, but the temptation to import products in the country is usually met with stiff tariff which

It will also be a good idea to seek a direct investment in the country to enable you further improve your position in the country. Nigeria might be confronting the problem of 419 or 'obtain by tricks', as such it is better to deal with smaller groups and people from the beginning, and build over time than trying to force your way into the country. Companies like Nestle might be one of the best beverage companies in the world, but they archieved that level of success gradually. When Palm Olive wanted to do the same in Nigeria, they could not easily archieve the success and nearly backed off from the country. It is wise to forego some years of profit if you are heading towards Agriculture and you should try not to place a high emphasis on overnight success. If Spices, Coffee, Ginger, is your interest in Nigeria you should look to develop business relationship with the Northern elders and theirlocal Mallams. And you need a lot of trucks and full Residency Permit.


Nigerian and West African Ginger and Coffee beans are the best in the world, I mean there other kinds of Caffenited beans in the area. Take a softly approach, and take your time as well.


For bigger coperations, the Nigerian Stockmarket is one of the best investment anyone can think of. It is not in terms of the overall performance of its finances which is largely under-developed but its ability to attract the attention of the public - local and foreign - is a big advantage. Talk about going legit! In such terms, you need to have your trade stations and work gear and stay attentive to international markets as well. Other African Stockexchanges are not a bad idea but the main event is seeking to generate money in Nigeria using the banking system. There is always a commercial paper that make life easier for foreign businesses in any country and these companies can be of the greatest use as if you definitely need to watch what is happening to the Nigeria oil and gas as domain market. If these are done, you can begin to plot your entrance into West Africa using as a background.

The following are what you as a foreigner needs to first of all do in Nigeria.

1, get a better idea of the market called Nigeria and study the country as a whole.

2, review the trade routes and transport system. While you should not worry about the trade routes at the beginning, you need to master the nature of trade inside Nigeria.

3, You should visit Nigeria at least for a while and try to feel your way in a place like PortHarcourt or Enugu before heading towards Abuja or hectic Lagos. While you are it, you should obtain all the information you need about incorporating any business of your choice in Nigeria and make sure you accomplish that during your stay.

4, Tranfering some money to Nigeria is not a bad idea, right when you've done so, you should look build your credit with any number of banks. That will look like a hard task, but with time and the reputation of your company, it is possible to attract bank credit.

5, For any third world economy, you must start from little things but when you stand, look to avoid them. It is also pointless to dwell on something that everybody wants, and avoid the mistake of cashing out or cashing in, you must begin with something and try to build you credit with any company over there. The rest comes naturally.

People who get dupped in Nigeria are rich people who want break in bad and cash out bad. They might make it, but sometimes they end up falling into the wrong hands. Asset pricing and Risk management cannot apply in that whole attitude of 'breaking in bad' in Nigeria. Nigeria is still growing and will only approach saturation in a century or so.