Question

1. Country Profile Nigeria
2. Population and demographics (ages, sex, etc.) Table or detail of the info and a small paragraph describing what is happening in the country.
3. Income per capita (most recent year)
4. Main exports and Main Imports (most recent year preferable)
5. GDP growth (%) over the past 5 years ( small explanation of what is happening in that country)
6. Incoming foreign direct investment over the past five years ($$$)
7. Key relevant issues (Politics, economics, social and trade)
8. Cultural values (Hofstede scale)
9. The country’s competitive advantage(s)
10. Future prospects (business, political movements, etc.)

Answer 1

1. Nigeria, officially known as the Federal Republic of Nigeria, is a country that is located on the western coast of Africa. The country features 36 states and its Federal Capital Territory, which is known as Abuja. The country of Nigeria features over five hundred different ethnic groups, many different languages, and declared its independence from the United Kingdom on October 1, 1960. As of 2019, the estimated population of the country is over 200.96 million, ranking 7th in the world.

2. GDP per capita in Nigeria is expected to be 2461.00 USD by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Nigeria GDP per capita is projected to trend around 2690.00 USD in 2020,

3. Exports from Nigeria rose 23.9% year-on-year to NGN 1733.1 billion in December 2018, boosted by higher sales of crude oil (22%); agricultural goods (108.9%), mostly sesamum seeds; manufactured goods (5.9%); raw material (15.5%) and energy goods (4.9%). Main export partners were: India (17.3% of total exports), Spain (12.1%), France (8.7%), South Africa (7.7%) and the US (6.5%). Considering the full year of 2018, shipments grew 40.5 percent over a year ago to NGN 19099.5 billion. Exports in Nigeria averaged 426652.32 NGN Millions from 1981 until 2018, reaching an all time high of 2648881.76 NGN Millions in December of 2011 and a record low of 322.93 NGN Millions in February of 1983.

4. Nigeria’s economy entered 2019 on a softer note, with GDP growth decelerating to 2.0% on an annual basis in the first quarter. This was below both what market analysts had expected and the fourth quarter’s 2.4% expansion, which had marked an over three-year high. The slowdown was driven by both weakening momentum in the non-oil segment of the economy and the vital oil sector contracting yet again.

Growth in the non-oil sector of the economy moderated in the first quarter, coming in at 2.5% annually (Q4: +2.7% year-on-year) and reflecting slower growth in both the industrial and services sectors. Industrial output growth practically stagnated in Q1, largely due to weaker gains in manufacturing production compared to Q4. Similarly, the services sector lost steam, with growth weighed on by softer activity in the information and communication, and trade industries. On the other hand, output in the agricultural sector picked up in Q1, buoyed by higher crop production.

Meanwhile, the all-important energy sector contracted for the fourth consecutive quarter in Q1. Activity in the oil sector fell 2.4% over the same period last year, after tumbling 1.6% in Q4 2018. This was despite oil production—which accounts for the lion’s share of the overall mining and quarrying sector output—recovering to a one-year high of 1.96 million barrels per day (mbpd) in Q1 (Q4: 1.91 mbpd) and rising global oil prices throughout the quarter.

Looking ahead, the ongoing recovery is expected to gather pace this year, supported by higher private consumption, which should be buoyed by the minimum wage hike, and healthy investment activity amid more accommodative monetary conditions and waning post-election uncertainty. The slow implementation of reforms, commodity-price volatility and potential disruptions to oil production pose key risks to the outlook.

5. Nigeria's Foreign Direct Investment (FDI) increased by 314.4 USD mn in Dec 2018, compared with an increase of 438.8 USD mn in the previous quarter. Nigeria's Foreign Direct Investment: USD mn net flows data is updated quarterly, available from Mar 2008 to Dec 2018. The data reached an all-time high of 3.1 USD bn in Dec 2012 and a record low of 314.4 USD mn in Dec 2018.

In the latest reports of Nigeria, Current Account recorded a surplus of 1.1 USD bn in Dec 2018. Nigeria's Direct Investment Abroad expanded by 345.2 USD mn in Dec 2018. Its Foreign Portfolio Investment increased by 4.2 USD bn in Jun 2018. The country's Nominal GDP was reported at 100.6 USD bn in Jun 2018.

6. Nigeria has many problems. These problems are but not limited to:

• Corruption
• Crime and terrorism, specifically Boko Haram insurgency
• Unemployment
• Education and university systems
• The environment
• Infrastructure
• Gender
• Road accident
• The economy

7. Religion

Many religions are followed in Nigeria. The constitution guarantees religious freedom. Christians predominantly live in the south of the country, whereas Muslims live predominantly in the north. Native religions in which people believe in deities, spirits and ancestor worship, are spread throughout the country. Many Muslims and Christians may also intertwine their beliefs with more unorthodox indigenous ones.

The major Christian celebrations of Christmas and Easter are recognized as national holidays. Muslims observe Ramadan, the Islamic month of fasting, and the two Eids. Working hours in the north often vary from those in the south so that Muslims do not work on their holy day, which is Friday.

National Pride

Along with South Africa, Nigeria is considered a super-power in the African continent and consequently Nigerians are generally proud of their country. It has the largest population in Africa and the land is endowed with vast quantities of natural resources. It is the sixth largest oil-producing nation and has a well-educated and industrious society. They are fond of the expression, "When Nigeria sneezes, the rest of the African nations (with the exception of South Africa) catch cold."

The Family

Extended families are still the norm and are in fact the backbone of the social system. Grandparents, cousins, aunts, uncles, sisters, brothers and in-laws all work as a unit through life.
Family relationships are guided by hierarchy and seniority. Social standing and recognition is achieved through extended families. Similarly a family's honour is influenced by the actions of its members. Individuals turn to members of the extended family for financial aid and guidance, and the family is expected to provide for the welfare of every member. Although the role of the extended family is diminishing somewhat in urban areas, there remains a strong tradition of mutual caring and responsibility among the members.

Hierarchy

Nigeria is a hierarchical society. Age and position earns, even demands, respect. Age is believed to confer wisdom so older people are granted respect. The oldest person in a group is revered and honoured. In a social situation, they are greeted and served first. In return the most senior person has the responsibility to make decisions that are in the best interest of the group.

8. Nigeria’s single biggest competitive and comparative advantage remains its population.

The median age of the population is 18 years which means that Nigeria has a strong (efficient, mobile and effective) work force. The ability to tap and utilize this advantage effectively is what has stimulated the fast development of countries like China, India, Malaysia, Indonesia and Brazil. Developed countries such as the UK, USA, Canada and Australia have an active immigration policy because due to low birth rates, the work force is in decline. A decline in the work force results in an increase in cost of labor as well as a decline in productivity as an aging work force can’t be as efficient.

9. By 2030, more than 34 million households, with about 160 million people, are likely to be earning more than $7,500 annually, making them aspiring consumers. This implies a potential rise in consumption from $388 billion annually to $1.4 trillion – a prospect that is already attracting investments by multinational consumer-goods producers and retailers.

Nigeria’s prospects are enhanced further by its strategic location, which will enable it to take advantage of booming demand across Africa and other parts of the developing world. Add to that a large and growing population and an entrepreneurial spirit, and the future looks bright.