Major external environmental factors to consider while investing in Nigeria
Nigeria is Africa’s most populous country and also among the largest population countries in the world. Nigeria is member of the Commonwealth of Nations. Nigeria’s economy is one of the fast growing economy in Africa and the world and predictions shows it will continue to grow into the future. It is the largest exporter of oil in Africa and the continent’s largest economy.
Nigeria is a country with good people of diverse of culture, language and religion. Nigeria people are very accommodating and very nice. Therefore if you consider Nigeria as your dream place for your business investment you wouldn’t be getting things wrong. This is because there’s lot of opportunities in varied form in Nigeria such as natural resources and raw material. In spite of all these amazing thing about Nigeria, there are major external environmental factors to consider while investing in Nigeria.
The external environmental factors refer to those factors over which the entrepreneur has no control but have tremendous impact on the survival of the business; this is why it is also called the uncontrollable environment of the business. Within the external environment of the business are all the factors which provide opportunities or pose threats to it. Opportunities are favourable conditions in the business’ environment, which enable it to consolidate and strengthen its position. Below are the Major external environmental factors to consider while investing in Nigeria. Whether you are an entrepreneur or investor this factors is essential to take note of.
Major external environmental factors to consider while investing in Nigeria:
1 Demographic factors: These include the market i.e. consumer populations. It deals with their composition in terms of sex, age, income, marital status, educational levels etc.
2 Political/Legal Factors: this is made up of laws, government agencies and pressure groups that affect the business.
3 Technological Factors: This deals with knowledge of how to accomplish tasks and goals, and innovations.
4 Natural Environment: This deals with all the gifts of nature or natural resources of the nation that serve as input for the business.
5 Socio-Cultural Factors: These deal with the people, their norms, values and beliefs as they affect the business.
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