Business News direct from Nigeria!
What will be the governments way forward for business in Nigeria?
With a new government in office and thus fresh hopes and aspirations what should Nigerias new Business landscape now look like? Nigeria’s Business Directory.com has taken the lead in recent times to try and divert the negative views, images and stereo-types about Nigerian Business. One of our past articles asked can ‘one really make money from business in Nigeria?’ The answer to the latter is still yes but the fear is still how much red tape will be involved, will corruption mar a positive initiative and finally will the infrastructure such as trained staff, power, government assistance and security be in place. In light of the above business concerns Nigerias Business Directory wishes to welcome the new change in Nigeria but also we wish to get down to the Business of the economy by ensuring the business community possesses a strong say in essential matters that affect business.
The Oil Business Nigeria’s Blessing & Dependency
Can Africa’s largest economy sink to dangerous lows following the recent rapid drop in the World Oil prices?
Nigeria is a an Oil rich nation, a situation which has propelled it to the top of Africa’s rapidly growing economies as a rising star, but almost every part of this successful structure can be attributed to the Oil businesses. The current situation is now showing how this ‘Black gold’ can also become Nigeria’s worst nightmare. Celebrated by many yet shared by few, Oil is a serious issue.
Few know that 15 years ago Nigeria was selling Oil at a low $10 per barrel which had risen to a high of $120 at its height. This Oil source has sustained Nigeria’s economy by contributing an astounding 70% of all revenue that Nigeria generates.
The latter situation has to change, because the Oil fuels greed, dependency and mismanagement.
Oil and Gas: Great Opportunities in Oil and Petrol are still open
Nigeria has expanded its list of fuel suppliers providing the opportunity for several entrepreneurs to enter the market place at various levels e.g. shipping, piping, refined oil, IT and security etc.
Africa's most populous country Nigeria who are also Africas largest exporter of Crude (The Bonny light type), relies on fuel imports because it lacks the capacity to refine its own crude oil. The country relies on fuel so much that it provides a subsidy to make fuel ceaper for the indeginous people's.
Nigeria's gasoline subsidy soaked up 1 trillion naira ($6.2 billion) last year, equivalent to 20 percent of the federal budget and exceeding a budgeted 888 billion naira. The list of gasoline importers compiled by Reuters using information from five sources showed around 3.4 million tonnes was allocated for the third quarter to more than 40 companies, expanded from 30 last year in 2012.
The list of named as suppliers includes; Nepal, Fresh Synergy, Ibafon, Techno Masters, Matrix and MRS. Former main suppliers are named as Vitol , Mercuria and Trafigura which have historically played an important role in supplying fuels to Nigeria but have been replaced by local firms. Nigeria has already spent $1.2 billion on subsidy payments this year 2013 and economists say any sign of a spike in subsidy costs could risk Africa's second largest debt issuer spending oil savings or widening its budget deficit.
Industry sources suggested the current change in policy to use local firms and increase the number of importers may have been partly an attempt to stave off future supply problems, as some importers struggled to get bank loans/credit. The supply list showed Nigerian energy firm Oando PLC won the biggest allocation of 135,000 tonnes while Total and Folawiyo, in which global commodity merchant Glencore is a minority stakeholder, won 90,000 tonnes each. -Reuters
Can you really make money in Nigeria?
The question still remains can ‘one’ initiate business in Nigeria successfully. To really put this into context the initial facts must be stated; despite the wildly dispensed rumours and fear mongering Nigeria possesses one of the fastest developing economies in the developing world.