- Download our Moving to Nigeria Guide (PDF)
If you’re looking to do business in Nigeria, one of Africa’s largest economies and an oil-rich powerhouse, you’ll face some unique challenges. Especially if it’s your first time doing business on the African continent, you’ll need to prepare yourself.
Despite the country’s massive strides in the corporate world, Nigeria still contends with systemic corruption and inadequate infrastructure – two major factors that can complicate the business environment.
However, it’s essential to recognise that plenty of business gets done here. Negative perceptions don’t always reflect the reality, so keeping an open mind is key.
To steer clear of potential issues, if you’re relocating to and working in the Giant of Africa, take time to familiarise yourself with key aspects of doing business in Nigeria.
Fast facts
Business language
English is the primary language of business in Nigeria, thanks to its official status. While English proficiency is widespread, especially in urban areas like Lagos and Abuja, you might find that in more rural or northern regions, local languages such as Hausa, Yoruba, and Igbo dominate in everyday communication. Major companies increasingly blend these indigenous languages into their local marketing to connect better with the population.
Hours of business
Standard business hours typically run from 8am to 5pm, Monday to Friday. However, since the pandemic, many companies have adopted more flexible working arrangements. In bustling cities like Lagos, you’ll often find businesses open later, reflecting the city’s busy economy. Be aware that businesses in the North may close earlier for prayer times, and some adjust their hours during Ramadan.
Business dress
The standard for business attire in Nigeria remains smart and professional, with dark colours favoured in traditional corporate settings. However, recent years have seen a shift toward more casual, yet polished, looks, especially in tech hubs. You might notice a mix of traditional fabrics like Ankara paired with modern styles, reflecting the fusion of local culture with global trends.
Greeting
In Nigeria, greetings are warm and extended, particularly between men, where handshakes linger. If you’re introduced to a woman, especially in Muslim areas, a slight nod of the head may be more appropriate, as many Muslim men won’t shake hands with women. Understanding these nuances is key to making a respectful first impression.
Gifts
Gift-giving practices vary widely across Nigeria. While it’s not a rigid expectation in business settings, reciprocating a gift is important if you receive one. Always use your right hand when exchanging gifts or shaking hands. More and more businesses are adopting policies to regulate gift-giving, ensuring these gestures stay within ethical boundaries.
Gender equality
While Nigeria remains a patriarchal society, recent years have seen progress in gender equality, especially in education, healthcare, and entrepreneurial ventures. Women are increasingly taking up senior positions in both the corporate and political arenas. That said, traditional gender roles still hold sway in many aspects of society, but the tide is turning. Women-owned businesses are on the rise, although challenges remain in access to financing and breaking into male-dominated industries.
Business culture in Nigeria
When you arrive in Nigeria, you may encounter some difficulty adjusting to local culture, and the workplace will likely be no exception. Business culture in Nigeria is shaped by a range of factors. With over 250 ethnic groups and numerous foreign multinationals operating here, it’s vital that you remain flexible and open to adapting to local nuances.
Business relationships in Nigeria
Building strong business relationships is the backbone of successful ventures in Nigeria. Patience is essential. Don’t expect to jump straight into formal negotiations – trust must first be established. This is why business meetings often blend social interaction with work discussions, helping to develop those essential personal connections that pave the way for smoother dealings later on.
With the rise of remote work and digital communication, business relationships in Nigeria have also evolved. Video calls and messaging platforms are becoming more common, especially with international stakeholders. Yet, despite these advances, personal trust still plays a significant role, and whenever possible, in-person meetings are preferred to deepen professional ties.
Management style in Nigeria
Traditionally, management in Nigeria follows a hierarchical structure with a clear chain of command. The boss, usually male and often from an older generation, expects respect and rarely faces public criticism. Leadership tends to be directive, and employees are expected to follow instructions to the letter.
However, this model is beginning to shift, particularly among younger companies and startups. More collaborative, inclusive management styles are emerging, inspired by global trends. In these more modern setups, open communication and teamwork are highly valued, allowing for more input from employees and fostering innovation. Multinational companies also tend to adopt less rigid, more adaptable management structures to attract top talent.
Attitude to foreigners in Nigeria
Nigerians are known for their friendliness and genuine hospitality towards foreigners. Make an effort to engage with locals, and you’ll typically find that this warmth is returned in kind. Despite this, be cautious in business dealings. While there is respect for foreign expertise, local nationalism is rising, with a growing emphasis on supporting home-grown businesses.
Foreign investors may face challenges when it comes to securing deals, as Nigerian officials are often more inclined to give business to local companies. Patience and perseverance are key, as is demonstrating a clear understanding of and respect for local business practices.
Bribery and corruption in Nigeria
Bribery and corruption remain significant challenges in Nigeria, although recent efforts to address these issues are showing promise. Public attitudes towards bribery are shifting, with more people refusing to pay bribes and an increase in reports of corruption. Government initiatives to combat corruption, such as the use of technology to reduce direct interactions with officials, are also gaining traction.
Despite these improvements, corruption remains deeply entrenched in certain sectors, and you will likely encounter it at some point. Establishing connections with influential local figures can still be key to success, though more transparent and ethical approaches are being encouraged. It’s necessary to navigate this aspect of doing business with care, ensuring that you stay within the bounds of local law and ethical standards.
Dos and don’ts of doing business in Nigeria
- Do build relationships. Personal connections are essential in Nigeria, so invest time in getting to know your business partners before moving into formal negotiations.
- Do be patient. Meetings might not always start on time, and decisions can take longer than expected. Flexibility will help you adapt to the pace of business.
- Do respect hierarchy. Always acknowledge seniority and use formal titles when addressing others. Nigerians value respect and hierarchy in business settings.
- Do engage in small talk. Before discussing business, take time for casual conversation. It helps establish rapport and builds a foundation of trust.
- Don’t criticise in public. Avoid correcting or criticising colleagues in front of others. Always address issues privately to maintain respect and avoid embarrassment.
- Don’t rush negotiations. Business discussions in Nigeria can take time, so expect multiple rounds of talks before reaching an agreement.
- Don’t use your left hand. In Nigerian culture, using the left hand for greetings or giving items is considered disrespectful. Always use your right hand.
- Don’t assume all Nigerians share the same cultural practices. Nigeria is incredibly diverse, and customs can vary greatly between regions and ethnic groups.
What do expats say about Nigeria's business environment?
"My working experience was within a Nigerian organisation which mainly employed Nigerian people, with only a few expats. Nigerian’s greet each very warmly every morning, making enquiries in to the state of a person's health and how they spent their evening."
Read more on Nigeria's work culture in our interview with Celia.
"Doing business is by networking, so you network when you are doing business. Phones are always going off... The line between business and pleasure is blurred."
Get more insight from this interview with Ann.
Further reading
►Learn more about business practices in this African country in Working in Nigeria
►Read our Expat Salary Guide to Nigeria for more on what to expect to earn
Are you an expat living in Nigeria?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Nigeria. Please contact us if you'd like to contribute.
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