The Federal Republic of Nigeria is a country with an area of 356,669 square miles. The country has a Real GDP of about 6%, a population of about 151,319,499 people, exports (f.o.b)  36.4 and imports (f.o.b) of 21.9 Nigeria has developed to become one of the most influential countries in Africa (Wesley). With immense oil reserves and an educated population providing knowledgeable human resource, the country has a solid foundation for foreign companies looking for investment opportunities. The country has grappled with the fight for democracy and national cohesion which has bore fruits for a country having a strong democratic society. The democratically elected government has instituted several measures aimed at boosting and facilitating foreign direct investment in the country. Nigeria has been noted to be one of the country whose foreign investment policy has lead to high numbers of foreign investment.

The country has a short process to start a new business venture; all businesses are registered through the Registrar-General otherwise known as the Registrar of Companies. The company can operate as:-

• Public or private limited company.
• Company limited by guarantee.

After a thorough country analysis it was found that with investment in a steel industry the company will be able to recoup its initial capital and enable a sustainable growth. This is due to construction boom and high number of population which will be able to boost sales.

Feasibility of doing business in Nigeria

The Nigerian business landscape is described in four major categories, this include a large population which constitutes the market, educated and highly skilled labor, vast natural resources and an undying spirit of entrepreneurship. This characteristics place Nigeria as one of the most important investment locations for any business that is aiming to expand and create a lasting footprint in emerging markets.

Doing business in Nigeria comes with great potential and ease.  For the purposes of industrialization and a move from financial crisis that had been developed by poor governance, Nigeria has made several adjustments on its investment regulation so as to create a positive environment for investment.  The government has facilitated the exploitation of the vast natural resources ranging from coal, petroleum and bitumen which have greatly contributed to an increase in the country’s earnings.  The country has moved to embrace globalization and liberalization of trade in order to promote foreign direct investments.  The democratization of the countries political institutions has lead to a shift in economic policies that have been geared towards attraction of foreign investors.  Besides that, the Nigerian government has gone further to constitute the Nigerian Investment Promotion Commission which has been charged with the mandate to make available to investors accurate updated information about investment opportunities.  These efforts by the Nigerian Investment Promotion Commission have been geared towards facilitating the development of new investments by foreign institutions.

Profitable and great economic opportunities in Nigeria and Africa as a whole have been clouded by misguided perceptions of risk. This ‘perception of risk’ creates a great opportunity for smart investors who take the opportunity and rush in to fill the vacuum created by risk evasiveness. In addition to this, the heavy dependence on oil by the Nigerian economy has left other sectors unexploited hence creating an opening where MNC can invest in. These untapped highly profitable sectors include construction where your company can invest in infrastructural developments and housing. Being a country that depends heavily on imports the country is the best destination for MNC to invest into the manufacture of the products being imported.