US’ FCMG Company Must Not Enter Nigeria Without Knowledge of These Risks



Labour, reputation, quality, corruption and security issues must be understood before Fast Consumer Moving Goods company enters Nigeria. Getting the needed insights on these issues are important because failure to have proper understanding of the issues will have significant impacts on the company’s interests in Nigeria.
Understanding the demographics and psychographics aspect of the workers who are currently working with the local manufacturer is essential, when joint venture forms part of the entry strategy. It becomes imperatives because of the need to align the US-based brand’s strategic interest with the local company. Having the right human resources will go in a long way of helping the brand in realizing its long term goals. 
Analysing the reputation of the local company is equally important considering the severity of the food category of the consumer good sectors in the country. The government through its regulatory agencies is working assiduously to ensure qualitative food consumption for the citizenry. This risk should be analysed along with the quality of local materials being sourced by the local company.
Corruption is a national issue that pervade in public and private life. This must be investigated because of the need for understanding the level to which the local company tolerates bribery. Understanding of the security situation is equally important especially in the northern region where the insurgency has been causing negative impacts on businesses in the remote areas.

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