Due to its huge market potential, Nigeria remains a promising business environment for Sweden. Trade between Sweden and Nigeria has experienced a 25 per cent increase between 2021 and 2022. The total bilateral trade value across main sectors in 2022 was 372 million USD.
There is a diverse group of Swedish-related companies in Nigeria, with firms active in various industries and operating business models. We see a significant presence in the telecom and energy industries, with a diverse presence across other sectors. Of Swedish companies, 72 per cent offer services and/or marketing/sales activities in Nigeria.
Swedish companies are optimistic about the coming years. Based on the survey, we want to highlight four takeaways:
- We see confidence in the market growth over the mid-long term for Swedish companies.
- As many as 84 per cent of companies expect to grow in Nigeria.
- Of the responding companies, 62 per cent intend to invest significantly.
- Market expansion and hiring are major investment plans.
"Trade between Sweden and Nigeria has experienced a 25 per cent increase between 2021 and 2022.”
CURRENT BUSINESS CLIMATE IN BRIEF
According to the companies in the survey, Nigeria’s large market size creates good business potential. The main positive associations of the Swedish brand in Nigeria are quality and trust, followed by an overall strong brand.
Swedish companies operating in Nigeria highlight the positive aspects of the business environment, such as digitalisation, business mindset, personal safety, and access to specialists/key personnel.
As many as 1 in 2 companies report difficulties obtaining the necessary currency for trade, hampering daily activities and the ability to do transactions. But a monetary policy update for exchange rate unification by the Federal Government seeks to increase ease of access to foreign exchange in Q2, 2023.
1 in 3 companies considers corruption an issue in Nigeria, a source of market inefficiencies, increased costs, and unfair competition challenges. Corruption is a trade barrier that companies must be aware of and tackle appropriately.
But only two per cent of the companies reported, for instance, scarcity of skilled top managers, logistics problems or unreliable legal and judicial systems as challenges encountered in the Nigerian market.
The Embassy and Business Sweden are happy to discuss the possibilities of establishing in the Nigerian market. Contact us today for a full copy of our report or to discuss your next steps.