Views: 1146 Posts: 0 Started By: oladamats Last Poster: oladamats Last Post Date: Apr 27, 2018

April 27, 2018 ( Post 1 )


The Nigerian economy is back on track after some wobbles in the last few years, and we are seeing more businesses jumping onto the bandwagon of this rich African country.

Too often, marketing is confused with selling. Marketing is not the process of just disposing of the products that have been made. Marketing does not exist just to aid manufacturing, It is quite the reverse. Manufacturing can easily be outsourced. Marketing is a complex process that is neither precisely science nor art, rather a combination of the two. Simply selling involves only one perspective – the sellers'.

The seller’s aim is to dispose off the products that have been manufactured. Marketing is much more than that. For instance, if you know why Nigerians are looking at a review of Nairabet to play online games, it would tell you more about what their interests are. And then, you could tinker your product strategies accordingly.

For the Nigerian economy, newer businesses mean a focus on all of the above and more. Which makes us ask the question, how is it all happening?

Newcomer Investors Flood the Nigerian Venture Capital Market

In the recent years, there has been a consistent increase in venture capital, especially focused on Africa. Many private equity firms aim at helping early-stage investors in Nigeria grow. Some of the projections for the market of venture capital in 2018 are as follows.

1. High Chances of Improvement
According to the 2018 forecast, the venture capital market will largely continue to be a buyer’s market. However, the tech founders of Nigeria have become accustomed to working on the VC model and the expectations of the investors who work with venture capital.

The increase in the familiarity is also making people question if venture capital is actually good for the economy. Since venture capital gives a lot of control to the investors, the founders of tech startups or companies have their reservations about lesser control on their own company. Therefore, some tech founders and innovators prefer to have an added value through these investments and not just cash.

2. Paperwork and Agreements Are Important
Paperwork and agreements are an important part of making any private or venture capital investment formal. If there are no formal agreements, it brings the investors at high risk because there would be no liability and the interests of both the parties would be protected.

However, if the founders decide to register their company without getting any external funding, they are likely to avoid any issues related to finance and shareholders. This approach is good if you need independence but might reduce the scope and expansion due to lack of funding.

3. Diligence Is the Way to Go
A failure of working with due diligence during the early stages of investment can result in making things complicated for the company and might also result in its downfall. Several factors in Nigeria affect the focus of diligence in Nigeria. These factors include the fact that laws in Nigeria are not enforced properly and might have many loopholes. Secondly, because of the Federal system of government, there are inter-governmental litigations which lead to uncertainty in the application of certain frameworks.

To sum up, Nigeria can be a good market for newcomer investors and venture capitalists. However, they need to be careful in terms of paperwork and make sure that they read the fine print carefully before investing.


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