Analysis of Nigerian Business Environment Essay Example

Analysis of Nigerian Business Environment Paper The project concerns the investigation of the current renewable energy market entry and opportunities for Finnish mall and medium-sized enterprises (Seems) in the Nigerian economy. The goals is to support growth and accelerate the internationalization of small and medium-sized Finnish renewable energy companies within developing countries and to determine how they can achieve market entry in the renewable energy resource business in Nigeria. There is great demand for electricity in the country due to its high consumption, and this thesis will study the demand for renewable energy resources in Nigeria, identify the main competitors and discover the best periods for market entry in Nigeria. A qualitative method of analysis was used in this thesis project, and a questionnaire survey was sent to three energy organizations in Nigeria. These included the International Centre for Energy, Environment Development; the Energy Commission of Nigeria (ACNE); and the Council for Renewable Energy in Nigeria. The investigation of this thesis project provides information needed to establish renewable energy in rural and urban areas in Nigeria. The Nigerian government is encouraging energy companies to invest in the country and special energy policies for foreign investors have been organized, such as a ax reduction plan for energy investors, and the relaxing of energy policy. Nigeria is a nation with great potential for renewable energy solutions, such as sunlight which might be productive for solar power solution, and plentiful bio-waste for biomass energy production. We will write a custom essay sample on Analysis of Nigerian Business Environment specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Analysis of Nigerian Business Environment specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Analysis of Nigerian Business Environment specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The key research questions are as follows: Is it advisable for the Finnish renewable energy companies invest in Nigeria? What renewable energy sources have a better potential to be a growing and developing investment in Nigeria? 8 1. 2 Methodology The method used in thesis projects is qualitative research method, which can be refers as scientific researches that consist of investigation that collect evidence, produce findings that are undetermined in advance, need answers to a question, producing informations that are application beyond the immediate areas of study and use a predefined set of procedures to answer the question. It is also important for information collections to maintain clear boundaries between information they received by the participant and what they ask the participant. Furthermore, questionnaire was carefully prepared and directed to renewable energy Nos (International Centre for Energy, Environment Development and Council for Renewable Energy in Nigeria) and the Nigerian government organization called the Ministry of Energy. The questionnaire was vital for the aims and objectives of the thesis as part of the CONNECT project requirement. Majority of the questions asked were related to the PESTLES actors. The questionnaire format is related to questions based on suggestions, energy situation and government incentives and support in establishing a company in the Nigerian market. The questionnaires are based on their understanding of the energy situation, the availability of renewable energy resources, the level of energy competition companies in the country, the economic and environmental competitive, which were sent to them, via their email address and there was also a follow up by telephone in other to hastening them for responses. The investigation of this thesis project revives information needed to establish renewable energy in the rural and urban areas that are in need of energy in the country. Literature reviews is still part of the methodology used in the PESTLE analysis of the project where information are being gathered from different sources, documented, evaluated and presented. 1. 3 Key definition Renewable energy can be refers to as a natural energy at which its energy supply is limited. Renewable energy can never run and can be used again and again. Renewable energy has been in use for so many years in different ways. An example is how the primordial human used the application of wind for sailing; rather the same wind is now used for electricity generation in the modern era. 9 Some of the renewable energy resources are as follows. Wood, Biomass, Wind, Hydro, Wave, geothermal, tidal and solar. (Clean Energy Ideas, 201 2) 1. 4 Structure of the thesis Figure 1 Thesis structure The Introduction and Objectives of the thesis was described in chapter one. In chapter TV, PESTLE analysis of Nigeria has been examined. In chapter three, the energy market situation in general and rates Of demand and supply was analyzed. In chapter four, the renewable energy market demand, its vital resources have been concluded. In the chapter five, research method analysis was conducted via interview questions to different organizations related to renewable energy business. 2 The Business Operating environment in Nigeria (PESTLE Analysis) The PESTLE factors consist of the Political, Economic, Social, Technological, Environmental and Legal. It is a strategic technique that gives useful information for analyzing the environmental tension in a particular environment. For example, in this project, it means to analyze the Nigerian equines operating macro environment for renewable energy opportunities. 10 Figure 2: PESTLE analysis political Factors refers to changes in government impact, its priorities for the Nigerian relationships with other countries which closes or open the market bond between them which includes the forms of government, bureaucracy, international relationship, corruption, public ownership right and many more. Economy factors refers on how the economics of a particular place can affect business such as changes in wage rate, inflation, Economic stability, employment rate, labor force, division of income. Social Factors refers to changes in trends which include lifestyles, behavior, attitude, business culture, cultural changes, family change, demographics and expectations. Technological factors refers to as the level of technology in Nigeria which will helps with the introduction of renewable energy solution in the country which Includes, electricity, infrastructures and modern communications. Environmental factors includes geographical sites and locations, climatic changes, natural resources related to renewable energy solutions, level of infrastructures, Public opinion, cost implications and frequency of environmental catastrophe. 11 Legal factors includes the Nigerian rules and regulations related to energy, Cocoas and African union legislations and Nigeria directives 2. 1 Political factors 2. 1. Politics and Administration Nigeria is a republic nation which operates a Federal system of government, with three different authorities- The Federal, State and the Local government. The division of power is among the three arms of government. The Federal Government consist of the Judiciary which interprets the laws, for examples supreme court, court of appeal and the district court; the executive enforces ND carry out the laws, for example federal and the legislature makes the laws for example senate and house of representative. The state government consist of (36 States including the Federal Capital Territory Baja) some of the states in the northern Region consist of Kane, Sudan, Sotto, Born, Dammar, Catkins, Gumbo, Samara and others can be shown on the map. The western region consists of Lagos, Gun, Indo, Sun, Kite, Oho, Awkward etc. The states in the South and East consist of ABA, Belays, Delta, Umbra, Rivers Imo; Ensue (Teach anywhere 2009). Figure 3: Map of Nigeria 12 The Nigeria government consists of 774 local government areas (CIA 2012). The political terrain is becoming attractive to business in Nigeria since the country became a democratic system in the year 1999. For the past 13 years, Nigeria has been experiencing an uninterrupted democracy and the latest election was held from the month of April to June 2011 which was a democratic form of choosing a representative to the Nigerian government and its various States. Those elected on the federal level are the head of states (The President and Vice President) and legislature system which is (National Assembly). The Nigerian President is elected by the People via election voting system. The national assembly is a form of two chambers, House of Representatives with 360 seats and the Senate which has 109 seats and all are elected for a four years term each. The political terrain is becoming positive except for the northern region of Nigeria that is experiencing instability due to religions unrest, security operatives are deployed to the region in other to neutralized the situation and the government have begun in negotiating with the religious crisis cabals (BOOK HARM) in the northern region in other to address the annoyance of he group which will improve the business day to day in the region. The southern region of Nigeria is very suitable for businesses day to day which control the economy power of the country. 2. 1. 2 Government Policy The government policy in Nigeria varies in different situations, for example changes in government regime every four years. According to the Industry analysis in Nigeria, government policies usually have a great impact.