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the main problems facing the transportation systdm in Nigeria is 1. Lack of infrastructures 2. Poor maintenance of existing roads 3. Lack of provision of funds by the government 4. Neglect by both public and private organization in nigeria 5. Inconsistency in government policy and implimentation 6. Syphoning of public funds by contractors 7. Neglegence of duty.

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13y ago
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11y ago

3. The legal factor

The government through the laws governing Nigeria & the agencies created to enforce them affectsenterprises in many ways, some of which are: regulation of how the company does its business,how it gives information about its existence and performance, how it treats its employees etc.So organisations already sited here have to carry out business within the limits of Nigerian law andintending entrepreneurs must carefully put this into consideration, if they must do business in Nigeria.

4. The unemployment problem

In a country where most of the people old enough to work are either completely or structurallyunemployed, taking out a huge chunk of people who otherwise should've constituted part of thetarget market for various goods and services -- but as it is now, don't have the buying power required to purchase much of the goods and services being produced in the country, the businessman has to live with the fact that most of his potential market actually don't have enoughto buy his products or services.That is of course with the exception of goods or services that are not luxuries, but necessity. In thiscase this doesn't pose much of a problem to the business, as everyone would have to pay veryvirtually any price for its goods or services.

5. Ethics/Morality

As is the case in all other countries, the moral values of the Nigerian peoples either directly or indirectly affect the local business environment, whether positively or negatively.For example, it is quite common for larger organisations or even government corporations givingout contracts to actually do so, not on the basis of merit, but on who or who does not bribe theofficial(s) in charge of approving the contracts. In this case, the businessman who is unaware of this, though duly qualified to win the contract, may end up wasting his time and resources, as hemay not get the contract, even though he deserves to.

PETER KALU UKA | University of Lagos

3

BUS 221 - Write 10 factors you know affecting the Nigerian business environment.

6. Level of technological advancement

The level of technological advancement in Nigeria also affects the business environment.Technology is simply the application of knowledge or new discoveries from science to improve theway things are done -- and business is not an exception. Generally, the more advanced the level of technology is in a country, the easier it is to produce goods or carry out tasks which otherwisewould require more time, effort, and/or materials -- and Nigeria is no exception.A good example of the impact of technology on the Nigerian business environment is in the area of telecommunications. The introduction of the GSM mobile technology really boosted businessactivities. The benefits of the current widespread use of computers and other related machines andtechnologies is also an indication of the impact of technology on the Nigerian businessenvironment.

7. Societal and cultural environment

This comprises the attitudes, expectations, customs and beliefs of the people. The culture of a particular community affects the type of business that can be done there. For example, in thenorthern part of the country, alcohol production is against their culture (a crime, actually). So itwouldn't be such a good idea for a company or entrepreneur into alcohol production to evenconsider going there to either manufacture or market its products.

8. Available infrastructure and social amenities

Nigeria lacks (either completely or partially) many basic infrastructures which ordinarily should bereadily available, not just for the sake of business activity in the country but for all other purposesas well. The effects of the absence of these infrastructure cuts across all spheres of life in Nigeria,not just business.But its particular effect on business is that it has made the cost of starting business and running a business in Nigeria very, very high. It also heavily slows down the progress and growth of businesses, making very difficult for businesses to be started and for those already existing, tosurvive for very long. Two of the major amenities not readily available are electricity/power supply, without which virtually nothing can be done in this 'jet' age, and a good network of goodroads and a well planned and maintained transport system.

PETER KALU UKA | University of Lagos

4

BUS 221 - Write 10 factors you know affecting the Nigerian business environment.

Taking the electricity problem as an example here; businesses of all sizes have to deal with thedreadfully high cost of buying and running (fueling and maintaining) generators (or other alternative means of electricity generation) round the clock. Many businesses which wouldotherwise have been profitable, had to shut down completely as they couldn't keep up.

9. Educational sector

The Nigerian education sector greatly affects its business environment because it provides most of the human resources for all organisations in the country. And since the strength of any businessorganisation is virtually equivalent to the quality of personnel it has, the state of the educationsector of Nigeria actually dictates the tune in terms of the quality of human resources in the countrythat business organisations have to choose from.

10. The international business environment

Nigeria is a member of many international economic organisations like IMF (InternationalMonetary Fund), ECOWAS (Economic Community of West African States), ILO (InternationalLabour Organisation) etc. It there follows that their economic policies would affect the businessenvironments of all their member-countries, which includes Nigeria.Besides, many local Nigerian businessmen depend on foreign countries for both raw materials andcomponents for production, and also as outlets for exporting their goods. So they need tounderstand the different philosophies, politics and cultures of the foreign countries.

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11y ago

The problem is bad roads that could have serious results and low distribution. Bad roads could have bad impacts, like broken or sprained ankles, deadly car crashes, and the list goes on.

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3y ago

They don't know how to cooperate

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Q: What are the problems associated with distribution of goods in Nigeria?
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