CULTURAL ISSUES ABOUT DOING BUSINESS IN NIGERIA\

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CULTURAL ISSUES ABOUT DOING BUSINESS IN NIGERIA

INTRODUCTION

This thesis is an assignment from Thurmo Oy, a Finnish company that is located at Tulkinkuja 3, Espoo, Finland. The Company manufactures a product called Thurmo Stop Leak, used for the repair of car engine radiators, cracked engine blocks and metal water cans. The product has been in existence for the past 40years and has proved to be efficient. The product was first manufactured in the USA by "Producers Ltd" in form of a sugar cube before it was manufactured in Finland by Thurmo Oy in powder sachets.

Thurmo Oy has 14 trading partners in Europe including Poland, Hungary, Romania, Czech Republic, Slovakia, Estonia, Latvia, Lithuania, Belarus, Australia, and New Zealand among others). The chemicals for the Thurmo Stop-Leak are imported from the USA and Germany, most of the production process is done through subcontracting (outsourcing) e.g. mixing of the chemical is done by a different company while packaging of the product is done by another company. Thurmo Oy has a millennium goal of increasing it sales hence the writer is making this research for the company to analyze the possible problems attached with doing business in Nigeria especially as concerned with cultural diversities in Nigeria. Thurmo Oy after its research believes it has market for its product in Nigeria but confronted with how to manage the cultural issues about doing business in Nigeria. This research thesis will explore the possibilities of doing successful business in Nigeria for Thurmo Oy by giving a comprehensive overview of the Nigeria market in relation to its cultural diversities and also proffer recommendations on necessary steps to be taken to explore the opportunity in the Nigerian market (www.thurmo.fi).

1.1 Overview of Nigeria

Nigeria is a country located in the Gulf of Guinea in West Africa and shares border with Cameroon in the east, Chad on the northeast, Niger on the North and Republic of Benin on the West. It is Africa´s most populous country and the biggest and richest country in Africa and the tenth largest country in the world, with population of about 149 million and total land area of 356,669 square miles (923,773 square kilometers). Nigeria came into existence as a result of the amalgamation of 1914 by Lord Laggard which joined the North and South together to form Nigeria. It secured her independence in the year 1960 from Britain and currently has 36 states with its capital located at Abuja. It has 6 major business cities comprising Lagos, Abuja, Aba, Onitsha, Kano and Kaduna. The country is highly blessed with natural resources e.g. Timber, Column bite, Rock Salt, Gypsum, Lead/Zinc, Bentonite and Baryte, Gemstone, Kaolin, Tantalite, Talc, Iron Ore, Tin, Oil and Agricultural farm land for both crop and arable farming.

Nigeria as a country is very diverse owing to many tribes that exist in the country. It is estimated that Nigeria has about 371 tribes and 400 spoken languages (Ethelbert E. Kari; March 2002, 1.).

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59
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1-5
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