DISTANCE LEARNING INSTITUTE

(UNIVERSITY OF LAGOS)

NAME: OLAOTAN IDOWU IBRAHIM

MATRIC NO: 081007085

DEPARTMENT: BUSINESS ADMINISTRATION

COURSE: ACCOUNTING

LEVEL: 200

COURSE: BUSINESS ENVIRONMENT

COURSE CODE: BUS 220

ASSIGNMENT QUESTION

Write any five things you know about Nigeria and explain how each of them

affects business ?
 HOW TECHNOLOGY AFFECT BUSINESS IN NIGERIA

The fundamental changes in technology and quality of banking business in the country.

Technology has been discovered to be the main driving force of competition in the

Banking industry during the period of study. The adoption of ICT in banks has Improved

customer services, facilitated accurate records, provides for Home and Office Banking

services, ensures convenient business hour, prompt and fair attention, and enhances faster

services. The adoption of ICT improves the banks’ image and leads to a wider, faster and

more efficient market in the country. It has also made work easier and more interesting,

improves the competitive edge of banks, improves relationship with customers and assists

in solving basic operational and planning problems. It has continued to change the way

banks and their corporate relationships are organized in the country and the variety of

innovative devices available to enhance the speed and quality of service delivery. The

banking industry in Nigeria has witnessed tremendous changes linked with the

developments in ICT over the years. The quest for survival, maintenance of existing

market share and sustainable development has made exploitation of the many advantages

of ICT through the use of automated devices imperative in the industry. This study

evaluates the response of Nigerian banks to this new trend and examines the extent to

which they have adopted innovative technologies in their operations and the resultant

effects.ICT products in use in the banking industry in Nigeria include Automated Teller

Machine, Smart Cards, Telephone Banking, MICR, Electronic Funds Transfer, Electronic

Data Interchange, Electronic Home and Office Banking.

HOW EDUCATION AFFECT BUSINESS IN NIGERIA

The Basic importance of education is to enable individuals with knowledge and the ability

to apply that knowledge. Education is therefore commonly regarded as the most direct

avenue to rescue a substantial number of people out of poverty since there is likely to

be more employment opportunities and higher wages for skilled workers in the country.

Furthermore, education can enable children’s attitudes and assists them to grow up with

social values that are more beneficial to the nation and themselves. Endogenous growth

economists believe that improvements in productivity can be linked to a faster pace of

innovation and extra investment in human capital. There is also a central role for

knowledge as a determinant of business growth. There are empirically assess the effect of

education on business growth in Nigeria to the best of our knowledge. Education at all

levels contributes to business growth through imparting general attitudes and discipline

and specific skills necessary for a variety of workplaces. It contributes to economic growth

by improving health, reducing fertility and possibly by contributing to political stability.

The major importance of the educational system to any labour market would depend

majorly in its ability to produce a literate, disciplined flexible labour force via high quality

education. A better-educated labour force appears to have a positive and significant impact

on business growth both via factor accumulation as well as on the evolution of total factor

productivity. This study therefore examines whether the human capital can act as a source

of productivity growth and whether there is long run relationship between the level of

schooling and economic growth for Nigeria.

 HOW CULTURE AFFECT BUSINESS IN NIGERIA

Nigeria is the most populated country on the African continent and is seen as a regional

power. With a high potential for business growth , Nigeria is undergoing a lot of

business changes and rapid development. The nation is influenced by religions such as

Islam and Christianity, a variety of indigenous beliefs, as well as a long history of

slavery and colonialism. Understanding this diverse culture is the key to successfully

doing business in Nigeria. Nigerian Culture - Key Concepts and Values Ethnic groups –

More than 250 ethnic groups with different languages and cultural costumes can be

found in Nigeria. The largest ethnic groups are the Hausa and Fulani, which adhere to

Islam and the Yoruba and Igbo (Ibo), which adhere to Christianity. Therefore, be

prepared for interruptions by people of a higher rank when in meetings. In Nigerian

business culture, decisions are typically made by the most senior manager.

Nevertheless, input from employees is rewarded and encouraged.

Business relationships in Nigeria

Establishing a personal relationship with your Nigerian counterpart is common

Practice before starting to do business. Be prepared to spend the first hour or two of the

first meeting for that purpose only. Don’t try to avoid this practice, as it might affect your

business. Shaking hands is the common greeting procedure. Women normally don’t shake

hands. Due to the various cultures and languages prevalent in Nigeria, greeting one

another in English is the most common practice.

Business dress in Nigeria is smart. Outer appearance is very important, because it’s

an indicator for status. Some Nigerians tend to wear traditional “native dresses”.
 THE EFFECTS OF CORRUPTION ON BUSINESS IN NIGERIA

Is the most frequently cited source for the argument that "corruption in the form of bribing

can be an important arm in the hands of entrepreneurs seeking to do business with a

hostile or indifferent government and may, indeed stimulate the development process.

First it ignores the enormous degree of discretion that many businessmen and bureaucrats

can have, particularly in corrupt business societies. Therefore, for a given tax system, the

higher the level of corruption, the lower the revenue and the lower the resources available

for funding public provision of certain service. Second corruption increase the operating

cost of government and therefore reduces the resources available for other uses, including

the financing of social spending that is crucial to the formation of human capital. In fact,

higher corruption is found to be associated with lower education and health spending.

Government expenditure on education is negatively and significantly associated with

higher levels of corruption. Corruption also will likely decrease the effectiveness of

business flows in the country, which could have negative effects on the development of

business in the country. Thus as we have seen high and rising corruption by effecting on

the effectiveness of social spending. We have seen that high levels of corruption have very

harmful effects on business development in the country.

HOW MANUFACTURING AFFECT BUSINESS IN NIGERIA

Since the First Republic in 1960, the Government has been playing active role in promoting

core/strategic industries in the country. This policy was predicated on the premise that

industrialization contributes directly to economic growth, effective use of available resources,

employment generation and reduction of dependence on imports.

By the 1970s, a clear picture of the structure of the manufacturing sector had emerged. The

sector was characterized by:

(a) high geographical concentration

(b) high production cost

(c) low value-added

(d) serious under utilisation of capacity

(e) high import content of industrial output and

(f) low level of foreign investment in manufacturing.

During the period 1960 - 1980, the manufacturing share of Gross Domestic

Product (GDP) increased from 5 per cent to 8 per cent. In order to correct the observed problems,

which militate against the performance of the industrial sector during that period, Government

pursued the development of a more diversified and integrated industrial sector, financed with the

rapidly rising oil income and anchored on the relatively large domestic market as the

prerequisites for industrial take-off.

In the early 1980s, the industrial development objectives of the late seventies were continued.

Among these were provisions of greater employment opportunities. As the country's foreign

exchange earnings declined due to high import dependence, lack of research and development

efforts and absence of technological skills in the manufacturing sector, the structural weaknesses

in the sector became visible.