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Institute Code-764 Zone 2 Global Country Study Report 2012-13 Country: Nigeria Institute Name: Shree Saraswati Education Sansthan Group of Institution-Faculty of Management, Rajpur, Kadi, Mehsana Institute Code-764 Zone 2: Gandhinagar Zone TABLE OF CONTENT SR. PARTICULARS PAGE NO. No PART- 1 1. NIGERIA-PESTAL ANALYSIS REPORT PART-2 2. TRANSPORTATION INDUSTRY: Transportation Industry of Nigeria 3. PAINT INDUSTRY: Analyzing Opportunities Through Feasibility Study On Royal Enterprise In Nigeria 4. PHARMACEUTICAL INDUSTRY: Present Environment In Pharmaceutical Sector 1. NIGERIA- PESTEL ANALYSIS REPORT ANALYSIS OF POLITICAL ENVIRONMENT OF NIGERIA Political environment:- I. Nigerian politics is influenced by multi political parties. II. Nigeria has three major ethnic groups (Hausa-Fulani, Igbo's, and Yorubas), which influence Nigerian politics. III. Nigeria has more than 250 languages. IV. 11 major political parties in Nigeria based on different ethnicity, languages, religion. V. In last 100 years, Nigerian politics is influenced by military, different ideology, Insurgency, Corruption. causes instability, poverty, Illiteracy and other socio-economical issues. Nigerian political trend:- I. Nigerian culture is cosmopolitan culture. Different ethnic group, religious group etc. influence the Nigerian political trends. II. Nigeria has different religion like Muslims 50% in the northern part of III. Nigerian politics moving around ―Sharia Law‖ due to Muslim majority. IV. Nigeria operated under different political system in different time (Democratic Parliamentary System Political culture:- I. Nigerian political culture influenced by different factors, But Nigerian Political culture has some characteristics Modernity v/s Tradition Religious Conflict Geographical Factor Political parties and leaders: 11 Major political parties I. The Peoples Democratic Party (PDP) II. Abacha Peoples Party (APP) III. The Alliance for Democracy (AD) and many others Modern era trend in nigerian politics:- Nigerian Political system was divers in terms of time, System. I. Republic – parliamentary system, 1960-1966 II. Instability or Military Rule, 1966-1998 III. Current- Presidential Democracy, 1998 Resource control & politics:- I. Nigeria has natural resources like petroleum. Which comes from southern part of Nigeria mostly Niger delta region. II. Northern part of Nigeria is Muslim dominated, while south Nigeria, Christian dominated. But Muslims are in majority and government influence by ―Sharia Law‖. Hence these resources are controlled by Muslim dominated ruling parties. III. All Nigerian political parties ruling around petroleum production & exports because of 90% of Nigerian GDP comes from petroleum exports. ANALYSIS OF ECONOMICAL ENVIRONMENT IN NIGERIA: Northern cities Kano & katsina, recorded history before 1000 AD. The Hausa kingdoms & Bornu Empire prospered as important terminal of north-south trade between forest people & NA Berbers that exchanged ivory, slaves & kola nuts for salt, cloth, and coral. Weapons, brass rods & cowries hells that they used as currency. th th In southwest, the Yoruba kingdom was founded its height from 17 to 19 centuries they attained a high level of political organization . Oil-rich Nigeria has been hobbled by corruption, inadequate infrastructure, Political instability & poor Macroeconomic but economic reforms pursuing in 2008. By oil sector they earning 95% of foreign exchange & about 80% of budgetary revenues. In 2007-2011, because of growth in non-oil area & tough global crude oil prices the GDP rose strongly. Nigeria‗s financial sector was damaged by the global financial & economic Crices. The President JONATHAN announced plans to increase transparency improve fiscal management and diversify economic growth. Agriculture: th st Nigeria ranks 25 worldwide & 1 in Africa in farm output in 2011, GDP in agriculture is 35.4%. Nigeria is a major Exporter of groundnuts (peanuts), cocoa, & palm oil cocoa production, from more varieties & extra plants & it is heavy at around 180000 tons annually and before 25 years it was 300,000 tons. Africa the biggest producer, the output of corporate poultry has been reduced from 40 million birds annually to 18 million. Industry: th rd The Nigeria ranks 44 worldwide & 3 in Africa in Factory output. GDP in this sector. is 33.6%.and also include coal, tin, Crude oil, rubber products, columbine, hides & skins, Wood, cement & other construction material, textiles, food products, footwear, fertilizer, chemicals, ceramics, printing etc. in this sector. In 2000, 98% exports earning & 83% of federal govt. revenue for oil & gas. It is the member of the Organization of petroleum exporting countries (OPEC). In Nigeria the pump price of P.M.S. currently 97₦, but in Nigeria some operating stations particularly in towns far from state capitals tend to sell the product at higher price from 110₦ to 140₦. Services: In 2011 GDP is 31% in services Industry. rd th Nigeria ranks 63 worldwide & 5 in Africa in Services Output. In 2007 29% of Nigerians in urban areas did not have their own accounts. Labour force: In 2005, Nigeria had a labour force of 57.2 million. 74% immigrants in Nigeria from Economic Community of West African States (ECOWAS),and Increased from 63% in 2001 to 97% in 2005. In recent times migration rate could reach -0.4 in 2010. The number of immigrants residing in Nigeria has more than doubled in recent dacades—from 477,135 in 1991 to 971,450 in 2005. ECONOMIC RATES OF NIGERIA: Details Country (NIGERIA) GDP(Exchange Rate) $247.1 billion (2011) GDP- Real Growth Rate 6.9% (2011) 8.7% (2010) 7% (2009) GDP per Capita (ppp) $2,600 (2011) $2,500 (2010) $2,300 (2009) GDP- Composition by Sector Agriculture: 35.4% Industry: 33.6% Services: 31% Labor force 52.16 million (2011) Investment (Gross fixed) 13.8% of GDP (2011) Inflation rate (Consumer Prices) 10.8% (2011) 13.7% (2010) Industrial production growth rate 2.5% (2011) Oil production 2.458 million bbi/ day (2010) Oil- consumption 279,000bbi/ day (2010) Natural gas – production 23.21 billion cu m (2009) Natural gas- consumption 7.216 billion cu m (2009) Exports $101.1 billion (2011) $73.7 billion (2010) Exports – commodities Petroleum and petroleum product 95%, cocoa, rubber Imports $67.36 billion (2011) $53.46 billion (2010) Imports – commodities Machinery, chemicals, transport equipment, manufactured goods, food and live animals ANALYSIS OF SOCIAL ENVIRONMENT OF NIGERIA SOCIAL ENVIRONMENT:- No section of the country is safe to the growing Problems.JOS; Nigeria (Compass) religious conflict have become serious and worrying in Nigeria. They have undermined national unit and adversely affected Nigerian churches. When conflicts occur, property is destroyed, live are lost and church activities are hindered. Second, Muslim seeks the opportunity to use ethnic problems to force Islam on non-Muslim tribes. The result can be a harvest of blood, tears and sorrows. NORTHEN NIGERIA:- Religious Conflicts between Muslims and Christians began to increase in northern Nigeria in 1980. And sharia, or Islamic law, in several states, the crashes have grown. In Kaduna state, Conflict between Muslim Hausa and Fulani and the Bajju, at yap; Kagaro, Jaba, Kaninko, Ikulu, and Ninzam. And the Conflicts have Destruction over 800 Churches and the killing of more than 1,000 Christians. In Bauchi state, conflict occurred between the Hausa and Fulani, and the Savawa ethnic Group. SOUTHERN NIGERIA:- Conflicts have occurred in the southern part of the country also have ethnic and Religious Roots. In Northern Nigeria Conflict are between Muslims and Christians, and in Southern Nigeria Conflict occur between animists (traditional religionists) and Christians. In Northern Nigeria, Political interest have Brought about the Occurrence of ethnic Conflicts. Examples; Epebu against Emadike in Bayelsa state; Aguleri against the Umuleri in Anmbra state; and the Eleme against the Okrika, in Rivers state. DOMINANT ETHNIC GROUPS IN NIGERIA:- By percentage of total population Yoruba—21% Igbo – 18% Hausa – 21% Fulani – 11% Source: The World Almanac, 1998 SOCIAL SITUATION:- The 2008 Human Development Report ranks Nigeria 154th out of 179 countries, with a Human Development Index (HDI) of 0.499, which places Nigeria in the low human development category. Nigeria must overcome an enormous challenge in order to achieve the MDGs. According to estimates for 2008, just over 64 % of the population lives on less than US$1.25 per day. Around 30 % of children below the age of 5 are thought to be malnourished, with percentages reaching critical levels in several states. Net enrolment in primary education is estimated at about 68 % and secondary enrolment is also low at about 27. Education and health: - Nigeria is making efforts to meet the target for primary school enrolment and elimination of gender disparity at all levels of education. Commitments have also been made to continue increasing the adult literacy rate (in 2006: 71 %, in comparison with 48.7 % in 1990). Nigerian high schools and universities are plagued by strikes, and standards are not very high. The syllabi tend to concentrate on general subjects rather than being oriented towards the delivery of professional and technical skills. Policy initiatives since 1988 have been targeted at ensuring the integration of information and communication technology (ICT) in the Nigerian school system. The country‗s health system ranks 187th out of the 191 Member States of the World Health Organization (WHO). It is estimated that the medical resources
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