Why Expanding To Nigeria Is Essential For Your Business

Nigeria, popularly referred to as “the giant of Africa”, is one of the biggest economic hubs in Africa. With a population of over 200 million, set to be the third most populous country in 2050, it is unsurprising that Nigeria has attracted big companies such as Google, Starlink, Chevron and many others who have set bases in Nigeria. 

World Bank’s Doing Business 2020 report notes that Nigeria is one of the top 10 economies in areas of development. With the largest GDP in Africa, it's no surprise that businesses seeking revenue growth, attracting a large and diverse customer base, or seeking to expand market influence are fast trooping into Nigeria. 

If you are considering business expansion to Africa, Nigeria is your prime choice. In this article, we’ll detail why Nigeria is regarded as an economic business hub and how expanding to Nigeria is in your best interest for business expansion. 

Nigeria, Africa’s Largest Economic Hub

Nigeria, the largest economy in Africa, is a thriving market and investment destination. With over 200 million people and abundant natural resources, Nigeria's strategic location and youthful population make it an attractive destination for businesses looking to expand to other African countries.

Over the past decade, Nigeria has experienced an average GDP growth rate of 6.9%, making it one of Africa's largest recipients of Foreign Direct Investment (FDI). Its median population age of 18 years is significantly lower than the global average of 30, providing a diverse population that embraces technological and business growth. 

In addition, Nigeria is the most crypto-curious nation globally, outranking United Arab Emirates (UAE) and Singapore, both popular business hubs. In addition to providing a competitive talent pool because of its age distribution, Nigeria's rapidly growing customer base makes it a prime market for companies looking to expand their customer base in Africa. 

Why Expanding to Nigeria is Vital for Your Business

Nigeria has become a home to several international companies spread across the globe. Here are some reasons why investing and expanding to Nigeria is profitable for your business

1. Large Consumer Market
   Nigeria's vast population, mainly its young demographic, provides a large consumer market for businesses seeking to expand. Companies can establish a solid customer base in Nigeria by meeting basic needs and building brand loyalty. Moreover, Nigeria's growing curiosity and interest in technology presents an opportunity for businesses to introduce new products and services.
   
2. Friendly Government Policies and Taxes.
   The Nigerian government has put in place friendly policies and regulations that are attractive to foreign investors. Nigeria's free-market economy and low corporate tax have reduced barriers for businesses seeking to expand, making it easier and less expensive to begin operations in Nigeria. 
   
3. Fast-Growing Economy:
   Despite the COVID-19 pandemic and recession setbacks, Nigeria's economy is diversifying and fast-growing. According to McKinsey and PWC, Nigeria is poised to be among the top 20 economies by 2030. This presents an opportunity for businesses to profit from the country as more corporations come to Nigeria.
   
4. Fast-Growing E-commerce and Retail
   Nigeria is one of the largest and fastest-growing e-commerce markets in Africa, with a growing appetite for online shopping.  According to Statista, the e-commerce market in Nigeria was valued at $13 billion in 2020 and is expected to grow to $34.3 billion by 2024.  The growth of e-commerce and online shopping in Nigeria makes it an attractive market for businesses looking to expand and tap into the country's large and growing consumer base.

Expand To Nigeria Easily With Yellow Card’s Payment API 

Nigeria offers several benefits to investors and business owners and has quickly become an economic hub for international companies. However, while expanding your business, you must be equipped with the necessary tools and facilities to help you adapt to the local culture and industries. 

Yellow Card’s Payments API, a product of Pan- African Fintech, Yellow Card is a valuable integration for international businesses seeking expansion in Nigeria and across Africa. Here’s why integrating Yellow Card’s Payments API is necessary for seamless expansion to Nigeria:

Access to Liquidity: With a presence in 16 countries, Yellow Card’s Payments API allows business owners to run operations in Nigeria and Africa efficiently because of its extensive liquidity. Businesses can easily accept and payout customers in Nigeria without dealing with local fiat or treasury. This means companies can avoid the hassle of navigating the complex financial landscape in Nigeria and focus on growing their business. 

Access to local payment methods: While Yellow Card assists businesses in managing treasury by easily converting local African fiat to and from stablecoins like USDT and USDC, the Payment API also integrates local payment methods such as bank transfers and mobile money (MoMo). With the available local payment options, businesses can easily connect and process transactions from customers with no inconvenience to their customers. 

Seamless integration:  Yellow Card’s Payment API helps ensure a trusted, quick, effective payment system is embedded directly into your platform with no hassles. Therefore, customers can easily complete seamless deposits and withdrawals directly within your app without going to an external payment portal or app.

Hedge against Inflation: When expanding operations to Nigeria, you will not need to worry about the transaction cost of currency conversions as Yellow Card’s Payment API automates the process. At the same time, your business is protected from the inflation associated with African fiat currencies as you can safely hold funds in USDT. 

Regulatory Compliance: Additionally, Yellow Card is licensed and compliant with local regulations, assuring businesses of their security and reducing the risk of legal issues as they expand operations.  

State-of-the-art security: Yellow Card is fortified with strict security protocols to create a sustainable, secure payment integration for your business. Also of note, Yellow Card’s Payment API, like its other products, is built on blockchain technology. This eliminates the chances of downtime, allowing your customers to process transactions on the clock. 

Key Takeaways

Nigeria is an economic hub that attracts investors from across the globe because of its vast resources, consumer market, corporate talent pool and strategic positioning across Africa. This is why expansion to Nigeria offers businesses an avenue to expand their business, test their product and expand their market influence.

Yellow Card’s B2B Payments API is a valuable tool for businesses looking to start or expand operations in Nigeria to rely on because it helps them navigate the financial landscape seamlessly.

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