Experts have highlighted that proper market research and effective governance are the major ways to strengthen the legal framework of businesses in Nigeria.
This was disclosed at the 2024 law and business conference on Tuesday hosted by Crasvenit Horizon Legal Practice (CHLP). The event themed “The Nigerian Business Terrain: Structuring Businesses in a Fast-paced Economy”, discussed ways to bolster the resilience of businesses navigating Nigeria’s dynamic economic landscape.
It highlighted that Nigerian businesses in small, medium, and large categories can have formidable organisational and legal structures for resilience and sustenance if they make efforts to understand the market and have good leadership in place.
Folarin Oloyede, a modern business lawyer at CHLP said in his welcome address that proper business structuring requires creating appropriate legal structures and related business systems to drive growth and stability in Nigeria.
“In properly structuring a large company, it is non-negotiable to have a strong management team backed by a diverse, functional board of directors because a business that is not appropriately and legally structured is bound to fail,” he added.
Abiola Babatunde-Ojo, managing director of Prudent Energy and Services Limited said the key challenges businesses face in the Nigeria Business Terrain are regulatory challenges, economic instability, infrastructure deficits, and corruption.
“In all the challenges, opportunities still abound in Nigeria because Nigeria is a large and growing consumer market. Innovation and increasing adoption of technology, continuous consumer spending on goods and services, increased demands for FMCG, natural resources, and being a strategic location are key opportunities businesses have in Nigeria,” she added.
She further stated that effective governance can be established through strategic decision-making, oversight of operations, and risk management.
“Proper structuring attracts investments and transparency in businesses. Establishing effective governance is crucial even for small businesses because every business no matter the size benefits from good governance, what are the benefits you can see on the screen benefits of structure,” she noted.
Courage Obadagbonyi, chief financial officer at APM Terminals West Africa highlighted that another way to set up for success in a fast-paced economy is by understanding the market.
“As a start-up in Nigeria, market research is important. Most businesses need to understand the purpose of their business and spend more time on resources to help them understand the diverse market trends. However, leveraging social media platforms is an important tool needed to succeed in a fast-paced economy. It helps to connect with larger audiences,” he said.
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