Austrian, German and Switzerland companies operating in Nigeria say the business environment is very bad even through they are cautiously optimistic that the situation will improve in the future

| By Anayo Ezugwu | Jun 19, 2017 @ 01:00 GMT |

AUSTRIAN, German and Switzerland, AGS, companies operating in Nigeria have described the economic environment in the country as very bad. The AGS, in a survey conducted for it by WFO Rodl & Partner Advisor Limited, said that 70 percent of companies expressed deep concerns about the current business environment in the country.
Presenting the report at the AGS 2017 business outlook in Lagos, on Wednesday, June 7, Olanrewaju Yusuf, associate director, advisory services, WFO Rodl & Partner Advisor Limited, stated that 28.21 percent of companies that participated in the survey believed that the business climate was satisfactory, while 12.82 percent expected negative growth in 2017. But looking ahead of 2018, 65 percent of the companies expected a better economic climate.
According to the report, the AGS companies noted that foreign exchange storage, security, corruption, oil price, transportation and power are the strongest factors affecting their business. On the power situation in the country, the report stated that 29 percent of the companies are will to install alternative power supply, while 94 percent are not willing. This means lack of confidence in the ability of the national grid to meet their power need. In the survey, 2 percent of the companies depend on diesel to generate power, 16 percent depend on gas, while 7 percent depend on national grid.
Ingo Herbert, consul general, consulate general of the Federal Republic of Germany, Lagos, said despite the challenges the enterprises remain cautiously optimistic about the future of Nigeria’s economy through mid-2018. “The government’s reform efforts came amidst a challenging macroeconomic background, with drops in foreign exchange and public revenues, lower oil prices and slowing headline growth. The government had pushed for a strong stimulus, with a $25 million infrastructure fund and a budget heavy on spending to boost the economy.
“Despite these difficulties, Nigeria remains a destination for savvy investors looking for long-term growth and returns on the continent. The country is richly endowed with enormous human and natural resources and we remain optimistic that the government will perceive these current challenges as a long-term opportunity to start diversifying the economy and focus on the huge untapped potential of the non-oil sector.”
He said the AGS business outlook event aims to be a recurring annual exercise that will provide an insight to interested stakeholders and political decision makers doing business in the country. “In addition, it will also be a means of dialogue with the federal government to bring to their attention difficulties being experienced by the international private sector operating in Nigeria. AGS enterprises are committed to continue partnering with Nigeria to improve the overall business environment exemplifies by the ease of doing business ranking.”
Also, Yves Nicolet, consul general, consulate general of Switzerland, Lagos, said the challenges Swiss companies’ faces in Nigeria are similar to those faced by Austria and German companies. “We all face problem in this country but also we are interested in what kind of successes can be obtained. It is really important to know how Swiss see the future of economy in Nigeria and through this survey we received a lot of information which can help us try to improve our businesses and also counsel new companies that would like to penetrate the Nigerian market.
“I’m very happy that Swiss companies participated in this survey. Switzerland has over 45 companies in Nigeria and most of them registered in Lagos, in many sectors. We have companies dealing in pharmaceutical products, agric sector, financial sector and constructions. I thank Swiss companies who informed us about their conditions in their host country and their efforts in trying to improve Nigeria and Swiss relationship in the economic sector. We are also helping Nigerians who are trying to establish companies in my country,” he said.
Nella Hengstler, commercial counsellor, Austrian Embassy, Lagos, said Austrian businesses in Nigeria have been making impact in the last couple of years. “We have a good relationship with Nigeria and no matter the economy outlook we will continue to do business in Nigeria. I think my vision for Nigeria is once the infrastructure comes on track and electricity works, manufacturing will happen in Nigeria again.”
AGS private sector companies have been operating in Nigeria for decades. During this time, they contributed towards the growth and development of the economy, increased employment opportunities, worked with the government in providing an enabling business environment and introduced technological advancement to spur their respective industries. Nigeria continues to maintain a positive and beneficial trade relationship with the three countries.