INTRODUCTION Countries go through different phases in their quest for development across different indices social, economic, political etc. The fact that no country was born developed suggests that these developmental phases cannot be short-circuited. Off all the developmental indices, economic development sits at the heart of them all. In the developmental process, counties and endowed with certain opportunities and face definite challenges. However, economic challenges and economic opportunities are not necessarily opposed to each other. The countries that have achieved greatness today are the ones that saw challenges as opportunities. Different schools of thoughts have posited that the government must, from time to time; intervene in economic dynamics and act as a market stabilizing force particularly during crisis. Others think that the government has no business doing business or to interfere in the markets. Keegan (2012) cited John Maynard Keynes and Friedrich August von Hayek as being at the forefronts of these schools of thought respectively. NIGERIA Economic: By the definition in Keegan (2013), Nigeria is clearly a lower-middle-income country with a GDP of USD262 billion divided among its USD168 million population and per capita GNI of USD1, 555. Schwab (2012) equally categorized Nigeria as a Factor-driven, stage 1 economy. He equally ranked it 115 th on global competitiveness index among 144 countries. However, it is also important to note that unlike quite a number of other countries particularly the high income ones, Nigeria has a very large shadow economy which is the part of Nigerian economy that is difficulty to capture or account for because it is informal, unregulated, unreported or under-reported. Schneider et al (2010) puts Nigerias shadow economy at close to 60% as of 2007. For this reasons, I will want to categorize Nigeria as an upper-middle-income country because this reflects the on-the-ground reality of things. The attractiveness of the market is partly responsible for the large influx of several multinationals into Nigeria as well as increasing FDI. Transformationwatch (2013) puts FDI into Nigeria at USD7 billion in 2012, topping FDI into Africa. Following the entry of most multinationals into Nigeria, we have also seen in creasing cases of profitability and break-even that is earlier than anticipated. The consumption rate of luxury goods in Nigeria reflects a classification that is higher than that which the books say and comparable to that of upper-middle-income countries like Malaysia, Brazil etc. There are a lot of investments in the Nigeria oil industry. Oil is the single largest foreign exchange earner for Nigeria. Political: In terms of its leadership, Nigeria has spent more than half (28+ years) of its 54 post-independence years under military dictatorship. This has not gone without attendant consequences on freedom and human rights, ballooning corruption and broken down infrastructure among others. While all these have negatively impacted per capital GNI, the Nigerian economy remains so strong on account of its macro and micro economic indicators. Social: With 3 key tribes (Hausa, Yoruba and Ibos) and more than 400 ethic groups and languages, Nigeria is among the most diverse countries of the world. As a multi- ethnic, multi-religious society, the diversity of orientation found in Nigeria is not unexpected. This diversity has partly contributed to the current instability both in government policies as well as the security of lives and property. Gourley (2012) has linked the Boko Haram terrorists group with headquarters in Nigeria to the dreaded Al-Qaeda. The activities of Boko Haram have nearly paralyzed all economic activities in Northern Nigeria in the last 18 to 36 months. RISKS Maplecroft (2012) ranked Nigeria 11 th on its list of countries with the highest political risks as of 2012. There have also been reports that Nigeria will disintegrate by 2015 (http://www.thenigerianvoice.com/nvnews/76341/1/di sintegration-of-nigeria-by-2015-as-predicted-by-.html). This is not unconnected how the 2015 presidential election is playing out with the masses. Lewis (2011) identifies 3 stress points that could destabilize Nigeria as (i) economic inequality and corruption (ii) social tensions and (iii) poor governance. The Niger-Delta militants are also STRATEGIC MARKET IMPLICATIONS AND CONCLUSIONS Companies and multinational as well as global corporations weigh their risks before considering entry into any country. While it is true that the chances of a good reward and high ROI increases with increasing risks, sudden and unexpected reversal of fortunes could result in huge, unbearable losses for the companies. Should the worst happens, all the positive economic predictions for Nigeria will crumble. The best case scenario will be for Nigeria to still remain stagnant in terms of development or even retrogress.
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