Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 1

1) What problems may Moran Family of Brands experience by franchising in Nigeria?

Answer::
Major challenges of doing business in Nigeria:

i) Corruption and bribery:


Nigeria ranks 148 out of 175 countries according to the 2017 Corruption Perception
Index reported by Transparency International. This single data is enough evidence to
suggest that majority of public agencies demand money for work. There will be
bottlenecks at each and every step right from the inception stage and unless the
government agencies are paid the work will suffer. American company are not used
to bribery, so the first major hurdle or challenges the Moran Family of Brands will
face is accepting bribery a new norm of business.

ii) Government regulation:


Government regulation are not investor friendly and Nigeria rank low on the ease of
doing business. Though the Nigerian government has replaced the 1990 Act and
bought in The Nigerian Companies and Allied Matter Act 2020, with major
amendments with a aim to promote transparency, protect owners of business and
improve good corporate governance. But it remains to be seen how effective the new
act will be in combating corruption and promoting ease of doing business.

You might also like