Reports

Market insights: The view from Nigeria

Nigerian interpreneurs are extremely confident. They scored the current climate for international business expansion most positively of those in any country – at 9.2 out of 10, and almost all (99%) expect the environment to become more favourable in the coming years. Nearly nine in 10 (89%) think it is easy to expand overseas right now, while just 6% think such a move would be difficult.

To what extent has AI impacted your organisation’s international expansion strategy?

That’s despite tariffs and trade disputes having had a major effect in recent years: 81% said they have had a significant impact on their organisation’s global strategy, but just 21% see tariff-related cost increases as a major threat to their overseas enterprise going forward (compared to 40% globally).

Talent acquisition is now a major motivator behind international expansion — 34% said so this year, putting it in the top 3 reasons (behind market growth opportunities and access to digital technologies and innovation), up from 21% in 2024.

AI looks set to be particularly transformative for interpreneurship in the country. The vast majority (94%) said AI has had a significant impact on international expansion strategy. Half (50%) said gaining access to digital technologies and innovation was a primary motivator for international expansion (compared to 40% globally).

The top potential threats to overseas operations looking ahead are: geopolitical instability (47%), and regulatory or compliance changes, and increased competition from local firms (37% apiece). Gaining access to new customer markets (60%) and forming strategic partnerships or joint ventures (57%) are viewed as the most significant opportunities going forward.

In our experience, international expansion is no longer viewed as a long-term ambition, but increasingly as a strategic necessity for businesses seeking resilience and sustained growth.

This shift is being driven by persistent macroeconomic pressures, including currency volatility and inflation, which continue to impact cost structures and profitability. At the same time, increased digital adoption and greater access to regional markets, particularly within Africa, are enabling businesses to explore crossborder opportunities with more confidence. However, this ambition is often accompanied by an underestimation of the operational and regulatory complexities involved.

From our recent client engagements, there is a clear sense of cautious optimism. Businesses are actively exploring expansion opportunities, but with a more measured and strategic lens.

Ajibade Fashina
Managing Partner, Kreston Pedabo