How to run a business in Nigeria from the UK

Being abroad does not mean you must give up control. It does mean that control needs to be designed into the business. A trusted person matters, but they still need a defined job, spending limits and a way to show what happened.

Start with one question: what decision do you need to make next? For a new venture, that may be whether customers will pay. For an existing business, it may be why sales are rising but cash is disappearing. The answer determines what to investigate before spending more.

1. Separate an attractive idea from paid demand

Write down the customer, the problem and the offer in one sentence. Then identify the smallest practical test that could change your mind. Interviews help you understand a problem; paid orders help you understand willingness to buy. Treat them as different kinds of evidence.

For a trading business, begin with recent orders, payments, refunds and repeat purchases. Do not replace the records you already have with a fresh set of opinions. Look at what customers actually do.

2. Build a cost sheet that includes delivery

Your selling price has to cover more than the item itself. Include packaging, transport, payment charges, wastage, staff time and the share of fixed costs the business must support. Keep business operating money separate from the fee you pay an adviser or implementation provider.

If you fund costs from the UK, record the pounds sent, transfer charges, naira received and the exchange rate used. Compare actual receipts with the budget. A currency movement can change your costs without anyone having overspent.

3. Give each role an owner

Write down who can buy, who receives goods, who records payments and who checks the records. In a small operation, one person may wear several hats. If that creates a weak check, compensate with direct access to statements, independent spot checks or a separate review of larger purchases.

Family can be part of the team. Agree responsibilities, pay, working hours, approval limits and what happens when someone is unavailable. That protects the relationship as well as the business.

4. Agree a weekly evidence pack

Keep reporting short enough to use. Start with sales, money received, costs paid, money owed, cash available and decisions required. Add stock movements if goods are involved. Every important number should connect to a source record.

A photo of a busy shop is useful context. It does not reconcile cash. A spreadsheet is useful, but its totals still need to agree with invoices, receipts, stock and bank records. Ask about differences while they are small.

5. Put approvals before spending

Set a budget cap and decide which expenses need your approval. Keep a written record of approved changes. Give the local lead a practical route for urgent problems so that your time zone does not become an excuse for improvisation.

Avoid approving large transfers solely because a deadline sounds urgent. Confirm who is being paid, what is being supplied, when it is due and what evidence will support the next payment.

6. Check the formal requirements for your activity

The Corporate Affairs Commission maintains Nigeria’s business registry. Registration is one part of setup, not a substitute for checking the requirements of your particular activity. Ask the appropriate Nigerian professional to confirm the registrations, permissions and ongoing obligations relevant to your ownership and sector.

Do not budget from an old headline registration fee. Request a current itemised quote that separates official charges, professional fees and optional services. Confirm assumptions about who owns the business and what it will do.

7. Review before you expand

Agree the measures that would justify the next commitment before the test starts. They could include paid repeat orders, contribution per sale, delivery reliability or a reduction in unexplained cash differences. The right measure depends on the decision.

If the evidence is weak, the next step may be a smaller test, a different offer or a pause. Stop is a valid outcome. Protecting your capital is progress too.

A starting point you can use today

Write down your next decision, the evidence you already have, the biggest unknown and the person responsible for closing that gap. Then choose a review date before approving more spending.

Get the L.A.G.O.S. Scorecard and diagnostic to structure that review. If you need help applying it to your own business, explore a business assessment.

Source

Corporate Affairs Commission: its role and registry. Practical operating suggestions above are BFA guidance, not a promise of business results.