Presentation slides from Steve Murphy's keynote speech at Business in Africa Pays: Nigeria 2014. Mr Murphy explains how Hitachi, a company that is responsible for 82% of the worlds IT infrastructure, is making inroads to Nigeria. You can watch a video of Steve's presentation here: http://businessinafricapays.com/steve-murphy-keynote-speech-at-business-in-africa-pays-nigeria-2014/

1. NIGERIA: A WORLD OF OPPORTUNITY
STEVE MURPHY
VICE PRESIDENT
UK & Ireland
Emerging Markets EMEA
1

2. WHO IS MURPHY ?
 Steve Murphy
‒ Scottish
‒ Married 24 years
‒ 3 daughters (22, 20, 19)
‒ 7th year at HDS
 7 years at Oracle
Technical & Sales
 7 years at Sun
Sales Director
 5 years at EMC
EMEA VP Software
 2 years at HP
UK GM
 7 year at HDS
RVP Emerging Markets

3. HITACHI LIMITED
• Established in 1910 in
Hitachi city, Japan
• Japan’s biggest producer of
electronics
• Employs more than
360,000
• Operates in multiple
industries including supply
of semiconductors, medical
equipment, construction
machinery, trains and
power stations
• Ranked number 5 in terms
of number of US patents
held
• Annual revenues exceed
100 billion dollars

4. HITACHI DATA SYSTEMS
• Headquartered in Silicon
Valley, California
• Hitachi’s focal point for the
sale of its enterprise computer
equipment including computer
servers, data storage
systems, software and
consulting services
• Conducts business through
direct and indirect channels in
over 170 countries
• Sells to both private and public
customers
• 82 of the Fortune Global 100
companies use Hitachi Data
Systems’ equipment

5. EMERGING – WHO WE ARE!
Population 1.2
billion
Five Major
Branches
(J’burg, Dubai, Istanbul,,
Warsaw, Prague)
Area: 50 Million
Km2
Growing &
Profitable
21+ major
languages
12 HDS office
locations
Operational
across 50+
countries
300 employees
18+ major
currencies
3 Major Regions
4 Time Zones
(Africa, Middle East &
Turkey, Central &
Eastern Europe)
Total # of
customers: 900+
$150 Million
Turnover

6. WHAT HEADLINES DO I SEE WHEN I THINK ABOUT
NIGERIA?

7. WOULD YOU INVEST IN THE BRICS COUNTRIES?
OF COURSE YOU WOULD!
Country
Population Growth
2011
Growth
2012
Growth
2013 (est)
Brazil
194m
2.7%
0.9%
2.9%
Russia
142m
4.3%
3.4%
2.3%
India
1.13bn
6.3%
3.2%
5.7%
China
1.33bn
9.3%
7.8%
7.7%
South
Africa
52m
3.5%
2.5%
2.5%
(World Bank statistics)

8. BUT WHAT ABOUT NIGERIA…
Country
Population
Growth
2011
Growth
2012
Growth
2013 (est)
Brazil
198m
2.7%
0.9%
2.9%
Russia
143m
4.3%
3.4%
2.3%
India
1.2bn
6.3%
3.2%
5.7%
China
1.3bn
9.3%
7.8%
7.7%
South
Africa
51m
3.5%
2.5%
2.5%
Nigeria
168m
7.4%
6.6%
6.7%
(World Bank statistics)

9. INSERT NEWSPAPER HEADLINES ABOUT
NIGERIA’S POTENTIAL

13. WHAT HEADLINES DO MY LAWYERS SEE?

14. AND LOOK AT THESE NUMBERS FOR NIGERIA!
 Fourth fastest growing economy in the world from 2001-2011
(IMF)
 Economy of Lagos is as big as the economy of Kenya
 Predicted to overtake South Africa to become Africa’s biggest
economy by 2015, 2020 or 2025 (depends which newspaper you
read!)
 GDP per capita doubled from 2000 to 2012
 Tenth largest proven petroleum reserves in the world and Africa’s
leading oil producer
 Nigeria is the most lucrative telecoms market in Africa with growth
at twice the African average
 Nigeria is the second biggest market for Guinness in the world
having overtaken Ireland in 2007 and expected to overtake the
UK to become the biggest next year!

15. SO WHY DO MY LAWYERS HAVE CONCERNS?
The world as seen by the International Monetary Fund
(source Real GDP growth, IMF Data Mapper)

16. CORRUPTION AROUND THE WORLD
The world as seen by Transparency International
(source TI Corruption Perception Index November 2012)

17. GLOBAL ECONOMIC GROWTH V GLOBAL RISK

18. WHAT DO MY LAWYERS SEE?

23. SO WHY BOTHER?
• Nigeria has strong historical, language and constitutional ties with the UK
• Nigeria is the UK’s 31st largest overseas market
• It was the second largest African market for UK goods last year
• UK companies as diverse as Diageo, Shell, Unilever, Cadbury, Standard
Chartered, Blue Circle and British Airways are already resident in the
country
• There are investment incentives in the form of Free Trade Zones and
reduced tax rates
• Availability of established professional services support from local
lawyers, accountants and consultants
• Nigeria is in a position to build a highly prosperous economy aided by
high oil prices

24. OPPORTUNITIES IN NIGERIA
According to the UK Trade and Investment department of the UK
government there are major export opportunities in the following
industries:
• Oil and gas
• Agriculture
• Mining and mineral processing
• Power
• Communications
• Film industry (Nigeria’s film industry is the 3rd largest in world)
And UKTI also believe there is a lot of potential in
healthcare, finance, ICT and construction and infrastructure.

25. HITACHI DATA SYSTEMS AND NIGERIA
 We bought our African reseller, Shoden Data
Systems, last year
 Prior to the acquisition HDS had no direct
presence in Africa. Hitachi Limited however
had a number of other business established
in Africa
 We primarily bought Shoden because of the
strength of the South African business but
we saw the potential in the subsidiaries
particularly Nigeria
 We do not sell directly to Nigerian endcustomers but through partners
Ghana
Kenya
Nigeria
Uganda
Tanzania

26. CONCERNS IN NIGERIA
• International laws such as the US
Foreign Corrupt Practices Act, the
UK Bribery Act and export control
laws may apply to business
conducted in Nigeria
• Sanctions are severe for companies
and individuals breaching these
laws
• Security concerns
• High youth unemployment
• Power instability
• Infrastructure problems

27. MY RECOMMENDATIONS FOR DOING BUSINESS IN
NIGERIA
• Choose your partners carefully and conduct full due
diligence on potential distributors, resellers and agents
plus make sure you put comprehensive contracts in
place with anti-corruption clauses
• Conduct full due diligence when conducting
government business in terms of who is in the supply
chain of the goods and payments for the goods
• Check home country laws to see what they say about
foreign country investments
• If the business involves the use of foreign technology
then you need to register the technology with the
relevant
• Get to know your business partners and customers –
relationships are important in Nigeria so you need to
get to know who you are working with

28. MY PERSONAL VIEW OF THE PEOPLE……..
• Nigerian culture, is very polite so remember that a
Nigerian will not want to say no out of respect for
you
• Remember that Nigerians like to bargain and you
should expect to bargain and compromise at the
negotiating table
• At the start of a business discussion the
conversation may veer towards personal questions
such as questions about your family and interests. It
is a sign of warmth and respect
• The handshake is an important part of the meeting.
Again it is a sign of warmth and respect – don’t be in
a hurry to pull your hand away!
• Appoint and use established local advisors
particularly accountants and lawyers.

29. AND FINALLY
• Invest In Nigeria
• Enjoy The Country
• Be Careful
• Keep Going Back

30. THANK YOU