The lack of diversification in the Nigerian economy is among the country’s biggest challenges, according to AfriCapital CEO Dele Babade. The head of the financial advisory firm said on Thursday that this was constraining trade with SA, adding that compared with Nigeria, SA had a long history of dealing with multinationals. Speaking at the South Africa-Nigeria Banking and Finance Forum 2016, he said both SA and Nigeria had their own comparative advantages, but it was difficult for Nigerian companies to enter markets and operate against established brands, many of which were South African. There was a need for Nigerian companies to find their own competitive advantage, Babade said. "Nigerian music and entertainment is crossing borders and SA can’t replicate that." Babade said Nigeria needed to move up the value chain, instead of just exporting raw materials.
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