From market uncertainty to a route into Nigeria.
Entering a new market is a significant commitment. For an HVAC manufacturer looking to expand into Nigeria, the first question wasn’t simply “Can we sell here?” It was: “Is there genuine demand, who will buy from us, what will they pay, and who can we trust to take our products to market?”
P23 Africa helped answer those questions before significant capital was committed — then supported the client in turning the opportunity into a functioning route to market.
Testing the Nigerian market before investing
The client, an HVAC manufacturer, was exploring expansion into Nigeria and wanted to understand the commercial opportunity before committing resources to establishing a presence.
They needed more than a market report. They needed evidence from the market:
P23 was brought in to test the opportunity and develop a practical route into the Nigerian market.
From demand testing to market entry
We tested the market
We designed an outbound demand-testing programme focused on real potential buyers and distributors. Rather than relying solely on surveys or secondary research, we went directly to the market.
We identified and engaged relevant businesses across the target market, including potential distributors, contractors and end users. The objective was to generate real commercial signal from real businesses.
The result was a much clearer picture of where the opportunity existed, and where it didn’t.
Turning conversations into market intelligence
The value wasn’t simply in generating leads. Every conversation provided information. We categorised responses to distinguish genuine commercial interest from general enquiries and non-engagement.
That allowed us to identify clear patterns across five vital commercial dimensions:
Customer Groups
Which customer segments were actively interested vs merely curious?
Price Benchmarks
What were businesses currently paying for comparable imported products?
Product Comparison
How did the client’s offering compare with what the market already trusted?
Objection Mapping
What logistical, currency, or technical concerns prevented deals?
Purchase Horizon
Which prospects had immediate requirements vs long-term cycles?
The result was a much more informed view of the Nigerian opportunity, based on conversations with the market rather than assumptions about it.
We identified and vetted distributors
Once the demand picture became clearer, the next question was how to get the product into the market. We identified potential distributors and assessed them against the requirements of the business.
This went far beyond compiling a generic directory of trading companies. We examined 10 critical operational factors:
Where appropriate, we also carried out direct reference checks with existing supplier relationships. The objective was to eliminate the risk of choosing a partner simply because they looked impressive on paper.
We facilitated the market entry
With the market opportunity validated and a suitable distributor identified, P23 facilitated the relationship between the manufacturer and the Nigerian partner.
P23 supported the client through the process of developing the distributor relationship, structuring agreements, and establishing the operational foundations for commercial activity in Nigeria.
We helped maintain visibility on the ground
Entering the market is only the beginning. Once products are in-market, the challenge becomes maintaining visibility over what is happening on the ground:
To support this, we implemented P23’s tracking software to provide greater operational oversight of activity in the market.
The system helps the client monitor activity through its agents on the ground, giving the business greater visibility while reducing some of the risks associated with managing a market remotely. It also creates a clearer view of opportunities, enabling the team to follow up on activity and maximise potential sales.
A market opportunity became a functioning route to market.
Through a combination of demand testing, market intelligence, distributor vetting, relationship development and operational oversight, P23 helped the client move through the key stages of Nigerian market entry:
And the client was able to enter the Nigerian market with significantly more information and visibility than they would have had from desk research alone.
What this means for businesses entering Nigeria
Market entry doesn’t have to begin with a major investment. There is a more practical way to approach the decision:
Find out what the market is actually saying before shipping containers or signing long leases.
Understand who is interested, what they currently buy and what they are prepared to pay.
Identify and rigorously assess the businesses that could help you reach the market reliably.
Use the right systems and local support to understand what is happening once you’re in-market.
This is how P23 approaches market entry: Understand. Validate. Connect. Execute.
We don’t believe market entry should be based on assumptions. We help businesses gather market intelligence, test commercial demand, build the right relationships and put the infrastructure in place to support execution.