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Business trip from Denmark via Poland to Nigeria

Jens-Christian Møller, President, Eryk Group

Read the original text in Danish click here

Translation from Danish chronicle:

While we are still waiting for the [Danish] government’s Africa plan, I would like to greet you from Africa and say that the Americans and Chinese have already seen the business opportunities in Nigeria, while the majority of Danish companies are conspicuous by their absence.

At the end of the last millennium, I was employed as CEO of KK Wind Solutions, which was in the process of internationalisation.  After a thorough analysis, it was clear to me that the arrow pointed towards the north-western Poland – specifically Szczecin.  KK Wind Solutions became the first Danish industrial enterprise in Szczecin and has grown from a turnover of less than 100 million DKK to over 5 billion DKK. Today, Szczecin has become a natural choice for industrial companies worldwide, and following Vestas’ significant investments in two large factories, it is set to become a future hub for the offshore wind industry and global green transition.

Danish industrial companies dominate the region with over 10,000 jobs, which greatly contributed to King Frederik X choosing Szczecin for his first official trip abroad after his inauguration.

Together with my partner, we founded Eryk Group in 2004, and we have been here ever since.

The arrow now points towards Nigeria

There is a clear analogy between the development that Poland has experienced  over the past 25 years and the challenges Nigeria now is facing. For the past 10 years, my partner and I looked beyond Europe’s borders to find the right bridgehead for our continued development. It has been a long process, and we have scrapped many plans, once we got the facts about the intended location. In 2017, we began to look at Africa as our future continent. We looked at North Africa and Sub-Saharan Africa in the east and west. In 2018, we made our first overall feasibility study together with two Danish Embassy Offices in West Africa. In 2019, we started employing West Africans in our organisation and now we have over 50 West Africans colleagues.  In 2023, together with the University of Southern Denmark, we made a feasibility study regarding establishment in Nigeria, where most of our employees come from. In fact, more than half comes from one Nigerian city – namely Lagos, where we established our own limited liability company at the beginning of 2024.

My experiences with Nigeria

It is difficult both to find and retain young European engineers and technicians. Whenever we search for new European technicians, we often receive only a single application. And in 2023, we had a dropout rate of over 25 percent within the first year. Not because the young people are dissatisfied – they just find out that they want something else.

In comparison, we employ an average of one Nigerian technical employee per week, and through our collaboration with universities and technical schools in Nigeria, we receive over 100 competent applications every month. In 2023, the dropout rate of young Nigerian employees was 0. Nigerians score significantly higher on technical competence tests than their European colleagues. Our corporate language is English and the Nigerians are native English speakers. The young Europeans we employ do not have the same level of  English at all. In general, I find our Nigerian employees to be well educated, ambitious and loyal. They adapt easily to our Danish company culture. In many ways, they are much easier to onboard than Europeans – they are simply far more adaptable than the rest of us.

My African Journey

It has been a long and expensive journey for the Eryk Group. We have ended up in a lot of dead ends because we knew very little when we started.  But as a family-owned business, we have held firm and have made money all the time while ”developing Africa.”  We have acquired some unique African competences, which we now see as a strength for future sustainable growth. 25 years ago, Poland needed pioneering Danish companies that were willing to take risks, with the expectation that, in the long run, they could recoup their investments and gain competitive advantages. Now the time has come for Nigeria.  At Eryk, we are happy to invite you in and share our knowledge. Join us on an exciting journey – the train is already moving – jump on!

Lagos now feels much closer to me. For the next 20 years of my working life, I will dedicate myself to my “African dream”. It is great to be a self-financed entrepreneur with the opportunity to embark on yet another exciting ”business journey ”. I enjoy being with my young African team.

The goal is to grow from 50 African employees we have now to over 1000 and to once again be the first-mover, as we were 25 years ago in Szczecin. Maybe in 20 years, I can enjoy my retirement in a rocking chair in Lagos, where I can sit in the sun and look out over the Atlantic Ocean. Even grown-ups are allowed to dream.

 

There is a clear analogy between the development Poland has experienced over the past 25 years and the challenges Nigeria now is facing.  For the past 10 years, my partner and I looked beyond Europe’s boarders to find the right bridgehead for our continued development.

 About Jens-Christian Møller

  • Educated engineer and MBA from Aalborg University.
  • Top Manager at IBM, then KK Wind Solutions and now Eryk Group, of which he co-founded 2004.
  • In 1988 nominated as Young Entrepreneur of The Year.
  • In 2018, received the Royal Medal of Honor and the Export Council’s diploma.
  • In 2021 granted honorary Citizenship of Poland by The President of Poland.
  • In 2023 nominated as Entrepreneur of The Year.

About Nigeria and Lagos:

  • Africa’s largest and fastest-growing economy.
  • Nigeria is in the same time zone as Denmark.
  • Population of over220 million people.
  • Annually, over 1 million IT professionals and engineers graduate with a bachelor’s degree or higher.
  • 75 percent of the population is under the age of 30.
  • The IT sector has an annual turnover of over 600 billion DKK.
  • In addition to oil, the country is rich in gold and many rare metals.
  • The Chinese own the majority of the mining industry.
  • One of the world’s most fertile countries. With proper farming, the land can be harvested and yield crops three times a year.
  • Most major airports are built by the Chinese.
  • Africa’s largest importer of milk powder. Most of this milk powder comes from Denmark.
  • A newly graduated engineer/tech specialist earns less than 1000 DKK per month.
  • Since the country has perhaps the world’s most unstable power supply (for many reasons), which naturally requires extensive electrical repairs and maintenance, a great many competent electricians are trained in the country. A skilled electrician earns less than 750 DKK per month.
  • All types of IT skills are present – even at a super high level.
  • IT is seen as the way out of poverty for many Nigerians – and as an opportunity for cross-border work – without having to migrate. Therefore, the young people are deeply involved  in IT and the development of “ecosystems”, that can lift large groups of people out of poverty.

Nigeria’s biggest challenge:

  • The above-mentioned salaries are low, but significantly higher than the average salary, which is less than DKK 400 per month. And the very worst part: 40 percent of the working-age population is unemployed.
  • Job creation is Nigeria’s biggest problem. It would be great if more Danish companies took responsibility here, as Nigeria has the competences and workforce that we need.

Lagos – Nigeria’s largest city:

  • Home to over 22 million people, and the population grows by more than one million annually.
  • Over 50 percent of Nigeria’s GDP is generated here.
  • Microsoft’s largest development hub in Africa is here.
  • All the major IT companies – including Oracle, Google, SAP, Salesforce, and Facebook -are present.
  • Some of the world’s largest tech startups are based here.
  • The city has the world’s fastest growing music and movie industry.
  • It takes about five hours by plane from the EU to Lagos – and there are daily flights.
  • The majority of the population are Christian.

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