How to handle business partnerships as a diasporan

Building a business partnership is tricky for anyone, but for Nigerians in the diaspora, the stakes are even higher. Whether you’re setting up a venture abroad or collaborating with partners back home, distance, cultural differences, and legal complexities can turn small misunderstandings into big problems. Here’s how to navigate partnerships with clarity and confidence:

Choose your partner like you choose your investments

Not everyone you trust socially is suited for business. Assess potential partners beyond friendship or family ties.

• Do they have a track record of delivering on promises?

• Are they financially disciplined and transparent?

• Do they understand the local market if you’re investing in Nigeria from abroad?

Run background checks and talk to past collaborators. A quick call to verify their business reputation can save you from months of regret.

Put everything in writing — even with family

Diaspora entrepreneurs often rely on relatives to manage projects back home. Unfortunately, this is where many partnerships fail.

• Draft a formal agreement detailing capital contributions, roles, profit-sharing, and exit terms.

• If you’re abroad, ensure agreements are legally binding in both jurisdictions (host country and Nigeria).

  
  

• Involve a lawyer — WhatsApp messages and “gentleman’s agreements” won’t hold up when conflicts arise.

Define roles and expectations early

Who makes financial decisions? Who handles day-to-day operations? Ambiguity breeds conflict.

• For partnerships abroad, clarify who deals with licensing, tax compliance, and immigration-related business issues.

• For partnerships in Nigeria, specify who monitors projects on-site and who handles overseas fundraising.

Use technology to stay connected and accountable

Distance is no excuse for poor oversight.

• Use project management tools like Trello, Asana, or HubSpot CRM to track progress.

• Agree on regular video calls for updates not just text messages.

• Maintain shared bank statements or accounting dashboards to ensure transparency.

Plan for conflict before it happens

Even strong partnerships face disagreements. Decide now how disputes will be resolved:

• Will you use mediators, legal arbitration, or third-party advisors?

• What happens if one partner wants to pull out?

• Include a buyout clause so no one feels trapped.

Respect cultural and legal differences

If your partner is abroad, understand workplace culture and compliance requirements laws on taxation, intellectual property, or hiring can differ sharply from Nigeria’s.

If your partner is in Nigeria, account for local realities like bureaucracy, power supply issues, and cash flow delays. Align your expectations with ground realities to avoid constant frustration.

Review the partnership regularly

Your business will evolve and so should your partnership.

• Revisit your agreement annually.

• Assess whether both partners are still contributing equally and aligned with the vision.

• Don’t be afraid to restructure roles as the business grows.

A diaspora business partnership can be a bridge between global exposure and local opportunity but only if handled professionally. Treat your partnership like a real company, not a casual arrangement. With structure, transparency, and proper legal safeguards, you can build something that thrives on both sides of the Atlantic.