Buyer guide

How to evaluate ERP options for your organisation

Evaluate ERP options against your own processes and Nigerian requirements, with scripted demonstrations and a weighted scorecard, before comparing prices. The right system fits how you work, at a cost you can sustain, with a partner who can support it.

The short answer

Do not start with feature lists or price quotes. Start with:

  1. Your key processes, written as scenarios ("quote to cash for a custom order").
  2. Nigerian requirements: VAT and withholding tax, currencies, payroll deductions, record keeping, data location.
  3. A shortlist of three or four that fit your size and industry.
  4. Scripted demonstrations of your scenarios, not the standard demo.
  5. A weighted scorecard completed by the people who will use the system.
  6. Five-year cost of ownership, including implementation, support and exit.
A note on fairness. We implement our own Prometheus ERP, built on the open-source ERPNext, and also work with other platforms, so this checklist is vendor-neutral. Common choices for small and mid-sized organisations in Nigeria: ERPNext-based systems, Oracle NetSuite, Microsoft Dynamics 365 Business Central, Sage and industry-specific systems, each a good fit for some and a poor fit for others. Licence prices change with edition, users and negotiation: get current quotes and treat figures as estimates in naira (or US dollars where a licence or service is priced in dollars).

Step 1: Write your key scenarios

Pick five to eight end-to-end processes. Script each with realistic data and at least one awkward exception; the scripts become your demonstrations.

  • Lead, quote, order, invoice, payment
  • Purchase request, order, receipt, supplier payment
  • Stock moves, counts and adjustments
  • Production or project, plan to cost
  • Month-end close and reporting
  • Returns, credit notes, warranty claims

Step 2: Nigerian requirements

  • VAT and withholding tax: VAT (currently 7.5 %), WHT, exempt and zero-rated items, reports.
  • Currencies: naira, US dollars or others; exchange rates and revaluation.
  • Languages: English usually enough; any screens or documents in another language?
  • Payroll: inside the ERP or connected; PAYE, pensions, statutory deductions and schedules.
  • Payments and banking: reconcile transfers, card and wallet settlements, customer channels.
  • Record keeping: retain and export records in a readable electronic format.
  • Localisation: Nigerian functionality from the vendor itself, or a partner app?
  • Data location and protection: hosting, backups, where support staff access data from.
  • Power and connectivity: behaviour in power cuts and link failures; how quickly users resume.
  • Industry rules: lot tracking, health information or CBN rules for financial services.

Withholding tax is deducted from supplier payments or suffered on your own invoices; ask about any e-invoicing requirements that apply to you, and confirm current rules with your accountant and the Nigeria Revenue Service. Many organisations buy in dollars and sell in naira: check how rate differences are recorded. Pension contributions fall under the Pension Reform Act. Keep records as long as your accountant and the authorities require. The Nigeria Data Protection Act 2023 (NDPA) sets rules for transferring personal data outside Nigeria (NDPC guidance). Microsoft publishes a list of countries with local functionality for Business Central: ask every vendor about Nigeria, ask to see it working, and look for offline-tolerant stock and point-of-sale entry.

Not tax or legal advice: confirm tax set-up with your accountant.

Step 3: Evaluation criteria

CriterionWhat to check
Process fitHow much of each scenario works by configuration alone? The rest: workaround, add-on or custom code?
Deployment and hostingVendor SaaS, partner hosting, or your own cloud or servers; with no major public cloud region in Nigeria, usually a local data centre or a region abroad (on-premise vs cloud ERP)
Upgrades and customisationRelease frequency, effect on your customisations, customers on the current version
IntegrationE-commerce, CRM, banking, payroll, shipping; a documented API (for example NetSuite's REST web services); is API access extra?
ReportingReports without a developer? Ask to see your month-end pack rebuilt
Permissions and auditAccess by role, company, location or document type; what is logged, who sees it
Implementation partnerMatters as much as the software: configuration, migration, training, support (choosing a provider)
Cost of ownershipFive years of licences or hosting, implementation, migration, integrations, training, support, staff time, upgrades; model exchange-rate effects on dollar quotes
ExitExport all data, with history and attachments, in a usable format
Notes on ERPNext

Open-source systems such as ERPNext can be self-hosted or hosted by a provider: more control over data location, but someone must be responsible for hosting, backups and updates. ERPNext publishes its releases openly, so you can check the release pattern yourself, and manages access through role-based permissions.

Step 4: The weighted scorecard

CriterionWeight (1 to 5)Option AOption BOption CNotes and evidence
Fit with scripted scenarios
Nigerian tax, currency and payroll needs
Reporting without a developer
Integration and API access
Permissions and audit trail
Hosting, data location and power resilience
Upgrade path and customisation impact
Implementation partner and support
Five-year cost of ownership (estimates in naira or US dollars)
Data export and exit
Weighted total
  • Each option was demonstrated with your scripts and sample data.
  • Scores came from future users, not only the project lead.
  • Similar-sized reference customers in your industry were contacted per finalist.
  • Every cost assumption is written down, including exclusions.
Six questions to ask every vendor and implementer
  • Which of our scenarios need customisation, and what does that do to upgrades?
  • What does a typical implementation of our size include, and what is excluded?
  • Who owns the configuration, custom code and documentation at the end?
  • How is support provided after go-live, and how are response targets set?
  • Can we speak to two customers in Nigeria or elsewhere in West Africa with similar needs?
  • How do we get all of our data out if we leave?

Limitations

A checklist cannot replace a careful look at your processes. If they are unclear or disputed, fix that first: any ERP will expose it. Replacing a system? Plan the move early with the data migration readiness guide.

Next step

For an independent view on your shortlist or help running scripted demonstrations, see ERP implementation; for an ERPNext-based system, see Prometheus ERP.

Sources and further reading

Product capabilities and guidance change. These are the primary sources this article relies on, checked on the review date above.

  1. What is ERPNext?, ERPNext documentation (Frappe)
  2. ERPNext releases, Frappe (GitHub)
  3. Role Based Permissions, ERPNext documentation (Frappe)
  4. Local functionality and localization strategy (Business Central), Microsoft Learn
  5. Overview of SuiteTalk REST Web Services, Oracle NetSuite Help Center
  6. Nigeria Data Protection Commission, Nigeria Data Protection Commission (NDPC)

This article is general information, not legal, accounting or security advice for your specific situation. Examples are hypothetical unless stated otherwise.

Talk to Promatics

Get a straight answer for your situation

General advice only goes so far. Tell us about your environment and we will tell you what we would do, what it would cost and what to watch out for.

  • A named specialist who owns the outcome, not a chat window
  • Advice checked against your actual systems, contracts and risks
  • Written scope and costs in NGN before any work starts