What is it about ease of doing business in Nigeria?
Starting a business in Nigeria can be an arduous task. The country has a complex business environment that requires a lot of paperwork and permits, which can take months to obtain. However, in recent years, the Nigerian government has taken steps to improve the ease of doing business in the country.
What is the Ease of Doing Business in Nigeria?
The Ease of Doing Business (EODB) index is a measurement of how easy or difficult it is to start and operate a business in a particular country. The World Bank has been publishing the EODB report since 2003, and it assesses countries based on ten indicators, including starting a business, getting credit, paying taxes, and enforcing contracts.
Nigeria’s performance on the EODB index has been mixed over the years. In 2010, Nigeria ranked 125th out of 183 countries surveyed. However, in 2021, Nigeria moved up to 131st out of 190 countries. While the country’s ranking has improved, it still has a long way to go to make it easier to do business in Nigeria.
Factors Affecting the Ease of Doing Business in Nigeria
Several factors affect the ease of doing business in Nigeria, including corruption, poor infrastructure, and a lack of transparency in government policies. Corruption has been a significant issue in Nigeria, and it affects all sectors of the economy, including business. Bribes and other forms of corruption make it difficult for entrepreneurs to start and operate businesses in the country.
Another factor that affects the ease of doing business in Nigeria is poor infrastructure. Nigeria’s infrastructure is in poor condition, and this makes it difficult for businesses to transport goods and services. The country’s road network is in a state of disrepair, and there is a shortage of reliable electricity and water supply.
Finally, a lack of transparency in government policies also affects the ease of doing business in Nigeria. Government policies and regulations can change quickly, making it difficult for businesses to plan and invest in the country. Furthermore, the bureaucracy involved in obtaining permits and licenses can be slow and time-consuming.
Improving the Ease of Doing Business in Nigeria
Despite the challenges facing businesses in Nigeria, the government has taken steps to improve the ease of doing business in the country. In 2017, the government launched the Presidential Enabling Business Environment Council (PEBEC) to address the challenges faced by businesses in Nigeria. The PEBEC is responsible for implementing reforms that improve the ease of doing business in Nigeria.
One of the key reforms implemented by the PEBEC is the implementation of an online platform for business registration. The platform, called the Companies and Allied Matters Act (CAMA), allows businesses to register online and obtain their business registration numbers within 24 hours. This has significantly reduced the time and cost of starting a business in Nigeria.
The government has also implemented reforms in other areas, such as tax administration, access to credit, and contract enforcement. The government has simplified tax payment procedures, implemented a centralized credit reporting system, and established a small claims court to handle contract disputes.