On this page, we’ll be looking at the ease of doing business in Nigeria. Just before we proceed it is important that you understand the concept – ease of doing business. The ease of doing business ranking is being compiled by the World Bank on a yearly basis and this ranking is notable among investors.
These particular list judges how businesses thrive in a country and how friendly it is to investors. This ranking promotes friendly competition between countries for instance in Africa Nigeria (the largest economy in Africa) has been battling with Rwanda which is said to have been one of the smaller economies in Africa.
In the latest ranking of ease of doing business in the world, Nigeria in a total of 190 countries ranked 131 which is commendable given the current economic state.
Nigeria came 15th on the list with regards to gaining credit which is a very important factor which the index ranks.
In the former list of ease of doing business Nigeria was 146 position and with the latest one, it shows Nigeria progressed with 15 steps. Also, countries like Jordan, Saudi Arabia, Bahrain, Togo, Kuwait Pakistan, Tajikistan, India, and China are also part of the top 10 global reformers.
Just like usual president Buhari and his administrators bragged a lot using the recent results of the ease of doing business in Nigeria.
but this does not settle the fact that this administration has a lot of loopholes with regards ease of doing business in Nigeria. There are some policies that have been put in place that makes doing business in this country very regrettable the current stance the closure of borders it affected the importation of several goods and put out some of those businesses.
There are still lots of problems to be addressed before saying that the ease of doing business in Nigeria is perfect, we will look at these problems later.
Just during the celebration of Nigeria’s independence on October 1st 2020 the immigration commission has ruled out a new set of visa policies for Nigerians seeking to travel out of the country. The new visa rules and regulations also targeted at making Nigeria a better place and increasing the ease of doing business in Nigeria.
Here some of the factors that impede ease of doing business in Nigeria:
Poor power supply
There has been an increase in electricity tariff by ending of September 2020 and this issue has meant a lot of people to complain bitterly about the poor power supply that we are getting in this country. The increment in the electricity bill does not come with equal increments in electricity supply.
In Nigeria, there is nothing like constant power supply and this factor alone organizes businesses why the small-scale ones who can’t afford the other alternatives for power supply end up producing too low or even shut down. Due to the poor supply of electricity which people rely on the alternative source of power supply which is a generator. It is said that out of 10 houses in Lagos State 9 possess power generator we should serve as an alternative for them.
you would hardly see a flourishing business where there is insecurity and Nigeria has lots of them. because of the poor security, we have in this country several investors are turning away because they are scared of losing their investment in a country where there is lack of adequate security especially in the northern part of the country.
Foreign expatriates that you see in the country always move with escorts because of the insecurity that is already in Nigeria, add a particular point in time in Nigeria foreign expatriates are being kidnapped on a daily basis and a huge amount of Ransom being demanded. Investors are scared they will lose their money in a country like this and they prefer to invest where there is peace.
One of the major factors that play a vital role in making tangible decisions on how businesses will operate in Nigeria is obviously the government. however the system is going to be is dependent on the government rules and regulations, this is because the government does not leave the decision making only to the businesses in the market.
Government policies ensure that businesses follow a rule and are in check. that’s the law that governs doing businesses in Nigeria and this is known as the companies and allied matters act (CAMA).
The reason why African countries are in the bottom list of the ease of doing businesses in the world it’s because of the strict guidelines and regulations. Take for instance in Nigeria, it is very difficult to set up a business. when you want to set up a business in Nigeria you will start looking for capital when you get capital you start looking for something else.
In Nigeria, it is nothing less than 2 weeks and up to 1 month to set up your business because of some regulatory policies that you have to go through. there was this time I needed to register an organization it took at least three months to get registered that is the delay that is being caused at the CAC in the registration of businesses. to ensure improvement in the ease of doing business in Nigeria some of these policies will have to be revised.
Bribery and Corruption
This has always being a major problem affecting the country. Nigeria has been struggling to be one of the best investment destinations in the country but one of the major obstacles that it is still facing to date is bribery and corruption.
The amount of bribe that passes through her nose before particular supervision or even construction comes in place in Nigeria is too much. Funds for public projects and expenditures have been embezzled and converted to private use.
It is safe to say that the development of the country is being stalled by this negative effect of bribery and corruption. Nigeria had ranked the 14th on the list of the most corrupt country in the world back in 2013. The administration of president Muhammadu Buhari is fully allowed to tackle bribery and corruption but because it eaten deep into the soul of the country’s economy it will be difficult to restore but this would be done gradually.