As Nigeria looks towards the future, the leadership of Bola Ahmed Tinubu, has garnered significant attention, given his track record of successful governance in Lagos State.
Tinubu’s presidency holds promises of economic growth and development, and one crucial area that his government can prioritise is improving the ease of doing business in Nigeria.
Nigeria has historically struggled in global rankings that assess the country’s preparedness for business and investment. In previous years, Nigeria ranked poorly, reaching as low as 169 out of 190 countries in 2016 and 145 in 2017.
In the World Bank’s Ease of Doing Business Index 2020, Nigeria ranked 131 out of 190 countries, showcasing the significant hurdles faced by businesses operating within the country.
These rankings underscored the need for significant improvements in the business climate to unleash the country’s economic potential. The adverse trend not only deterred foreign direct investment (FDI) but also dampened business confidence. However, prior to the World Bank’s suspension of the ranking exercise in June 2020 due to data irregularities, Nigeria showed signs of progress. The World Bank acknowledged improvements in the business environment, attributing them to the operationalisation of a new electronic platform integrating the tax authority and the Corporate Affairs Commission (CAC).
Additionally, the facilitation of electricity connections through certified engineers and the implementation of efficient commercial litigation for smaller cases were recognised as positive steps.
The establishment of the Presidential Enabling Business Environment Council (PEBEC), headed by former Vice President Yemi Osinbajo, marked a significant milestone in the pursuit of a more conducive business climate. Over the past three years, PEBEC spearheaded more than 140 reforms aimed at opening up the business space and facilitating smoother business operations for both local and foreign enterprises. Notable achievements include the ability to reserve a business name within four hours, complete online company registration within 24 hours, and obtain electronic visa-on-arrival approval within 48 hours.
However, despite the progress made, substantial hurdles remain on the path to achieving a significant milestone in Nigeria’s ease of doing business. With President Tinubu assuming the responsibility of overcoming these challenges, the business community eagerly awaits his leadership and strategic reforms.
Stakeholders across various sectors highlight the urgent need to streamline bureaucratic processes. This entails simplifying administrative procedures, reducing the number of regulatory requirements, and improving the efficiency of government agencies involved in business-related transactions. Such reforms will help minimise delays, enhance transparency, and alleviate the burden placed on businesses seeking to navigate complex bureaucratic systems.
Peter Elumba, a stockbroker, highlights bureaucratic red tape and excessive regulations as major obstacles hindering business operations in Nigeria. He suggests that Tinubu’s government should streamline bureaucratic processes, simplify regulatory frameworks, and eliminate unnecessary procedures.
Elumba emphasised that comprehensive regulatory reforms, the digitisation of government services, and the establishment of a centralised one-stop shop for business registration and permits can significantly reduce administrative burdens, making it easier for businesses to operate.
Nathaniel Charles, a barrister practicing in Port Harcourt, emphasised the need for a robust legal framework to enhance the ease of doing business. He suggested that Tinubu’s government should prioritise strengthening the rule of law, enhancing contract enforcement, and promoting transparency in commercial transactions.
Charles recommended reforms in the judiciary system, such as expedited commercial dispute resolutions and the establishment of specialised commercial courts. He believes that robust enforcement of intellectual property rights will provide businesses with confidence and attract both domestic and foreign investors, ultimately fostering economic growth.
Dr. Gbenga Falusi, an economist at Adeleke University, highlighted the critical role of infrastructure development in improving the ease of doing business. He emphasised that Tinubu’s government should prioritise investments in power generation and distribution, transportation networks, and digital connectivity.
Falusi argued that investment in infrastructure will reduce the cost of doing business, improve logistics and supply chains, and facilitate access to markets. He suggested that public-private partnerships and attracting foreign direct investment can be instrumental in funding and implementing infrastructure projects.
Dr. Nelson Nkwo, a lecturer at the Department of Insurance, Ebonyi State University, stressed the importance of access to affordable finance for businesses. He suggested that Tinubu’s government should implement policies that promote financial inclusion, encourage lending to the private sector, and support the growth of small and medium-sized enterprises (SMEs).
Nkwo recommended the establishment of credit guarantee schemes, simplification of loan application processes, and incentivisation of banks to provide credit to SMEs. He also advocated for the development of alternative financing mechanisms, such as venture capital funds and angel investor networks, to foster innovation and entrepreneurship.
Dr. Gbenga Olaleye, an economist at Cashlinks, emphasised the need for collaboration between the public and private sectors to create an enabling business environment.
He suggested that Tinubu’s government should encourage public-private partnerships (PPPs) by providing incentives, establishing clear frameworks, and facilitating dialogue between stakeholders.
Olaleye believed that PPPs can leverage the expertise and resources of both sectors to implement infrastructure projects, drive innovation, and enhance service delivery. This collaboration will promote efficiency, accountability, and effective governance, benefiting businesses and the overall economy.
NATIONAL ECONOMY notes that improving the ease of doing business in Nigeria is essential for attracting investments, fostering entrepreneurship, and driving economic growth.
President Bola Tinubu, has the opportunity to prioritise reforms and policies that address the key challenges faced by businesses operating in Nigeria and the insights and recommendations provided by stakeholders offer a roadmap for transformative changes that will improve the ease of doing business in the country.
