Nigeria holds tremendous potential for business and investment, yet its performance in global ease of doing business rankings continues to highlight persistent challenges. The World Bank’s Ease of Doing Business Report has frequently underscored obstacles such as complex regulatory frameworks, insufficient infrastructure, and systemic corruption, all of which hinder entrepreneurial growth and foreign investment. Addressing these challenges is crucial to unlocking the country’s economic potential and ensuring sustainable development.
The ease of doing business serves as a litmus test for the economic environment. A business-friendly climate attracts investments, spurs innovation, and creates jobs. For Nigeria, where youth unemployment is alarmingly high and non-oil sectors need diversification, improving the ease of doing business is not optional but imperative.
One of the key bottlenecks for businesses in Nigeria lies in bureaucracy. Obtaining permits, registering companies, and navigating tax policies often involves excessive paperwork, delays, and opaque procedures. Simplifying these processes, as seen in Rwanda’s impressive business reforms, could significantly reduce the time and cost of starting and running a business in Nigeria.
Another pressing concern is infrastructure. Reliable electricity, transport networks, and digital connectivity are the bedrock of modern business operations. Yet, power outages and poor road networks remain severe impediments. Private-sector partnerships and sustained public investment in infrastructure can address these deficiencies, enabling businesses to thrive.
Security is another critical factor. Many potential investors are deterred by instability in certain regions, where insecurity affects the movement of goods and personnel. Tackling these issues requires a comprehensive strategy that strengthens law enforcement and addresses the root causes of instability.
Equally essential is addressing corruption, which inflates business costs and deters foreign investors. Transparent governance and the adoption of technology in regulatory procedures, such as e-governance platforms, can help eliminate under-the-table practices and foster accountability.
Several Nigerian business leaders and analysts agree on the urgency of these reforms. Dr. Adesola Adebayo, an economic analyst, recently stated, “The government needs to focus on actionable policies that remove barriers for businesses. Ease of doing business is not just about rankings; it’s about creating opportunities for millions of Nigerians.” Similarly, Uche Obi, an entrepreneur in Lagos, emphasised, “Starting a business in Nigeria requires more than capital. You need patience, connections, and sometimes luck to navigate the system. This must change if Nigeria is to fulfill its economic promise.”
The Nigerian government has taken commendable steps in the past, such as the establishment of the Presidential Enabling Business Environment Council (PEBEC). Initiatives like digitising the Corporate Affairs Commission (CAC) and simplifying port operations are noteworthy. However, these efforts need scaling up and rigorous enforcement to have a tangible impact on the broader business ecosystem.
Improving the ease of doing business is not just a policy imperative; it is a moral obligation to the millions of Nigerians striving for better livelihoods. By prioritising reforms in regulation, infrastructure, and governance, the government can create an environment where businesses flourish, investments grow, and economic prosperity is shared across the nation. This is the pathway to realising Nigeria’s potential as a true economic giant in Africa.
