Nigeria has an environment that is extremely hostile to doing business
Regulatory and infrastructurally-induced challenges account for most of the problems faced by businesses in Nigeria.
This remark was made by the chamber’s Director of Research and Advocacy, Dr Vincent Nwani during a Breakfast Policy Dialogue organized by Initiative for Public Policy Analysis in Lagos.
Dr Nwani stated that the challenges of security, infrastructure and public policy instabilities are factors triggering business failure in the country.
“So many policies in Nigeria are hindering the nation’s drive for diversification. In all indicators, ease of getting credit, electricity, registering a business, resolving disputes, exporting and importing among others are challenges and we are not doing well at all,” said Dr Nweni.
“A lot of people are not doing business in Nigeria because of security and so many businesses have closed down because of insecurity. In terms of stability of laws and inconsistency of law, we are also ranked very low: 181 out of 191 countries.
“On infrastructure, whether it is power, road or rail, we are also one of the worst in the world. Our index is 177 out of 190 countries.
“And on economic competitiveness, we are 124 out of 140 from the .’’
The chamber also addressed the issue of multiplicities of taxes and regulatory bottlenecks encountered by businesses in Nigeria.
“From everything we look at, we are not doing well even though we are the largest country by population in Africa. I can tell you, regulation is the problem. The multiplicity of regulations, taxes and reforms are issues. “
“There are some sectors we count up to about 80 different types of taxes, especially in oil and gas and manufacturing. And this is why a lot of businesses are moving from formal to businesses that are invisible.’’
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