- 10:49 am May 16, 2016
Looking to start a business in Nigeria?
The World Bank Group released its 13th flagship report- Doing Business 2016, within 189 nations of the world. This report measures regulatory quality and efficiency among the focus countries. It compares annual business regulations and domestic firms and focuses on these ten constraints:
This year’s report presents data for 189 economies and aggregates information from 10 areas of business regulations. It records all the formal procedures required to start up a business; dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across border, enforcing contracts and resolving insolvency—to develop an overall ease of doing business ranking.According to the Country data provided in the report, Nigeria was ranked based on the ease of doing business, Dealing with construction permits, Getting Electricity and Registering for a property.
The Report describes Nigeria as one of the worst places to do business in the world, as it dropped from the 170th position to 169th of 189 Countries in 2016 with the ease of doing business in the world.
The Doing Business 2016 Report recognized Lagos and Kano as the two biggest cities for business operations in Nigeria, and it’s ranking for starting business dropped eight places from 131st in 2015 to 139th.
Dealing with construction permits: 175 of 189 Economies.
Getting Electricity: 182 of 189 Economies, Nigeria fell a rank lower.
Registering Property: 181 of 189 Economies. The Report, however, shows it’s easier to register a property in 2016, this indicator improved by four places from 185th to 181st. A practical approach was the reduction of the consent fee and stamp duty paid for a property transfer.
Although the World Bank might not extensively capture the rigors of doing local businesses in Nigeria, with issues of multiple taxes and others, there is a need for the States and Federal government to encourage the private sectors by investing and creating incentives for business growth at both levels. The Nigerian Embassies should be compelled to do more than passport and visa services but also promote trade opportunities to the country.