The Nigerian Business environment is considered in this piece, as the aggregation of the regulatory and non-regulatory frameworks, activities, structures and initiatives that affect the operations, management and running of businesses and managing the behaviour of humans involved. Frameworks, in this context refer to the policies and laws, in Nigeria, guiding the operations of businesses, at the National, state and local government levels. That is, the institutional and regulatory conditions that govern business activities.
To understand the frameworks better, the attention of my esteemed reader is drawn to the World Bank “Doing Business Survey” that identified the frameworks and processes, of the business environment. For now, my interest is on three of the frameworks, under starting a business. They are:
- Business registration,
- Obtaining construction permit and
- Registering property,
Fundamentally speaking, Registering property or property registration means, obtaining the Certificate of Occupancy, also known as C of O, which simply means, obtaining the Governor’s consent, approval or permission.
Challenges, as used in the topic, represent administrative difficulties, bottlenecks and/or encumbrances that those investors, willing to invest in Nigeria, face, particularly, MSME investors. Their interest and matters that concern them are the core objective of this platform, being the major reason it was created.
A closer look at the three frameworks: Business registration, Obtaining construction permit and Registering Property, reveals they are issues that have enduring effect on a business: the emergence, survival, growth and sustainability . The way and manner they are handled, determine to a very large extent, the convenience or otherwise, the system is to the MSME investors and what happens thereafter.
In view of the above, I have presented below, some factors, and equally attempted to discourse their implications briefly, and use this medium to advocate that the issues be tackled, in the 36 states of Nigeria, and the Federal capital territory, Abuja, as inducement to those willing, able and committed to doing business in Nigeria, .
Those conversant with activities associated with starting a business in Nigeria, and are pretty sure of the workings of the various governments, in Nigeria, know that all the issues and the actions required, from start to finish, in terms of commencing and completing the processes involved, in the three identified frameworks, covered by the World Bank Doing Business Survey, are either domiciled or situated within the door step of the government, or her MDAs (Ministries, Department and Agencies). From the different experience shared, by past, and mostly investors frustrated by the system in recent time, they are unanimous in their mentioning of what they consider the major challenges, with regard to starting and completing activities associated with starting a business.
They revealed as core challenges the following:
- Number of steps (many)
- Slow processes
- Long duration (time to complete the process)
- Huge financial involvement (high cost)
It is common knowledge that where many steps are involved, and the processes are slow per step, it will lead to longer duration. The effect of this combinedtwo out of the three BEE issues, when added to the third factor: cost, the impact on productivity and performance, especially, when high cost per step, is the complain of parties at the receiving end, the outcome, naturally is an ad-mixture of inefficiency on the part of the government and her MDAs, and difficult business terrain, for the investors, with other very deadly implications for the economy: loss of jobs and skills, by many people, unemployment, poor wealth generation, low creative and innovative activities, poverty, rise in crime: insecurity, and other forms of criminal activities, including restiveness, by youths in particular, which presently are taking a hydra-headed dimension.
Looking at the Nigeria’s business/economic environment, against the backdrop of the challenges posed to the country, as identified already, the evident is overwhelming that attention needs to be giving the issues so far identified, to open up the economy, and halt the constantly widening, but unnecessary gaps, created largely by inefficiency, loss of man hour and manpower, resulting from laxity and poor management of both human and materials.
The idea behind this piece and the platform generally, is to draw attention to areas requiring urgent intervention and improvement, for new opportunities, more jobs, increased income through improved revenue generation by government and increased profits by the private sector, a win-win situation.
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