Tuesday 14 February 2023

BUSINESS ENVIRONMENT: OVERCOMING LAND REGISTRATION CONSTRAINTS THROUGH THE GIZ EFFORTS... Part One

 



I identified in a previous publication on this platform that the business environment is the sum total of regulatory and non-regulatory frameworks that affect business operations in an environment. The frameworks are fundamentally the policies and laws: the institutional and regulatory conditions that govern business activities.

The Gesellschaft fur Internationale Zusammenarbeit is also called German Development Agency: GIZ. Over the years GIZ through the Pro-poor Growth and Promotion of Employment in Nigeria, referred to also as Sustainable Economic Development In Nigeria: SEDIN; has taken strategic steps targeted constantly at identifying Business Enabling Environment (BEE) constraints mitigating against business development in Nigeria. The Agency has after identifying the BEE constraints devoted resources, in some cases working in collaboration with international donor organization like the European Union (EU) to develop the capacity of both the public and private sector actors in Nigeria, to position them on a firm footing to address in collaborative manner identified BEE issues. The skills offered by the GIZ are designed to build the two parties (public and private sectors) to work together; and navigate Nigeria’s economy from aid dependency to what some segments of the Nigerian society refer to or qualify as economic Eldorado.

The above, which entails arousing the consciousness of the Nigerian parties to work collaboratively to open up Nigeria’s economic space through enhanced business activities, effective advocacies by the MSMEs who are expected to make genuine demands for policy reforms where necessary; and to work assiduously with the public sector, to raise structures that will guarantee ease of access to finance by the MSMEs in Nigeria have consistently received of the GIZ. Other areas of contribution by the GIZ include empowering MSMEs with financial literacy skills, and bringing the public sector up to play at the level of consciousness where they understand the need to work with the MSMEs to ensure availability of improved seedlings for agriculture. Support for the creation and management of various agriculture oriented Value Chain Groups, and improving market conditions and marketing activities; as well as encouraging export promotion and increasing Nigeria’s competitiveness in the ECOWAS Region are areas the GIZ has shown remarkable presence, made visible and valued input.

Clearly deductible from the above is the fact that GIZ activities in Nigeria are targeted at opening up the economy and throwing up massive job creation and wealth generation activities that will force the dwindling and obviously very weak Nigeria’s economy to vomit at different levels and stages the numerous viable business opportunities swallowed by it over the years.

Business registration, Obtaining Construction Permit, Registering property, and Enforcing Contracts are the Business Enabling Environment (BEE) issues identified by the World Bank Doing Business Survey, as the key aspects of the business environment in Nigeria. Beyond the three that the World Bank Business Survey identified; there are other BEE issues in Nigeria that the GIZ have tackled, or are tackling. They will be unveiled and discussed, in my subsequent publications. However Property registration is introduced below, but briefly and will continue in the next publication.

Property registration/Land Registration is discussed/presented here as one and the same. Property registration in a nutshell means obtaining a Certificate of Occupancy or C of O, which simply means obtaining the Governor’s consent, permit or approval for the portion of land that approval was sort and secured. Constraints in terms of BEE applies where for whatever reason any or both frameworks (regulatory or non-regulatory) affect the business environment negatively, in which case they become impediment or inimical to business activities. Apart from working against the interest of the MSMEs they become injurious to growth and sustainable development. They frustrate efforts of the MSMEs, derail their objectives and good intensions, and therefore limit their capacity as wealth creators and economic builders, having stopped them from taken maximum advantage of the opportunities that the environment provides economically. These constraints also deny the MSMEs not just the economic benefits that accrue from their economic activities and operations but render their noble works and contributions as the bedrock of the economy a nullity.


The consequences of the above include: low productivity, dwindling income and low standard of living. In terms of developing the local resources, checking rural-urban migration, and throwing up more profitable business ventures the economy suffers on account of the above too. In some cases closing shop is the aftermath of a constrained business environment. When this happens there is loss of jobs, rising unemployment level and increased poverty rate that lead to substantial loss of revenue through tax by the different tiers of government. Criminality of different forms, banditry and kidnapping and all other destructive tendencies become order of the day (new normal) where the MSMEs face enormous business enabling environment constraints.

Before concluding, let me say: no efforts at improving the business environment in Nigeria will be meaningful without commitment at overcoming BEE constraints and eliminating the consequences.  Thus, the approach adopted by the GIZ of focusing her efforts at helping the public sector to improve her services to MSMEs, and striving harder to ensure that the Private sector through the MSMEs are assisted to hone the skills of business relationships, marketing and recordkeeping, communication, financial literacy and goal setting, including advocacy, market survey and business planning etc, are worthwhile business development initiative necessary to open Nigeria’s economic space, diversify the economy and put the country on the path of growth and sustainable development. The impact of these in improving consistently the income situation of the MSMEs for increased job/employment creation and wealth generation abilities in a sustainable manner is better imagines…

Nnabugwu Chizoba

Please keep reading 


and join us in the next publication as we expose you to the huge achievements of GIZ in Plateau state, in the area of Property registration.

No comments: