By Foster Obi
World Bank has highlighted the reasons why starting and executing a business in Nigeria may have improved progressively in Lagos and Kano states.
In one of its latest report on ease of doing business ranking, the Bank said that Nigeria made starting a business easier by reducing the time needed to register a company and improving online platforms. This reform applies to both Kano and Lagos, it said, adding that Kano also made starting a business easier by no longer requiring on-site inspections for business premises registration.
In other criteria highlighted by the Bank, Lagos made dealing with construction permits less costly by eliminating the Infrastructure Development Charge (IDC, the fee for construction permits) for warehouses. Nigeria made getting electricity easier by allowing certified engineers to conduct inspections for new connections. This reform applies to both Kano and Lagos. Lagos improved its land administration system by implementing a geographic information system.
Also Nigeria reduced the time to export and import by further upgrading its electronic system and by launching e-payment of fees. Lagos and Kano made enforcing contracts easier by introducing a pretrial conference as part of the case management techniques used in court. Kano also made enforcing contracts easier by issuing new rules of civil procedure for small claims courts, which limit adjournments to unforeseen and exceptional circumstances.
In 2019, World Bank noted as follows: Nigeria made starting a business easier by reducing the time needed to register a company at the corporate affairs commission and introducing an online platform to pay stamp duty. Nigeria made getting electricity easier by requiring that the distribution companies obtain the right of way on behalf of the customers and by turning on the electricity once the meter is installed. This reform applies to both Kano and Lagos. Nigeria (Kano) made property registration less transparent by no longer publishing online the fee schedule and the list of documents necessary to register a property.
Trading across Borders: Nigeria reduced the time needed to export and import by implementing joint inspections, the NICIS2 electronic system and around-the-clock operations at Apapa Port. This reform applies to both Kano and Lagos. Nigeria (Lagos) made enforcing contracts easier by issuing new rules of civil procedure for small claims courts which limit adjournments to unforeseen and exceptional circumstances.
Doing Business captures 294 regulatory reforms implemented between May 2018 and May 2019. Worldwide, 115 economies made it easier to do business.
The economies with the most notable improvement in Doing Business 2020 are Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India and Nigeria. In 2018/19, these countries implemented one-fifth of all the reforms recorded worldwide. Economies in Sub-Saharan Africa and Latin America and the Caribbean continue to lag in terms of reforms. Only two Sub-Saharan African economies rank in the top 50 on the ease of doing business; no Latin American economies rank in this group. Doing Business 2020 continues to show a steady convergence between developing and developed economies, especially in the area of business incorporation. Since 2003/04, 178 economies have implemented 722 reforms captured by the starting a business indicator set, either reducing or eliminating barriers to entry.
Those economies that score well on Doing Business tend to benefit from higher levels of entrepreneurial activity and lower levels of corruption.
While economic reasons are the main drivers of reform, the advancement of neighboring economies provides an additional impetus for regulatory change. Twenty-six economies became less business-friendly, introducing 31 regulatory changes that stifle efficiency and quality of regulation, according to the report by World Bank.
