Professor Yemi Osibanjo |
It is appropriate that the
inter-ministerial committee will be headed by Professor Yemi Osinbajo with the Minister of Trade and Investment, Dr. Okechukwu Enelamah, as vice
chairman. Information available now is that it will include representatives of
the organised private sector which will avail it the benefits of experience,
while the government will ensure backing with political will and overall
direction.
The World Bank report is based on
the research of experts who identified specific areas resulting in Nigeria’s
challenges in the effort to improve the country’s ranking. These are given as
sloppy taxation system, electricity shortage, troubles with registering property
and bottlenecks to starting business. In a damning indictment, the report said
that, “Everything takes time in Nigeria.” On average, it takes a month to start
a business, compared with one week in Zambia; 908 hours to pay taxes; 10 weeks
to register property (at about 11 per cent of its value), as contrasted with
three per cent in Rwanda; and six months to get electricity, compared with one
month in Rwanda.
In the last decade of the last
century, many manufacturers shipped out of Nigeria and set up in neighbouring
countries mainly over the dearth of infrastructure necessary for effective
operations. In establishing Metal Box Toyo Glass factory in Agbara Estate in
1980, for example, the investors decided at the outset, to run the factory on
generators, as the furnace had to run non-stop for five years. Many
manufacturers do the same. Yet, they must rely on supply of automotive gas oil
(diesel) which could not be assured given the problems that are well known.
Nigerians are all too familiar with
the challenges of interstate commerce. Transporters report the hazards of
moving goods across the country. They are harassed by multiple agencies of the
three tiers of government. In many parts of the country, they dare not travel
by night. The road transport mode is burdened with more than 90 per cent of
haulage of raw materials and finished products. Yet the roads are in deplorable
condition, nationwide. This is an area of emergency all on its own. Since 1972,
studies and recommendations for a Highway Authority (for the funding and
management of this transport mode) have not been implemented due to lack of
executive will; especially by civilian ministers responsible for roads and the
civil servants who have not been supportive of the necessary reforms.
The problem of interstate commerce
cascades into cross-border trade. The report revealed that on average, it costs
$786 for compliance with requirements at Nigeria’s borders. In Kenya, the
corresponding figure is $143. As a result, the largest economy in West Africa
has not reaped the benefits of its leadership in the Economic Community of West
African States (ECOWAS).
It is tempting to question the
propriety of comparing a large country like Nigeria to Zambia, Rwanda, Ghana or
Kenya. The challenges are different. In computing its averages, the World Bank
researchers needed to recognise that property registration is a matter for the
states in a country like Nigeria, while business registration is a matter for
the Federal Government.
However, valid principles are applicable
across countries, with due cognisance for the peculiarities of each country.
So, Nigeria must imbibe good examples from other lands.
Thus, in proffering suggestions for
improving ease of doing business in Nigeria, the researchers drew on what has
worked in some of these African countries. Kenya climbed 21 places between 2014
and 2015 by making critical reforms leading to improved electricity supply and
access to business finance as well as changes in property registration
procedures.
For Nigeria, it was recommended
that a focus on improved taxation system and property registration would take
Nigeria 47 notches up to a ranking of 122 by 2019; towards achieving the
Nigerian government’s goal of rising to the first 100 by year 2020.
Nigeria must create an environment
to attract highly qualified persons who have excelled abroad as experts and
specialists in every field. It is a ray of hope that the minister responsible
for trade and investments is at the vanguard of the initiative to improve
Nigeria’s business environment. A positive sign in this direction is his
announcement that the Federal Government has resolved to implement the Nigerian
Industrial Revolution Plan launched in 2014 by the Goodluck Jonathan
administration, acknowledging that it is a comprehensive and useful document
which will be implemented taking into consideration the experiences and lessons
of the intervening years.
In its drive to attract investors
in a highly competitive global village, the government may also wish to
consider establishing an interstate commerce commission to work at improving
domestic trade. Nigeria has the potentials, and the will to realise those
potentials must be fostered. (Guardian)
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