Nigeria’s economic environment is addressing a range of challenges, as highlighted in a “Baseline Report on Priority Legislative Actions to Foster a Business Enabling Environment, “which was jointly produced by the Ernest Shonekan Centre and the Policy and Legal Advocacy Centre.
The report, which received support from the Foreign, Commonwealth & Development Office, points to structural and regulatory hurdles that are holding back transformation in Africa’s largest economy. Despite Nigeria’s sizeable consumer market, young population, and natural resources, businesses face “high-cost and high-risk conditions, “the report noted.
Issues such as erratic electricity, underdeveloped transport infrastructure, restricted access to finance, foreign exchange crunches, and soaring inflation are persistent problems.
Additionally, insecurity, skill shortages, and regulatory uncertainty exacerbate the operational difficulties for firms.
The report also mentioned the complexities of overlapping regulations, frequent policy shifts, poor coordination between agencies, and uneven execution at subnational levels, which it says increase compliance costs and create investor uncertainty. Despite the improvements in business registration processes and administrative efficiency brought about by the Presidential Enabling Business Environment Council and the Business Facilitation Act, the Nigerian Economic Summit Group (NESG) highlighted that significant gaps remain. At the presentation of the report, Nnanna Ude, a board member of the Ernest Shonekan Centre, noted that Nigeria’s economic growth has stabilized at approximately 3 to 4 percent in recent years, driven largely by non-oil sectors.
However, he cautioned that structural weaknesses continue to restrict the expansion of the private sector. Ude emphasized that macroeconomic reforms are not enough without robust legislative and regulatory frameworks.
The report attributed many of the business challenges to gaps within Nigeria’s legal and regulatory systems, such as conflicting provisions across laws, overlapping regulatory mandates, inadequate enforcement capacity, and flaws in legislative processes. Kyari Bukar, chairman of the Ernest Shonekan Centre, highlighted that the review encompassed critical sectors including governance, the digital economy, trade, infrastructure, energy, climate policy, and the financial system. Addressing these legal gaps is crucial for enhancing investor confidence, he.
The report advises specific legislative reforms to ensure policy consistency, bolster regulatory coordination, and improve implementation. Without these changes, it cautions, Nigeria could face continued subpar performance in attracting long-term investments and achieving sustainable economic growth.
*Additional reporting by ImNews | Sources consulted: 5*
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By This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Segun Adeyemi
