Nigeria seeks to boost investor confidence

Nigeria's economic landscape has seen significant developments in recent times, with the government focusing on enhancing the ease of doing business and boosting investor confidence. Last month, the country's acting president signed three executive orders as part of its initiative to create a conducive business environment. Muda Yusuf, the Director General of the Lagos Chamber of Commerce and Industry, shed light on the progress and challenges of these initiatives in a recent interview on CNBC Africa. The implementation of the ease of doing business program has been met with positive momentum, primarily driven by the political will and commitment from the government. Nigeria's approach recognizes that the concept of ease of doing business is fluid and requires continuous adaptation in response to evolving challenges and opportunities. Yusuf highlighted the establishment of the Presidential Enabling Business Environment Council as a dedicated institution to address business-related issues, offering a platform to escalate concerns and streamline bureaucratic processes. The executive orders issued by the government cover various aspects such as business registration, bureaucratic procedures, and visa issuance, signaling a comprehensive approach to business facilitation. However, Yusuf emphasized that while progress has been made, there is still much to be done, especially in critical areas like the country's port operations. Nigeria's ports have long been a focal point for reform discussions due to inefficiencies and vested interests benefiting from the status quo. Despite ongoing efforts to drive change, obstacles remain, underscoring the need for stakeholder collaboration and sustained pressure on authorities to implement reforms effectively. The interview highlighted the role of states in creating a conducive investment climate, with increasing competition among regions to attract investment and generate revenue. While some states have made strides in improving their business environment, there is a disparity in commitment and implementation compared to the federal level. Legislative amendments and policy reforms at the state and federal levels are crucial to address key issues like tax policies, land permits, and regulatory frameworks affecting businesses. Yusuf emphasized the importance of operationalizing legislative changes to ensure their effective implementation and enforcement. The interview also touched upon the challenges of seeking legal redress in Nigeria, with concerns around lengthy and costly legal processes deterring businesses from pursuing legal recourse. Yusuf highlighted the need for institutional reforms and transparency to streamline dispute resolution mechanisms and enhance trust in the legal system. The arbitrary exercise of discretionary powers by agencies like customs was identified as a significant issue affecting businesses, leading to delays, financial losses, and operational uncertainties. Addressing these challenges requires a concerted effort to promote transparency, accountability, and consistency in regulatory enforcement across government agencies. While acknowledging the need for continued reforms, Yusuf expressed optimism that Nigeria's business environment can improve with sustained commitment, collaboration, and effective implementation of policy measures. As the country strives to enhance its ease of doing business rankings and instill investor confidence, addressing systemic challenges and fostering a business-friendly ecosystem will be key priorities for Nigeria's economic growth and stability.