Gombe, Sokoto, Jigawa top in ease of doing business report Gombe, Sokoto and Jigawa states have emerged the first three most business-friendly states on the country, according to a new report on the ease of doing business in states across Nigeria.
According to the report published by the Presidential Enabling Business Environment Council (PEBEC), the new “states ease of doing business survey” Abia, Edo, Zamfara, Taraba, and Delta have the most unfriendly atmospheres for businesses in the country.
PEBEC was set up in 2016 by President Muhammadu Buhari to remove critical bottlenecks and bureaucratic constraints to doing business in Nigeria,
The survey measured how the 36 states in Nigeria and the FCT have supported businesses with enabling infrastructure – electricity, security, primary health care, and transportation; transparency and access to information – investment promotion and states information structure; as well as regulatory environment – paying tax, starting a business, enforcing contracts, land and property acquisition and registration.
Also measured in the survey were skills and labour, that is, the level of technical and professional labour available and accessible in states.
The PEBEC report showed that the top three states had average scores of 7.69, 6.88, and 6.79 respectively, closely followed by Akwa Ibom and Bauchi that tied at the fourth position with an overall average score of 6.54. Kebbi (6.49), Anambra (6.35) and Katsina (6.14).
The federal capital city, Abuja, placed 17th on the list with an overall average score of 5.51and a poor showing (3.39) in regulatory environment which included land acquisition and registration.
Lagos placed 20th position with an overall average score of 5.28, having polled a score of 3.71 in infrastructure, 6.49 in transparency, 3.62 in regulatory environment, and 7.30 in skills and labour, while Ogun State placed 19th position.
Zamfara (3.54), Taraba (3.91), and Delta (4.32), Edo (4.38) and Abia( 4.48) were at the bottom of the table, in that order.
Secretary of PEBEC, Dr Jumoke Oduwole who is also the president’s adviser on ease of doing business, said, “It is expected that the report of the survey will serve as an information resource document for businesses and investors at home and abroad.”
According to the report, 998 Small and Medium Enterprises (SMEs) across the country were surveyed; 157 in the North-west, 85 in the North-east, 180 in the North-central, 314 in the South-west, 128 in the South-east and 134 in the South-south.
It stated that its main findings showed that “provision of electricity is a major pain point for businesses,” and that “only two states provide an average of 10 or more hours of electricity per day,” to
businesses in the country.
It further indicated that, “disruption of business activities by state agents is widespread, with only two states reporting the absence of disruption by state agencies.”
The report also explained that there is low trust in the ability of public security agents to prevent or resolve security incidents in the states, while investment friendly and funding strategies are not common in 26 states including the federal capital territory.
It highlighted that the regulatory environment in Nigeria is perceived to be generally unfavourable for businesses, adding that tax policies are still uncleared with multiple taxation.
“There are also opportunities to improve the turnaround time of judicial processes and processes related to property acquisition and talent development,” the report added.
