World Bank Doing Business Index (NG0005)
Overview
At-a-Glance
Action Plan: Nigeria National Action Plan 2017-2019
Action Plan Cycle: 2017
Status: Inactive
Institutions
Lead Institution: Federal Ministry of Industry, Trade and Investment
Support Institution(s): Corporate Affairs Commission, Nigeria Investment Promotion Council, Federal Inland Revenue Service, Bank of Industry, Nigerian Export Promotion Council, National Food and Drug Administration and Control, Federal Ministry of Power, Works and Housing, Transmission Company of Nigeria, Nigerian Energy Regulatory Commission, Standard Organization of Nigeria, Nigerian Information Technology Development Agency, Nigerian Communication Commission, Central Bank of Nigeria, Nigerian Customs Service, Federal Ministry of Water Resources, Federal Ministry of Transportation. Open Alliance, Financial Institutions, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, National Association of Small and Medium Enterprises, National Association of Small Scale Industrialists, Electricity Distribution Companies, Nigerian Economic Summit Group, Manufacturers Association of Nigeria, Bankers Committee
Policy Areas
Fiscal Openness, Infrastructure & Transport, Land Rights & Spatial Planning, Legislation & Regulation, Private Sector, Public Service Delivery, TaxIRM Review
IRM Report: Nigeria Implementation Report 2017-2019, Nigeria Design Report 2017-2019
Starred: No
Early Results: Did Not Change
Design i
Verifiable: No
Relevant to OGP Values: Access to Information
Implementation i
Description
This commitment seeks to initiate and implement reforms that will make it easier for the private sector to engage with government agencies involved with business process-related services by streamlining the existing processes using innovative technology. The commitment will encourage improvements in infrastructure that is critical to the success of businesses and promote timely and efficient service delivery in all business process-related services including business registration, licensing, taxation, applying for credit, extending credit facilities etc.
IRM Midterm Status Summary
5. To improve the ease of doing business and Nigeria’s ranking on the World Bank Doing Business Index.
Language of the commitment as it appears in the action plan:
“This commitment seeks to initiate and implement reforms which will make it easier for the private sector to engage with government agencies involved with business process-related services by streamlining the existing processes using innovative technology. The commitment will encourage improvements in infrastructure that is critical to the success of businesses and promote timely and efficient service delivery in all business process-related services including business registration, licensing, taxation, applying for credit, extending credit facilities etc.”
Milestones:
5.1 Move Nigeria up by at least 20 points on the World Bank Ease of Doing Business Index
5.2: Make process of Land documentation / obtaining titles easier
5.3: Improved coordination and collaboration between agencies of government involved in business process related services
5.4: Downward review of business registration and fees
5.5: Improve critical infrastructure including power transmission and distribution by establishing more power transmission and distribution and licensing fees stations, rail lines, inland waterways, etc.
5.6: Establish a registry of credit information to be accessible by financial institutions
5.7: Enact laws that allow lenders to access borrowers’ data in the credit bureau or credit registry
5.8: Develop road map for improving sectoral value chains for MSMEs
Start Date: January 2017 End Date: June 2019
Action plan is available here:
Context and Objectives
This commitment aims to improve the ease of establishing and operating a business in Nigeria.
“Ease of doing business” indicates how favorable an economy is for business operations. In the past, investors were easily turned away by the difficult process of registering a business, filing returns, and other business administration matters in Nigeria. This is evidenced by Nigeria’s poor ranking; Nigeria ranked 169 on the World Bank’s Ease of Doing Business Index in 2017 and 170 in 2016. [61] Prior to 2017, promoters of a business name were required to engage a Corporate Affairs Commission (CAC) accredited, chartered accountant, chartered secretary or lawyer to register such company on their behalf. [62] According to the director of compliance at the CAC, [63] the cost of setting up a business in terms of getting electricity, land, or rent is very high. There are also nine steps for getting new electricity connections to the national grid, all within a timeline of 198 days. [64] Obtaining land documentation within the time limit is not an easy task, as property usually takes about 77 days to register, coupled with submitting a sworn affidavit for conducting a title search. [65]
This commitment is relevant to the OGP value of access to information. The commitment supports the Presidential Order of May 18, 2017, requiring all government agencies to publish all necessary requirements to conduct businesses via online and paper format. [66] However, Commitment 5 does not seem to be relevant to the OGP values of public accountability and civic participation, as it is unclear how the milestones will positively affect government openness or improve government accountability, participation or engagement.
The Commitment’s activities will better facilitate establishing a business in Nigeria by enhancing the infrastructure required to enhance business performance and making government involvement in business processes more efficient and transparent. Although Milestone 5.1 is clearly verifiable, most of the other commitment’s milestones lack specificity. For example, Milestone 5.2 does not explain how the land documentation would be made easier to obtain, and it was unclear who would undertake a downward review of business registration and fees (Milestone 5. 4).
The commitment should have a minor potential impact. According to Ayokunu Ojeniyi (Enabling Business Environment Secretariat), the commitment has the potential to bring about change. Improvement in the World Bank’s Ease of Doing Business ranking, coupled with adequate, transparent, credit information available to financial institutions are expected to encourage the overall climate business, which in turn may incentivize the government to be more transparent. [67] The milestones addressed factors previously identified as hampering conducting business in Nigeria (critical infrastructure, business registration, access to credit), but the lack of specificity (specifying responsible agencies) mitigates the commitment’s potential impact.
Next Steps
This is an important policy goal which could be part of the country’s agenda.
If this is considered in future action plans it should have broader implementation. The government could form work plans that clearly indicate responsible agencies and the strategies for removing red tape during implementation. The government could also consider providing citizens with a platform to give opinions and make queries, and to hold the government accountable on the various elements that affect the country’s ease of doing business ranking.
Commitments
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Participatory Budgeting
NG0015, 2019, Anti-Corruption
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Implement Open Contracting and the Open Contracting Data Standard
NG0016, 2019, Access to Information
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Transparent Tax Revenue Reporting
NG0017, 2019, Fiscal Openness
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Open Contracting and Licensing in Extractives
NG0018, 2019, Access to Information
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Implement EITI Standard
NG0019, 2019, Anti-Corruption
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Establish Beneficial Ownership Registry
NG0020, 2019, Access to Information
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Strengthen Asset Recovery Legislation
NG0021, 2019, Anti-Corruption
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Implement National Anti-Corruption Strategy
NG0022, 2019, Anti-Corruption
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Improve Compliance with Freedom of Information Act with Focus on Records Management
NG0023, 2019, Access to Information
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Improved Compliance with Mandatory Publication Provisions Requirement (FOIA)
NG0024, 2019, Access to Information
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Implement Permanent Dialogue Mechanism
NG0025, 2019, Access to Justice
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Aggregate Citizens' Feedback on Programs
NG0026, 2019, E-Government
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Freedom of Association, Assembly, and Expression
NG0027, 2019, Civic Space
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Enhance Participation of the Vulnerable
NG0028, 2019, Capacity Building
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Implement New Computer Program in 6 Government Ministries to Improve Service Delivery
NG0029, 2019, Capacity Building
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Legal Instrument to Strengthen SERVICOM
NG0030, 2019, Legislation & Regulation
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Citizen Participation in Budget Cycle
NG0001, 2017, Access to Information
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Open Contracting
NG0002, 2017, Access to Information
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Extractive Sector Transparency
NG0003, 2017, Access to Information
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Tax Reporting Standards
NG0004, 2017, Fiscal Openness
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World Bank Doing Business Index
NG0005, 2017, Fiscal Openness
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Beneficial Ownership Register
NG0006, 2017, Anti-Corruption
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Anti-Corruption Informationi Sharing
NG0007, 2017, Anti-Corruption
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Asset Recovery Legislation
NG0008, 2017, Capacity Building
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Anti-Corruption Activity Coordination
NG0009, 2017, Anti-Corruption
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FOIA Compliance for Annual Reporting
NG0010, 2017, Access to Information
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FOIA Compliance for Disclosure
NG0011, 2017, Access to Information
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Permanent Dialogue Mechanism
NG0012, 2017, Fiscal Openness
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Joint Governmnet-Civil Society Legislation Review
NG0013, 2017, Fiscal Openness
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Technology-Based Citizens' Feedback
NG0014, 2017, E-Government