4 Ways Government Makes Doing Business Difficult In Nigeria
Governments are supposed to be business enablers.
But in Nigeria they have the tendency to become cogs in the wheel of progress. This has recently gained the attention of the present government.
They now want to tackle those monsters that toughing the ease of doing business.
This is part of the reasons the Acting President signed several executive orders expected to improve the ease of doing business.
Despite those, there remains a ton of factors that continue to make it difficult for businesses to thrive in Nigeria.
These were compiled by the council of Lagos Chamber of Commerce and Industry and made available to Bounce News.
1. Naira Liquidity Challenges: In simple language, this means lack of Naira in the financial system. Ba Kudi
This is caused by the mopping of naira cash from the financial system by the regulator, the central bank of Nigeria, CBN.
The CBN's policy is aimed towards effective management of cash in circulation. But the system is working against some businesses as some companies cannot get enough naira cash that they need to buy dollars and do their business.
The Council of LCCI in their communique believes that “the tight monetary policy stance and the increasing crowding-out effect of the private sector by government borrowing in the financial system is taking a toll on businesses and needs to be addressed.
“The council stresses the need for financial system liquidity to be relaxed.”
2. Shutting down of Base Stations and Vandalization of Telecoms Infrastructures: In Nigeria, the several tiers of government are in a fierce struggle to generate revenue.
Most of the time, they constitute a menace to businesses in the process.
For instance, telecoms base stations owned by operators get shut down by the state and local council authorities frequently in their drive for Internally Generated Revenue.
This has affected the quality of service delivery by many telecoms operations.
The LCCI council in the communique also noted that the prohibitive costs imposed on telecoms companies for Right of Way (ROW) for the laying of telecoms cables is going beyond roof tops.
3. High Cost of Imports: In Nigerian ports, importers are still being charged indiscriminately, making the cost of imports prohibitive.
The additional cost is indirectly carried by consumers – every day Nigerians who are struggling to survive.
The indiscriminate charges at the ports, according to the LCCI communique, is as a result of the frequent disregard of the Pre-Arrival Assessment Report, PAAR issued by the Customs Headquarter.
“The use of discretionary valuation by Customs officers at the port is not consistent with the vision of this administration to improve the ease of doing business,” the communique said.
4. Presence of Customs Officers on the Highways: A lot depends on the operations of customs as far as ease of doing business is concerned.
The presence of officers of the Nigeria Customs Service on the highways stopping containers and demanding fresh valuation raises issues.
This has caused profound frustration to many business owners. The LCCI Council has also expressed concern over the practice and requests that this be stopped.