World Bank To Rank Nigerian States On Ease Of Doing Business
Nigeria’s 36 states and the Federal Capital Territory (FCT) will be ranked based on an assessment of the ease of doing business within each location for the period 2014-2018. This was disclosed on Thursday in a presentation to the National Economic Council (NEC) by the Honourable Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, and the Secretary to the Presidential Enabling Business Environment Council (PEBEC), Dr. Jumoke Oduwole.
The Subnational Rankings will be undertaken by the World Bank Group, with the Enabling Business Environment Secretariat (EBES) and the Nigerian Investment Promotion Council (NIPC) providing support to the state governments as they implement their priority reforms.
The eleven indicator areas to be ranked include four World Bank indicators and seven additional areas of interest that are governed or implemented by state governments. The World Bank indicators are Starting a Business, Enforcing Contract, Registering Property and Dealing with Construction Permits. The seven additional indicator areas include Trade/Investment & Marketing, Infrastructure, Access to Land Property, Regulatory Environment, Institutional support & business resources, Transparency & accessibility to Information and Security.
Unlike the global World Bank Doing Business Rankings which evaluates nations based on the performances of one or two major cities, the sub-nationals would rank all states, capture local differences, help regions compete and tell their stories, and provide replicable good practices.
The subnational process cycle which has already begun will culminate in the release of the report and rankings in the first half of 2018.
The National Economic Council (NEC) is chaired by Acting President Yemi Osinbajo (SAN) and comprises of the 36 state governors, the governor of the Central Bank of Nigeria (CBN), and other officials whose portfolios revolve around the economy. The Muhammadu Buhari administration has placed ease of doing business at the heart of its agenda. In July 2016, President Muhammadu Buhari established the Presidential Enabling Business Environment Council (PEBEC) with a mandate to remove bureaucratic and regulatory constraints to doing business in Nigeria. The Council is chaired by Acting President Yemi Osinbajo, SAN.
The 2018 Nigerian subnational rankings will be the fourth in the series, following similar efforts by the World Bank in 2008, 2010, and 2014. Since 2005, the World Bank Subnational Reports has benchmarked 438 locations in 65 economies.
WHY MEASURE AT SUBNATIONAL LEVEL?
There is a strong correlation between Ease of Doing Business Rankings and economic prosperity. The World Bank global Ease of Doing Business Rankings evaluates 190 countries across 11 indicator areas. However, depending on a country’s population, the World Bank collects data from only one or two cities in each participating country. In Nigeria, the two cities from which the Bank collects data are Lagos and Kano.
The sub-national rankings are more encompassing for the following reasons:
1. Data collection goes beyond just those two states to all 36 states and the FCT
2. Local differences are captured
3. Different states are able to compete and tell their stories
4. Best practices can be shared and success stories replicated.
SOME BENEFITS OF EASE OF DOING BUSINESS TO STATES
– Jobs and improved quality of life for citizens
– Competitiveness and investment readiness
– Improved efficiency and transparency