Governor Oborevwori Seeks to Better the Ease of Doing Business

Governor Oborevwori Seeks to Better the Ease of Doing Business.

No country or a state or city in a country, anywhere in the world, can have or enjoy a robust and sustainable economy without a good record of ‘ease of doing business,’ EDB.

In other words, ease of doing business largely determines the success, progress, growth, or development of any country, state or city in a country, economically speaking!

What is Ease of Dong Business?

Ease of doing business, as the name suggests, is what it says it is.

It simply means how easy or difficult it is for people to start and run a business in a country, state, or a city in a state.

Permit me to illustrate this definition with a simple and relatable example.

Let’s assume you want to start or establish an African restaurant, with your good knowledge of preparing African dishes.

If the country or city in a country where you want to set up the restaurant makes it simple for you to start your restaurant business, including getting the necessary permissions easily, not facing too many rules that are hard to understand, and makes paying of taxes simple for you – then that country or city has a good “ease of doing business.”

As simple as that!

A smoothly paved highway stretching into the horizon, depicting the ease of doing business

Furthermore, ease of doing business is just like what happens in the sporting world, where some sports have simple rules that are easy to follow, and easy to play and have fun, while others have lots of complicated rules that make it hard to play and not much fun.

Have you not noticed or observed this scenario?

You must have done so, even if you’re not a lover of sports.

A place where it is hard for you to start and run your business because there are too many difficult rules and other things to do cannot be said to have a good ease of doing business.

The better the ease of doing business in a place, the easier it is for people to start their own businesses and make them successful.

In summary, ease of doing business is simply the level of simplicity, efficiency, and convenience with which individuals and businesses can conduct economic activities within a particular region, country, state, or city.

The term, ease of doing business, is commonly used in the context of economic and business policy to assess and compare the business environment and regulatory framework of different places.

Who Determines Whether a Country, State, or City Has a Good Ease of Doing Business Status or Not?

The ease of doing business status of a country, state, or city is typically evaluated by different organisations or entities.

Prominent among such organisations is the famous World Bank Group, specifically through its “Doing Business” report.

World Bank Headquarters in Washington DC, USA

They look at various factors like how easy it is to start a business, obtain permits, register property, get credit, protect investors, pay taxes, trade across borders, enforce contracts, and resolve insolvency.

These assessments involve gathering information, studying laws and regulations, and conducting surveys among businesses and experts in different places around the world.

Other entities such as consultancy firms, research organisations, and government bodies might also conduct their own assessments or studies to determine the ease of doing business in a particular city or country.

So, the determination of whether a city or country has a good ease of doing business status is usually made by evaluating factors like laws, regulations, procedures, and the experiences of businesses operating in that location.

How Does the World Bank Group Rank Countries’ Ease of Doing Business?

The World Bank Group used to rank countries’ ease of doing business through its “Doing Business” report.

The Doing Business report assessed countries based on various indicators across different stages of a business’s lifecycle.

Some of these indicators included:

Starting a Business: Procedures, time, cost, and minimum capital required to start a business.

Dealing with Construction Permits: Procedures, time, and cost to obtain construction permits.

Getting Electricity: Procedures, time, and cost to obtain a permanent electricity connection for a newly constructed warehouse.

Registering Property: Procedures, time, and cost to transfer commercial property.

Getting Credit: Strength of legal rights and depth of credit information available to secure loans.

Protecting Minority Investors: Protection of minority investors from conflicts of interest in corporate governance.

Paying Taxes: Number of taxes paid, time taken, and total tax rate as a percentage of profits.

Trading Across Borders: Time and cost to export and import goods.

Enforcing Contracts: Time and cost to resolve a commercial dispute and the quality of judicial processes.

Resolving Insolvency: Time, cost, and recovery rate in insolvency proceedings.

Each country was ranked based on its performance on these indicators.

The rankings aimed to provide an assessment of the regulatory environment for businesses in various countries, making it easier for policymakers, investors, and entrepreneurs to compare and understand the business climate across different regions.

However, as of my last update, the World Bank faced criticism and controversies regarding the methodology and data accuracy in the Doing Business report, leading to the suspension and discontinuation of the report.

Therefore, the specific details of the methodology and ranking system might have changed or might not be available in the same format. It’s essential to check the World Bank Group’s official publications and reports for the most updated information on how they assess and rank countries’ ease of doing business.

What Is the Ranking of Countries in World Bank Group’s Record?

The Doing Business report typically ranked countries globally based on their overall ease of doing business and provided rankings for specific indicators such as starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.

Each country received an overall score based on their performance across these indicators, and they were then ranked relative to other countries.

For example, Singapore, New Zealand, and Denmark often ranked among the top countries in terms of ease of doing business, while other countries varied in their rankings based on their regulatory environments and business-friendly policies.

(from left to right) Tharman Shanmugaratnam, President of the Republic of Singapore, Mette Frederiksen, Prime Minister of Denmark, and Christopher Luxon, Prime Minister of Newzealand

However, it’s crucial to note that the Doing Business report faced criticisms regarding its methodology and data accuracy, leading to the suspension and discontinuation of the report by the World Bank Group.

Consequently, the rankings might not be available or might have changed since then. For the most up-to-date rankings or information regarding countries’ ease of doing business, it’s recommended to refer to the latest reports or publications by the World Bank Group or other relevant organizations.

The Ease of Doing Business in Nigeria

When it comes to the issue of ease of doing business, Nigeria is doing well, but not as good as Denmark, Newzealand, and Singapore.

While the country has made efforts to improve its business environment, there have been persistent issues hindering businesses and investors.

Here are some of those challenges:

Bureaucracy and Redtapism: Bureaucratic hurdles, complex regulations, and excessive red tape have been significant obstacles for businesses in Nigeria.

Cumbersome administrative procedures, obtaining permits, and dealing with multiple government agencies often lead to delays and inefficiencies.

Infrastructure Deficits: Inadequate infrastructure, including power supply, transportation networks, and access to reliable utilities, has posed challenges for businesses operating in Nigeria. Poor infrastructure affects operational efficiency and adds costs to business operations.

Restricted Access to Finance: Limited access to finance, especially for small and medium-sized enterprises (SMEs), has been a challenge. Difficulties in obtaining credit, high interest rates, and insufficient financial support systems hinder business growth and investment.

Security Concerns: Security issues, including instances of insecurity, particularly in certain regions, have impacted businesses. Security challenges affect investor confidence and the overall business environment.

Corruption and Governance Issues: Persistent corruption, weak governance, and inconsistent enforcement of regulations have also been concerns affecting the ease of doing business in Nigeria. Corruption can add to the complexity of doing business and deter potential investors.

Delta State Governor, Rt. Hon. Sheriff Oborevwori, identified most of these challenges on Monday, November 20, 2023, in his keynote address at the 2023 Federal Accounts Allocation Committee (FAAC) retreat with theme: “Creating a resilient economy through diversification of the nation’s reserve base” held at the Events Centre, Asaba, the Delta State capital.

The Nigerian government has shown a commitment to improving the ease of doing business, but sustained efforts are required to address the systemic issues hindering business growth and investment in the country.

Why Governor Sheriff Oborevwori Seeks a Better Ease of Doing Business in Nigeria

Governor Oborevwori is very keen in bettering the ease of doing business in Delta State and Nigeria at large.

Rt. Hon. (Elder) Sheriff F.O. Oborevwori, Governor of Delta State

Below are some of the reasons he sees to better the ease of doping business:

Starting a Business: It affects how easy it is for someone to start their own business.

If there are too many complicated rules or procedures, it might discourage people from starting businesses, which could limit economic growth and opportunities.

Business Growth and Success: An environment with good ease of doing business makes it easier for businesses to grow and succeed. Simplified regulations, efficient administrative processes, and transparent rules make it easier for businesses to operate smoothly.

Investment Attraction: Countries or cities with a good ease of doing business often attract more investors.

When it’s easier to start and run a business, investors feel more confident about investing money in that place, leading to more jobs and economic growth.

Innovation and Competition: A favourable business environment encourages innovation and competition.

When it’s easier to do business, new ideas and better ways of doing things can flourish, benefiting both businesses and customers.

Overall Economic Development: Countries or cities with better ease of doing business tend to experience overall economic development.

This means better living standards, more job opportunities, improved infrastructure, and a stronger economy.

International Relations: It can also impact a country’s or city’s relationships with other nations. A good ease of doing business status can improve international trade relationships and partnerships.

Therefore, it’s important for businesspeople to consider the ease of doing business in a city or country because it directly impacts their ability to start, operate, and grow their businesses, as well as the overall economic prosperity of that location.

How Can the Ease of Doing Business in a Country, State, or City Be Improved on or Made Better?

Improving the ease of doing business in a country, state, or city involves various reforms and actions across different areas.

Here are some of those ways to enhance the ease of doing business:

Simplified Regulations and Procedures: Streamlining regulations, licenses, permits, and administrative procedures can significantly reduce the bureaucratic burden on businesses. Clear, straightforward, and transparent rules make it easier for businesses to comply and operate.

Efficient Government Services: Improving government services related to business registration, obtaining permits, and tax compliance through online platforms or one-stop service centres can speed up processes and reduce red tape.

Enhancing Access to Finance: Creating better access to credit for businesses, especially small and medium-sized enterprises (SMEs), by improving banking systems, offering financial literacy programs, and facilitating easier loan procedures.

Tax Reforms: Simplifying tax systems, reducing tax rates, and making tax filing procedures easier and more transparent can encourage compliance and reduce the administrative burden on businesses.

Property Rights and Contract Enforcement: Strengthening property rights, enforcing contracts efficiently through a reliable judicial system, and providing dispute resolution mechanisms can enhance business confidence and security.

Trade Facilitation: Streamlining customs procedures, reducing tariffs, and simplifying import-export processes can encourage international trade and attract foreign investment.

Investment in Infrastructure: Developing quality infrastructure such as transportation, energy, and digital connectivity supports business operations and facilitates economic activities.

Education and Skills Development: Investing in education and skills training programs helps create a more skilled workforce, making it easier for businesses to find qualified employees.

Stakeholder Collaboration and Feedback: Engaging with businesses, stakeholders, and entrepreneurs to understand their challenges and gathering feedback to implement reforms that address their needs.

Continuous Monitoring and Evaluation: Regularly assessing the effectiveness of reforms and adjusting based on feedback and performance evaluations to ensure sustained improvements.

Improving the ease of doing business is an ongoing process that requires commitment, coordination among government agencies, policy reforms, and a conducive business environment to foster economic growth and competitiveness.

In conclusion, Governor Oborevwori’s commitment to enhancing the ease of doing business in Delta State and Nigeria at large reflects a critical understanding of the pivotal role it plays in fostering economic growth and prosperity.

Recognizing that a conducive business environment fuels innovation, attracts investments, and stimulates overall economic development, the governor’s proactive approach addresses persistent challenges hindering business growth.

The complexities of bureaucracy, infrastructure deficits, limited access to finance, security concerns, and governance issues are acknowledged hurdles that require sustained efforts and reforms.

Governor Oborevwori’s determination to streamline regulations, improve government services, enhance access to finance, and tackle corruption highlights a strategic roadmap toward a more business-friendly environment.

Moreover, the pursuit of simplifying tax systems, strengthening property rights, and facilitating trade aligns with global best practices aimed at encouraging entrepreneurship, fostering job creation, and driving sustainable economic expansion.

Improving the ease of doing business is not merely a governmental endeavor; it requires collaborative efforts involving stakeholders, entrepreneurs, and continuous monitoring to ensure the effectiveness of implemented reforms.

Governor Oborevwori’s vision underscores the significance of stakeholder engagement, skill development initiatives, and constant evaluation as integral components of the ongoing process to enhance the business landscape.

As Delta State and Nigeria continue their journey toward economic resilience and diversification, the governor’s dedication to fostering a more business-friendly environment stands as a testament to his commitment to driving long-term prosperity, attracting investments, and nurturing an ecosystem conducive to entrepreneurial success.

Ultimately, these collective efforts aim to propel Delta State and Nigeria into a new era of sustainable economic growth and global competitiveness.

Governor Oborevwori Seeks to Better the Ease of Doing Business. THE END

By Victor Victor O’Dyle, Web Manager to the Special Adviser to the Governor of Delta State on Investments

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