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There are only 20 countries in the world where it is harder to do business than in Nigeria

AP Photo/Sunday Alamba, File
Doing business in Nigeria isn’t always a sweet deal.
Published Last updated This article is more than 2 years old.

Nigeria, Africa’s largest economy, has long been touted as one of the continent’s most promising business hubs.

In the first quarter of 2015, foreign direct investment inflow surpassed $700 million and even though investor confidence is shaky given the uncertainty during and since the 2015 elections, things are expected to pick up once a clear economic direction is put in place by President Buhari.

But despite offering so many opportunities, Nigeria remains one of the worst countries to do business, as data from the World Bank Doing Business report (pdf) shows. The report ranks Nigeria 169 out of the 189 in consideration—essentially unmoved from last year’s 170 rank. Nigeria ranked 39th among the listed African countries.

The report measures the ease of doing business along various parameters such as paying taxes, ease of obtaining construction permits, getting electricity, enforcing contracts, registering property, trading across borders and getting credit.

While Nigeria has strengthened minority investor protection, where it ranks 20 out of the 189 countries, it still has numerous problems to contend with. Starting a business is a cumbersome process with inefficient business registration processes and new businesses are often tied up in layers of government bureaucracy with many resorting to third party agents to help facilitate the process of registering a business. Accessing credit and getting electricity also remain low-scoring parameters in the World Bank report and it does not much better in Africa’s other top economies.

Country
Global ranking
Nigeria
169
South Africa
73
Egypt
131
Algeria
163
Angola
181
Morocco
75
Libya
188
Sudan
159
Kenya
108
Ethiopia
146
Data: World Bank

Overall, Mauritius, which is often promoted as a tax haven,  is the highest ranked African nation (32) with good ratings on enforcing contracts and paying taxes.

Country
Global ranking
Mauritius
32
Rwanda
62
Botswana
72
South Africa
73
Tunisia
74
Morocco
75
Seychelles
95
Zambia
97
Namibia
101
Swaziland
105
Data: World Bank

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