There is still more to do to shore up investor confidence
Nigeria has consistently ranked poorly in relation to other economies on the ease of doing business. Between 2008 and 2016, it averaged 145, climbing to an all-time high of 170 in 2014. In the latest World Bank ranking, there was still no cause for cheer: Nigeria placed 169 out of 189. The country improved by just one point from its position last year.
This was a far cry from what President Muhammadu Buhari had envisaged for the country. ‘‘We are committed to moving up the ranking of the World Bank’s ease of doing business index 20 places in first year and be in the top 100 within the next three years,’’ President Buhari said last August. Perhaps to shore up that optimism, the Nigeria Immigration Service (NIS) last week reviewed the visa processes for foreigners and indeed for our nationals. This was aimed, according to Lai Mohammed, Minister of Information and Culture, “at removing some bureaucratic bottleneck for persons who wish to visit Nigeria for business and to promote tourism.”
The measures fit into the national action plan for ease of doing business in Nigeria which was approved recently by the Presidential Enabling Business Environment Council (PEBEC). Indeed, part of the terms of reference of that committee include facilitating easy registration of businesses, fast-tracking processes of clearing goods at the port, obtaining Nigerian visa, paying taxes and obtaining land titles, among others, issues that are mostly key to the annual ranking of the ease of doing business by the World Bank.
However, as we have long argued on this page, the World Bank report is often restrictive as it focuses primarily on measuring the regulation and red tape relevant to the life cycle of a domestic small to medium-size firms. It does not measure some aspects that are also critical to investment decisions like the level of security, macroeconomic stability, corruption, labour skills of the population, underlying quality of institutions and infrastructure, the strength of the financial system and predictability of policies.
Why will anyone invest in a country that offers few benefits and many risks? Why will anyone, for instance, invest in a country when such investments are perpetually at risk because of insecurity? Why will an investor rush to an environment where he will have problem recouping his income because of flip –flop policy on foreign exchange? Or to a place where he cannot count on the courts for protection? Why will someone take his money to an environment, no matter the ease of visa, with little or no infrastructure, worsened by improper maintenance? Only last week, the acting President, Prof. Yemi Osinbajo was shocked by the degree of decay of facilities when he visited the Murtala Muhammed Airport, Lagos, the international gateway to Nigeria. Even toilets were in bad shape!
Sadly too, last week, Dr Randy Mckinney and Lana Mckinney, two Americans on motorbike expedition to Nigeria were seriously embarrassed by the conduct of our immigration officials at the Seme border.
“Crossing the Nigerian border from Republic of Benin was one of the most horrendous nightmares we have ever experienced,” said Mckinney. “We spent N125,000 to cross into the country despite having all our complete documents. If they look at your passport, you must give them money to get it back.”
There are other reasons to worry. Promotion of tourism is an essential counterpart of the new policy. For all the noise about economic diversification, the National Parks –crucial sources of foreign exchange – are in decrepit state and left unattended to. They have become haven for criminals and poachers of wildlife.
We welcome the new visa policy. But there is still much to do to shore up investor confidence in our country.
