Nigeria business environment quite challenging – CIPE

The Nigerian business environment has been described as very challenging by the Centre for International and Private Enterprises (CIPE) in a forum organised for business operators in Lagos recently.

The centre is working in Nigeria with private sector organisations like business and professional associations, particularly at the local level. These associations decry the challenging nature of the Nigerian business environment in which they are operating in this forum. Some of the notable challenges, according to them, are the well-known erratic power supply. They are however aware that the government is making frantic efforts to ensure that this challenge is addressed, but the situation is becoming almost unbearable.

Currently, many small businesses use up to six generators. When embarking on huge production line, they use giant generators, which use diesel with very high costs. The operators also complain of market challenges and security problems. “All of that is really adding up to business costs and there are barriers in the market, adding to their challenges,” said Success Nwogu, an official of CIPE.

Another challenge, according to Nwogu, is security, saying a very conducive business environment should be such that a business operator will do his business unmolested. “It should be such that the security of his life, investment, property and family are guaranteed. We do not need to operate in fear or uncertainty. A situation where the security is challenging does not augur well for business. It makes business environment harsh and uncomfortable,” she said.

Concerns were expressed at the forum that an unsecured environment drives away foreign investment. “Insecurity and inadequate infrastructure add to make costs of business high, and it becomes very difficult to attract foreign investments,” she noted further. Another concern expressed was the cost of capital, as many business organisations and entrepreneurs complain that the cost of capital was very high.

The CIPE assured that it would continue to support private sector organisations in the country, which it has been doing since 2008, as its mission is to promote market-oriented reform around the world. It has offices in most regions of the world. In Africa, CIPE works not only in Nigeria, but has partners in Ghana, Liberia, Cote d’ Ivoire, Mali, Kenya, Ethiopia, Uganda, South Africa, and several other countries.

By: Deborah Igbinedion