What are the challenges to doing business in Nigeria?
In 2016, out of 189 countries Nigeria was ranked 169th in the World Bank's Ease of Doing Business Report. This is a very slight improvement compared to the 2015 ranking with improvements in starting a business and protection of minority investors, which placed the country at 170. Nigeria may be in higher-than-average profits for those who are successful, but there are many challenges to overcome before achieving such success Nigeria does score relatively high on the "protecting investors" score, indicating that investors are indeed appreciated. It is worth bearing in mind that Nigerian companies and the wider Nigerian population often encounter significantly more challenges than international companies. One of the most obvious challenges is the power infrastructure. Despite its gigantic population, Nigeria produces less electricity nationally than an Irish city consumes. As a result, everyone is dependent on (diesel) generators, which increases the cost of doing business.
Obtaining permits and licences is a further challenge. Also, despite some federal and state government reforms, corruption remains particularly acute in infrastructure development projects. Less obvious challenges include the chaotic traffic in a city like Lagos, which can mean a limit of 4 meetings per day, the security situation, and mobile phone network coverage.