Unstable power supply, lack of access to finance, high cost of financing businesses, high taxation, poor infrastructure, corruption and macroeconomic environment have been identified as some of the reasons for poor investment in Nigeria.
The Country Director, World Bank in Nigeria, Onno Ruhl said the above reasons were largely responsible for the poor performances of Nigerian firms compare to their counterparts in Kenya, Russia and South Africa.
Ruhl spoke at the presentation of Nigeria 2011 Investment Climate Assessment Key Findings in 26 states of the federation, held in Benin City, Edo State capital on Thursday.
The World Bank representative explained that the assessment was a diagnostic instrument to assess the policy infrastructure at the federal and states level, adding that the survey was carried out in over 3,157 businesses in 26 states including Edo State.
According to him, electricity remains a major constraint to businesses in Nigeria, affecting all categories of firms.
He said about 83 percent of the firms identified electricity as a serious obstacle to their growth.
“Corruption and transportation were also serious concerns for many firms in Nigeria. Over 1/3rd of the managers said that these were serious problems. Bribes and product lost while in transit are also high in Nigeria. Manufacturing firms reportedly paid an average of 3.2 percent of sales in bribes and losses during transit are equal to 2.4 percent of sales.
“Inefficiencies in the business environment impose a huge indirect cost on manufacturing in Nigeria.The cost of doing business is twice as high for firms in Nigeria as they are for firms in South Africa, Brazil, Russia and Indonesia”, he said
The Country Director, World Bank in Nigeria, Onno Ruhl said the above reasons were largely responsible for the poor performances of Nigerian firms compare to their counterparts in Kenya, Russia and South Africa.
Ruhl spoke at the presentation of Nigeria 2011 Investment Climate Assessment Key Findings in 26 states of the federation, held in Benin City, Edo State capital on Thursday.
The World Bank representative explained that the assessment was a diagnostic instrument to assess the policy infrastructure at the federal and states level, adding that the survey was carried out in over 3,157 businesses in 26 states including Edo State.
According to him, electricity remains a major constraint to businesses in Nigeria, affecting all categories of firms.
He said about 83 percent of the firms identified electricity as a serious obstacle to their growth.
“Corruption and transportation were also serious concerns for many firms in Nigeria. Over 1/3rd of the managers said that these were serious problems. Bribes and product lost while in transit are also high in Nigeria. Manufacturing firms reportedly paid an average of 3.2 percent of sales in bribes and losses during transit are equal to 2.4 percent of sales.
“Inefficiencies in the business environment impose a huge indirect cost on manufacturing in Nigeria.The cost of doing business is twice as high for firms in Nigeria as they are for firms in South Africa, Brazil, Russia and Indonesia”, he said
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