There was a noticeable decline in the all-state Nigerian business environment Index in 2020, according to the African Heritage Institution’s Business Environment And Competitiveness Across Nigerian States (BECANS) IV report. Specifically, the report stated that “in BECANS IV all-states business environment index was 46.04 per cent, which is lower than BECANS I score of 48.5 percent and BECANS III score of 50.9 per cent, although it was a little higher than BECANS II score of 45.4 per cent. This result is an indication of overall deterioration in the Nigerian business environment showing that the business environment in 2015 was better than in 2019.”
The report, which is the product of a collaboration between African Heritage Institution (AfriHeritage) and the Federal Ministry of Finance, Budget and National Planning since 2006, provides a platform for the generation and dissemination of research evidence on the Nigerian business environment at both national and state levels. Last year’s BECANS report, which is the fourth in the series, shows that the country’s business environment is facing challenges such as low access to finance and information; lack of good transportation systems, lack of energy supply, difficulty in land registration, lack of water supply and inadequate support for policy framework on public private partnership (PPP).
Other issues encumbering the business environment, according to the report, include inadequate support for investment promotion, low promotion for Industrial Parks, difficulty in business registration and inadequate support for skills acquisition and entrepreneurship promotion, lack of transparency in fiscal management and public expenditure, inadequate provision of social infrastructures, delays in commercial dispute resolution, lack of transparency in taxes and fees administration and lack of security.