Abuja, Lagos Ranked Best Destination to do Business in Nigeria, Ondo Ranked Worst
Abuja has been ranked the number one destination to do business in Nigeria in 2018,. Nigeria’s commercial capital, Lagos, is the second best state to do business while Enugu is third on the ranking.
The World Bank has released the fourth sub-national report of its Doing Business Series in Nigeria tagged Doing Business in Nigeria 2018. The report ranks FCT Abuja as the best place to do business in Nigeria, with a DTF score of 85.61 to top the Starting a business category.
What the report is all about
The Doing Business in Nigeria 2018 compares business regulations in 36 states and FCT Abuja and measures progress in the states since 2014 in four regulatory areas:
Starting a new business
- Dealing with construction permits
- Registering property
- Enforcing contracts
Measures of regulatory quality in the latter three indicators are also incorporated in the report. The report points out that 29 states implemented 43 reforms across the four bench marked areas, making it easier for local entrepreneurs to start and operate a business in the states.
Starting a New Business
Abuja topped as the number one destination to do business in Nigeria in 2018, with a DTF score of 85.61. Nigeria’s commercial capital, Lagos, is the second best state to do business with a DTF score of 83.67 while Enugu is third on the ranking with a DFT score of 81.70. Ogun, Kaduna, Katsina, Kano and Rivers followed in that order with DTF scores of 81.69, 81.43, 80.14, 79.73, 79.47 respectively.
According to the World Bank report, the worst state to do business in Nigeria in 2018 is Ondo State with a DTF score of 71.04. Adamawa followed with a DTF score of 71.96 while Osun is the third worst state to do business with 72.48.
Most reforms were federally driven in the area of starting a business, and most were focused on the efficiency of processes rather than the quality of regulations.
Dealing with construction permits
Niger State topped the list of states, when it comes to dealing with construction permits, as it was ranked number one among the 36 states and FCT with a DTF score of 79.71. Construction permit takes 11 procedures and 53 days, at a cost of 3.9% of the warehouse value in the state. Kano State is second with DTF score of 79.38 while Jigawa (where it takes only 33 days to secure construction permit) is third with DTF score of 79.06.
Lagos State was adjudged as the worst place to secure construction permit in Nigeria, with DTF score of 51.37, followed by Rivers State with 53.21 while Zamfara is the third worst state with 58.26 DTF score.
Meanwhile, when it comes to registration of new property in Nigeria, Kaduna topped with a DTF score of 45.72 while Zamfara was second with 37.39 DTF score. Jigawa was third best state with 36.79.
In the same vein, if you want to register a property, Cross River should be the last on your mind, as the state is ranked as the worst state in this category with DTF score of 0.00 while Rivers is the second worst with 16.31 and Kebbi emerged third with 17.09.
If you are thinking of enforcing contracts, Kaduna state may be the place to go, as the state emerged top in that category with 65.10 DTF score. Bauchi is ranked second in enforcing contract in Nigeria with 63.99 while Jigawa is third on the list with 63.14 DTF score.
Also, if you want your contracts to be enforced, you may have to move far away from Imo State. it was the least state to enforce contracts throughout Nigeria in 2018 with 43.25, according to the Doing Business in Nigeria 2018 report by the World Bank. Ebonyi State closely followed with 44.28 while Cross River is third with 47.69 DTF score.