Building Nigeria's global competitiveness

Nigeria's drive towards building a globally competitive economy by removing obstacles obstructing Nigerian businesses is a critical aspect of the country's economic recovery and growth plan. The focus on enhancing the private sector's competitiveness is pivotal in transforming Nigeria's economy and positioning it on the global stage. Nonso Obikili, Project Manager at the National Competitiveness Council of Nigeria, shed light on the strategies and challenges facing the country in achieving this ambitious goal during an interview on CNBC Africa. Obikili emphasized the importance of addressing issues at all levels of governance, from the federal to state and local government levels. While commendable efforts have been made at the federal level to improve the ease of doing business, significant gaps remain at the subnational levels. These gaps pose obstacles for businesses operating on the ground, where state and local regulations often hinder progress. One of the primary challenges identified by Obikili is the state of infrastructure in Nigeria. Inadequate infrastructure not only hampers the movement of goods and services but also drives up costs for businesses. The inefficiencies in the transportation network, coupled with bureaucratic bottlenecks, contribute to the overall challenging business environment in the country. Furthermore, Obikili highlighted the funding issues faced by state and local governments in Nigeria. The over-reliance on informal taxes and levies imposed by agencies poses a burden on businesses, leading to a distorted revenue collection system. Tax reforms are essential to align the tax structure with business outcomes, creating a symbiotic relationship where states benefit from the success of businesses operating within their jurisdiction. In a bid to enhance the business environment and promote competitiveness, Obikili stressed the need for long-term strategies, including tax reforms and infrastructure development. While progress has been made in certain areas, a holistic approach involving collaboration between the public and private sectors is imperative for sustained growth and competitiveness. As Nigeria continues its journey towards economic recovery and growth, tackling the entrenched challenges within the private sector and addressing the gaps in governance at various levels will be crucial in advancing the country's global competitiveness.