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Afrinvest cautions FG on World Bank’s EoDB ranking

Afrinvest Plc has tasked FG to aim beyond improving the country’s Ease of Doing Business (EoDB) ranking, if it hopes to attract Foreign Direct Investment.



Afrinvest, Foreign Direct, Ease of Doing Business, World Bank

Leading investment banking firm, Afrinvest Plc, has tasked the Federal Government to aim beyond merely improving the country’s Ease of Doing Business (EoDB) ranking, if it hopes to attract Foreign Direct Investment (FDI).

Factors that boost FDI: According to analysts at Afrinvest Plc, luring Foreign Direct Investment into the country would also require pro-business regulations, accommodating monetary and fiscal policies. The analysts also believe that doing the aforementioned would add value to Nigeria’s standing on the World Bank‘s business environment index report.

Putting these policies in place is as significant as topping Nigeria’s previous position on the Ease of doing business report. Nairametrics had reported that Nigeria dropped on the list after climbing 24 places in 2017.

“This is because a higher EoDB ranking is not sufficient for increased investment. To attract investment, we believe PEBEC and the federal government have to look beyond gains in the ranking as business environment reforms must be complemented by pro-business regulations, accommodative monetary and fiscal policies, and the opening up of sectors to private investment.”

Attaining higher EoDB ranking

Improvement in Nigeria’s ease of doing business will be determined by three factors: reduction in cost, time and procedures in starting and running a business in the country. It is in a bid to achieve this that the Federal Government set up Presidential Enabling Business Environment Council (PEBEC).

Since its inception, the PEBEC has implemented various National Action Plans (NAPs) that are meant to improve Nigeria’s EoDBrank to the top 100. Since 2016, PEBEC has implemented reforms in three phases (NAP 1.0 to 3.0), mainly along the eight core focus areas of World Bank’s EoDB.

Breakdown of NAP performance

Afrinvest’s take: The National Action Plans (NAPs) implemented by PEBEC has failed to takeoff from the performance of the NAP 1.0 which saw Nigeria move up 24 places on the EoDB ranking after achieving 82 percent of its reform targets.

Fluctuating result: The NAP 2.0 and 3.0 have produced below par result which dragged Nigeria down on the ranking. The NAP 2.0 and NAP 3.0 were said to have recorded 52 per cent and 62 per cent respectively, far below the performance of NAP 1.0.

“We observed that the largest improvements were in the earlier phases of the programme, as the initial momentum seems to have waned.

“In the first phase, PEBEC hit the ground running by achieving 82 percent of its reform targets over a 60-day period from February 2017. This led to an improvement in Nigeria’s EoDB ranking by 24 places to 145 out of 190 countries.

“The second 60-day National Action Plan expanded the scope of the reforms to include such areas as selling to government, trade within Nigeria and trading across borders. The reforms achieved a poor success rate of 52 percent.

“These reforms improved Nigeria’s score from 52.03 to 52.89 in the 2019 EoDB rankings, but the country slipped one place to 146 out of 190 countries.

“We suspect that the slow pace of reforms in the second and third phases had a negative impact on the 2019 ranking.”

In order to achieve the target of making the top 100 countries, Afrinvest analysts urged faster and more effective implementation of NAP 4.0 which was launched last week with a timeframe of March to April 2019.


Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Business News

Senate calls for the liberalization of cement policy to crash the price of the commodity

The Senate also tasked the FG on providing more industrial incentives to bring new players into the cement industry.



BUA Cement

The Nigerian Senate has called for the liberalization of Nigeria’s cement policy to boost production and subsequently crash the price of the commodity in the country.

This motion was raised by Senator Lola Ashiru at today’s senate plenary, the senator also tasked the Federal Government on providing more industrial incentives to bring new players into the cement industry, in addition to the liberalization of the cement policy in Nigeria.

Ashiru explained that to reduce the price of cement and in extension, other building materials in the country, the Federal Government needs to provide an enabling operating environment that will encourage new entrants in the country.

The Senate in conclusion called on the FG to provide more industrial incentives and protections such as concessionary loans and larger tax incentives to encourage new entrants and expand the national cement production infrastructure, as this boost in production will lead to a downward review of cement price in Nigeria.

What industry leaders are saying

Earlier this year the founder of BUA Group, Abdulsamad Rabiu, called for the liberalization of Nigeria’s cement policy to boost production and reduce the price of the commodity.

The billionaire philanthropist faulted the belief that Nigeria is self-sufficient in terms of cement production, noting that recent statistics and figures on Nigeria’s population and cement production do not support this status of sufficiency in cement production as stated by some individuals.

He attributed the high price of cement products in the country to the supply gap which exists in the country, as the few producers who currently operate in the country are unable able to meet the country’s huge and growing demand.

The Group Executive Director, Strategy, Portfolio Development and Capital Projects, Devakumar Edwin, explained that the demand and consumption of cement in the nation currently outstrips supply, and this can be pegged on the growth in the country’s population, and the strong appetite for real estate investment and construction in the country.

He revealed that a supply gap of about 40% exists in the country’s cement market and that all players in the industry are working hard to level production with the rising demand in the country.

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Business News

Paypal’s Venmo now permits cryptocurrency trading

Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.



Venmo, a mobile payment service owned by PayPal has announced that it has started allowing users to buy, hold and sell cryptocurrencies on its app. Just like PayPal, Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, and users can carry out transactions with as little as $1 on the app

Founded in 2009, Venmo has over 70 million users and it is one of the most popular payment channels in the US. The payment platform processed around $159 billion in payments last year.

Since the app functions like a social network, adding cryptocurrency will offer a more user-friendly feel for people who love buying and selling crypto.

READ: 28 million merchants to be granted crypto usage on PayPal

As bigger companies show more interest in cryptocurrency, there will be wider adoption of virtual currencies in future. Venmo is the latest payment app that is offering support for cryptocurrency on its platform.

Paypal, the parent company of Venmo is one of the most active companies in the crypto space as it allows users to buy, sell and hold cryptocurrencies in their digital wallets. Paypal users can also spend their coins at millions of merchants globally.

Crypto on Venmo is enabled through PayPal’s partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.

What they are saying

Darrell Esch, Venmo’s Senior Vice President and general manager said “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have.”

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