Oftentimes, I dislike how middle-class Nigerians speak from a position of privilege.
An example is when someone claims that the World Bank is lying for stating that millions of Nigerians live below $5 a day. A typical middle-class Nigerian, residing in an urban area and having limited exposure to different regions of Nigeria, looks around and dismisses the statistics as untrue. They rely on anecdotes about how much money their acquaintances spend on food, security, and clothing. This approach fails to recognize how statistics work. If they were to consult relief workers who travel across Nigeria, they would hear about the untold suffering experienced by Nigerians. The situation is so dire that many have given up hope for a better tomorrow and instead opt to accept bribes of N2000 per vote. When a person is hungry, their concern extends no further than the food in front of them.
This same attitude is prevalent when discussing the business environment. Claiming that it is easier to do business in Nigeria than in other countries disregards the facts on the ground. The Ease of Doing Business ranking is not a superficial index; it objectively assesses the ease of conducting business activities and evaluates the regulations and bureaucratic obstacles faced by businesses in various countries.
The ranking is not concerned with the success of individual businesses. It takes a comprehensive view of all entrepreneurs in the country and evaluates their overall performance in relation to the business environment and regulations, comparing it with global standards.
Ease of doing business is not about waking up and frying akara as some have alluded to. When the tax force comes to cart away the poor woman’s showglass because she is selling on the roadside as a result of her inability to afford a befitting shop, what justice system does she have recourse to? A Nigerian expressed nostalgia for the ability to open a shop to sell kulikuli without encountering any issues from regulators. This dysfunctionality, which Nigerians have tolerated, is being celebrated. Shouldn’t the health authorities inspect the akara before it is sold? When we hear that the life expectancy in Nigeria is 54 years, these factors contribute to it. One should not sell food products to anybody without considering the lives at risk.
Is it a suitable way for young men to earn a living by chasing vehicles in traffic with goods on their heads? This is the kind of self-employment that Nigerians admire. This lawlessness is the reason why some believe operating a business is easier in Nigeria. Someone even said that being in the building industry is as simple as “dropping granite and sharp sand on the road and starting to build.” This is what we celebrate? No wonder substandard practices and building collapses are common here.
In most countries, the system supports businesses by providing grants and support. For most businesses, you can register in a day and start businesses without interfacing with a single soul. A week after starting business, you can get paid for starting a business. The industries that face regulation in these places, which some complain about, are sensitive sectors such as food, health, housing, and financial services. And why not?
In Nigeria, one can wake up and start a Fintech company, collecting funds from investors with minimal oversight. In Singapore, that process is not as easy. Why? Because they have recognized that business is a societal good. While we rely on the goodwill of business owners, New Zealand, ranked number 1 in the Ease of Doing Business globally, ensures that one cannot simply wake up and abscond with investors’ funds. While Nigerians may perceive this as an unfavorable business climate, the hundreds of thousands of Nigerians scammed by Fintech companies and investment schemes view it as a lifesaver. A retiree who lost their N6 million gratuity in Farmforte last month would wish the regulators had been more vigilant. This is part of what it means to be in business.
Last week, I conducted a due diligence visit to a business. The owner informed us that in France, the fashion industry has an incubation program. There are separate incubators for businesses in operation between 1–5 years and those surpassing 5 years. In these hubs, they don’t expect you to go around purchasing online marketing courses. They provide structured classes and guidance on modules such as customer service, bookkeeping, and selling to the international market.
In 2022, 30% of Nigerians remain unbanked, and another portion lacks access to basic banking services. For these people, banks are often distant, requiring intermediaries who make two-day journeys to the nearest ATMs. The stories of hardship endured during the cash crunch, superintended by Godwin Emefiele, are heartbreaking.
Therefore, when Nigeria is ranked 131 on the Ease of Doing Business list, the World Bank is unlikely referring to a college-educated individual who worked in a well-structured and high-paying business environment, building an extensive network and goodwill before venturing into self-employment with numerous privileges to create a successful life. If you were to consult Seth Stephens-Davidowitz, the data whiz, who has extensively studied the profiles of individuals with a high likelihood of business success, he would confirm that such a person would excel in any country. In fact, the higher on the list of Ease of Doing Business the country the person is in, the more likely their success. In other words, you may be balling with the chickens in the garden, but it may be that your true destiny is actually to be gliding with the eagles in the skies. Of course, in all things we should be thankful. I’m just saying that according to available statistics, the odds are that we could have done more with our lives elsewhere. You will never know.
A person who believes that life in Nigeria is satisfactory and poverty is overrated would not actively pursue policies to eradicate poverty if given the opportunity. Similarly, someone who believes that doing business in Nigeria is easier compared to other countries, despite solid evidence to the contrary, is unlikely to lift a finger to improve the process. That’s unfortunate because, in a great country, individuals are not successful unless the society is prosperous. It is the principle of ‘leaving no one behind’.
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