It turned out that despite Nigeria being in its worst recession in 29 years, the International Monetary Fund (IMF) has recently projected it as Africa’s biggest economy.
It was a bit of a shock considering Egypt had overtaken Nigeria to take the top spot as Africa’s biggest economy just this August.
Although the data by IMF means that Nigeria can continue to hold on to its bragging rights as Africa’s biggest economy, it is necessary to point out that the country is still a terrible place to do business. In fact with its consistently low rankings among countries in most areas of business, everyone who engages and succeeds in business in Nigeria should be seen as super human.
From the World Bank’s Doing Business report, which looks at business across 190 economies, Quartz was able to cull the chart below which shows how Nigeria’s economy ranks across most areas of business in a pool of 190 countries.
The simple deduction from the chart is that the country is one of the worst places to business. For five areas: paying taxes, registering property, trading across borders, getting electricity and dealing with construction permits, the country ranks in the bottom twenty.
In fact, it only shows up in the top 50 on two counts; getting credit and protecting minority investors. Getting credit can, however, go bad real fast when all the other conditions like power, enforcing contracts or even registering property are not in place.
The IMF predicts that the Nigerian economy will grow by 0.6% in 2017, especially if dollar liquidity loosens up, but while the Nigerian government works on that, there is a lot of work to be done in making the Nigerian environment more conducive for doing business.
All the areas listed in the chart are a good place to start and hopefully, the government’s recent engagement of the services of external resource persons to manage the economy will be a boon to the business environment of Nigeria in the coming months.