Navigating the business environment in Nigeria has over time been a complex journey, marked by regulatory hurdles and administrative bottlenecks. However, the Presidential Enabling Business Environment Council (PEBEC), established in 2016, has been a game-changer, spearheading reforms to make Nigeria a progressively easier place to do business. In this edition, we’ll explore six key initiatives by PEBEC that are shaping a more compliant, transparent, and thriving business environment in Nigeria.
1. Simplification of Regulatory Processes
PEBEC’s flagship achievement lies in simplifying regulatory compliance for businesses through the National Action Plan (NAP). These action plans, implemented in 60-day cycles , target critical areas such as starting a business, registering property, and obtaining construction permits. Take for instance, the reduction of procedures required to register a business name with the Corporate Affairs Commission (CAC) has led to over 400,000 MSMEs formalising their businesses more swiftly. By making processes predictable and digital, PEBEC has significantly lowered the entry barriers for compliance, especially for small businesses that previously operated in the informal sector.
2. Digitisation of Government Services
A cornerstone of compliance improvement is the ongoing digitisation of government services championed by PEBEC. The launch of the PEBEC App and the ReportGov.NG platform allows businesses to submit complaints about regulatory agencies, creating a feedback loop for continuous improvement. The automation of tax filing with the Federal Inland Revenue Service (FIRS) enables businesses to file returns and pay taxes online, reducing physical interactions and the risk of non-compliance due to bureaucratic delays. This shift to digital service has not only streamlined compliance but also enhanced transparency and trust in government processes.
3. Standardisation of Regulatory Requirements
PEBEC has worked tirelessly to harmonise and standardise regulatory requirements across multiple agencies, reducing confusion for businesses. Through initiatives like the Business Facilitation (Miscellaneous Provisions) Act, 2023, PEBEC mandated that all ministries, departments, and agencies (MDAs) publish service level agreements (SLAs) which specify timelines for service delivery. A practical example is the Nigeria Customs Service’s implementation of clear import/export guidelines, which has helped reduce customs clearance time from weeks to a few days. This clarity boosts compliance as businesses now understand exactly what is required of them and the timelines involved.
4. Promotion of Transparency and Accountability
PEBEC promotes a culture of accountability among regulatory bodies, reinforcing business confidence in the system. The Scorecard Initiative, which publicly ranks MDAs based on customer service and efficiency, holds agencies accountable for delays and inefficiencies The Lagos State Physical Planning Permit Authority (LASPPPA) saw marked improvements after being ranked low in an earlier scorecard, prompting reforms that streamlined permit approvals. By spotlighting performance, PEBEC incentivises agencies to support rather than stifle compliance efforts.
5. Support for MSMEs and Informal Sector Integration
Recognising that MSMEs form the backbone of Nigeria’s economy, PEBEC has prioritised policies that support their transition from informal to formal enterprises. Initiatives like the MSME Clinics, conducted across various states, provide direct engagement between small businesses and regulatory bodies such as NAFDAC, FIRS, and SON. MSMEs receive guidance on licensing, tax compliance, and standards certification. Many small-scale food producers have successfully obtained NAFDAC registration through this platform, enabling them to expand their markets while staying compliant with health and safety regulations.
6. Enabling Access to Credit Through Compliance
By fostering a compliant business environment, PEBEC has indirectly improved access to credit for Nigerian businesses. Formal registration and tax compliance are now prerequisites for accessing financing opportunities from banks and development finance institutions. A notable example is the growing utilisation of the Collateral Registry managed by the Central Bank of Nigeria (CBN), which allows businesses to use movable assets as collateral for loans. The Registry has facilitated over 180,000 financing statements, many from MSMEs that formalised their operations due to PEBEC reforms. This access to credit empowers businesses to scale sustainably within the compliance framework.
Conclusion
PEBEC’s role in enhancing business compliance in Nigeria cannot be overstated. From simplifying processes to empowering MSMEs, promoting transparency, and creating digital solutions, PEBEC is transforming Nigeria’s business landscape one reform at a time. These initiatives are not just improving compliance but are building a more resilient, inclusive, and prosperous economy. As stakeholders, it is imperative we continue to engage with and support these reforms to fully realise the vision of a truly enabling business environment in Nigeria.
