For a long time, Nigeria has been an attractive, yet challenging, destination for foreign investors. The process of doing business was often slow and confusing. However, a major new law, the Business Facilitation Act (BFA) of 2023, is changing the landscape by making Nigeria a much easier place to invest and operate a company.
So, two years after this law was passed, how has it actually helped? Let's break it down.
What It Used to Be Like
Before the BFA, starting or running a business in Nigeria could be incredibly frustrating. Government agencies had no fixed deadlines for processing licenses or permits.
This meant an application could be stuck in bureaucratic limbo for months without any clear reason, creating uncertainty and risk.
This lack of clear rules made investing both risky and expensive. Businesses had to navigate a slow and opaque system, which discouraged many potential foreign investors from entering the market.
How the New Law Changed Everything
The Business Facilitation Act was designed to fix these problems by making government agencies more efficient, transparent, and accountable. Here are its most important changes for investors:
1. Automatic Approvals ("Deemed Approval"): This is arguably the biggest change. If you apply for a permit or license and the responsible government agency doesn't respond by the official deadline, your application is automatically considered approved. This is a game-changer because it forces government offices to work on time. No more endless waiting!
2. Clear Rules and Timelines: Government agencies are now required to publish a complete list of all their services, including the necessary requirements, associated fees, and official processing timelines. This transparency makes the process predictable. Before you apply for anything, you know exactly what you need, how much it will cost, and how long it should take.
3. A Single Point of Contact: The law promotes the creation of a single online portal or physical office where businesses can submit and track different applications. This "one-stop-shop" approach means you no longer have to run around to multiple government buildings, saving significant time and energy.
Is It Actually Working?
In theory, the law is fantastic. In practice, its implementation is a work in progress.
Many government agencies have embraced the new rules, becoming faster and more transparent. However, some are still slow to adapt. It's also important to remember that this law can't fix long-standing challenges like infrastructure deficits or economic instability on its own. For the BFA to be fully effective, it needs consistent enforcement and buy-in across all levels of government.
Conclusion: A Big Step Forward
The Business Facilitation Act of 2023 is a strong signal that Nigeria is serious about attracting and retaining investment. It provides investors with a safer, clearer, and more predictable set of rules to follow.
While challenges remain, the law has already made a significant difference by cutting down on delays and making the system fairer. For anyone considering investing in Nigeria, things are now much simpler and more reliable. It's a great reason to take a fresh look at the abundant opportunities in Africa's biggest economy.
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