A 3-year trended result from the Business Leaders Perception Survey (BLPS) conducted by NOIPolls in 2009, 2010 and 2012 has revealed top list critical factors limiting Nigerian businesses.
They are power, security, corruption and access to finance.
In addition, other factors identified from the studies include roads, water, multiple taxes and smuggling, that also make doing business difficult in Nigeria.
These are the key findings from the Business Leaders Perception Survey conducted by NOIPolls in collaboration with the DFID Nigeria Programme- Enhancing Nigerian Advocacy for a Better Business Environment (ENABLE).
NOIPolls is the number one for country-specific polling services in the West African region, which works in technical partnership with the Gallup Organisation (USA), to conduct periodic opinion polls and studies on various socio-economic and political issues in Nigeria.
NOIPolls recalled that in World Bank “Doing Business Report” 2013 Nigeria ranks 131st on the list of 185 countries in terms of ease of doing business.
The report explains the ranking of economies on the basis of how easy it is to undertake business activities, from 1 – 183. A high ranking on the ease of doing business index means the regulatory environment is more conducive to start and operate a local business.
This index averages the country’s percentile rankings on 10 topics, made up of a variety of indicators, giving equal weight to each topic.
The rankings for all economies are then benchmarked to the previous year1. The indicators used in ranking the economies include: ease of starting a business, dealing with permits, getting electricity, registering property, getting credit, paying taxes and protecting investors amongst others.
The Nigerian business environment has been associated with several factors limiting business operations and hindering the ability of businesses to thrive compared to their counterparts in other business environments.
While it is common knowledge that improvements in the enabling environment can lead to higher investments, wealth generation, job creation and ultimately poverty reduction; however, improving the business environment is not always an easy endeavour.
It requires cooperation and dialogue between the public and private sector. To make the biggest impact, government and the organised private sector need to work together in order to understand and prioritise the factors limiting business success in the economy.
In view of this, NOIPolls in collaboration with DFID/ENABLE has been conducting a series of Business Leaders Perception Survey over the past few years in order to gauge the perceptions of Nigerian business leaders on the business environment with the aim of understanding the factors that are important to the success of business and those that make business difficult in the country.
In order to explore the factors that affect the business environment and make business difficult, respondents were asked to indicate the factors that make doing business “very difficult”, “somewhat difficult”, “had room for improvement” or “was not a problem at all”.
These were then scored as follows: 1 – not a problem; 2 – could be improved; 3 – makes doing business somewhat difficult; and 4 – makes doing business very difficult.
Findings revealed that the major factor that makes business difficult in Nigeria is Power. This was consistent for all three years, however, the level of difficulty that power imposed on business decreased from 3.7 in 2009 to 3.4 in 2010 and increased to 3.5 in 2012. Corruption which was another factor that was identified for imposing difficulty on businesses continued to rise as the years progressed. The level of difficulty it imposed on business increased greatly from 1.1 in 2009 to 2.6 in 2010 and to 3.2 in 2012.
Furthermore security and access to finance are other factors that make business difficult as identified by the respondents. While security increased from 2.4 in 2009 to 2.6 in 2010 and 3.2 in 2012, access to finance also increased from 2.5 in 2009 to 2.7 in 2010 to 3.1 in 2012.
Road was another factor that was identified as factor that impose difficulty in business. The level of difficulty it imposed in business decreased in 2009 from 2.8 to 2.6 in 2010 and increased to 3.1 in 2012. Generally all the factors identified experienced varying level of deterioration from 2009 to 2012.
Subsequently respondents were asked to rank the identified factors that make business difficult in order of priority.
Ranking the factors that make business difficult in Nigeria revealed that power which topped the chart as the major factor that causes difficulty in 2009 and 2010 was ranked third in 2012.
Road which was ranked second in 2009 became of less importance in the preceding years as it was ranked sixth in 2010 and 2012 .
In addition corruption which was ranked third in 2009 became second in 2010 and became of priority in 2012 as it topped the chart. In addition, finance which was perceived to impose less difficulty in 2009 rose to third place in 2012.
All factors with the same colour code on the graph were ranked equally in the respective years the survey was conducted.
NCC Threatens Illegal Users of GSM Boosters with Arrest, Prosecution
Nigerian Communication Commission (NCC) has warned telecom consumers to desist from using illegal GSM boosters.
The commission also said that anyone caught using a GSM booster without obtaining approval of a duly licensed network operator will face arrest and prosecution.
GSM boosters are devices that transmit and receive telecommunications signals and can therefore interfere with other radio frequency equipment.
Ikechukwu Adinde, director, public affairs, NCC, said in a notice published on NCC website, that only licensed network operators are allowed to use GSM boosters.
The booster, also known as amplifier or repeater is made up of three main elements – exterior antenna, amplifier, and interior antenna.
They form a wireless system to boost cellular reception
“Members of the public should note that, willful interference with any wireless telegraphy is an offence under Section 16 of the Telegraphy Act, 2004,”it said
The agency said it will not condone any flagrant breach of this law.
It has also enforced measures to prosecute offenders.
Accordingly, monitoring mechanisms have been put in place and anyone caught using a GSM booster without obtaining approval of a duly licensed network operator will face arrest and prosecution.
“Any member of the public with useful information regarding the illegal use of GSM Boosters should contact the Commission on 09-4617000/7351 or send an email to [email protected],” the notice said.
“Individuals desirous of using GSM Boosters should note that they can only do so in conjunction with licensed network operators,” it added.
Tizeti Selects Nokia to Provide LTE Fixed Wireless Access Solution for High-Speed internet Services in Nigeria
Tizeti announced that it selected Nokia’s Fastmile Long Term Evolution (LTE) technology to enable usprovide superior internet services to over 1 Million subscribers in Port Harcourt, Edo and Ogun in Nigeria.
Tizeti will deploy Nokia’s AirScale Base Station TDD-LTE and FastmileFixed Wireless Access (FWA) gatewaysto deliver premium internet and Virtual Private Network (VPN) services to Residential, Small and Medium Enterprises (SMEs).
The solution will also enable Tizeti’sto deliver a more robust, high-speedinternet service to subscribers and the flexibility to seamlessly evolve to 5G Fixed Wireless Access when needed.
Nokia’s FWA solution enables Tizeti to fast-track broadband access and provide a best-in-class broadband experience to its subscribers.
Nokia’sAirScale Base Stations ensure high-quality connectivity and coverage and enablesTizeti to evolve the network in line with customer demand.
Nokia’sFastmilegateways connect wirelessly to the existing network to createa fastbroadband connection and enhanced Wi-Fi experience in the home.
The Nokia Network Services Platform will help Tizeti to simplify operations and quickly respond to changing market demands.
Kendall Ananyi, Tizeti, said:“We are committed to providing the best-in-class network experience to our subscribers. We are confident that Nokia’s proven technology and expertise will help us differentiate our services based on quality. This a crucial project for us as it introduces LTE in our networks and allows us to bring new and innovative services to our subscribers.”
Eniola Balogun, Nokia, said:“We are thrilled to work with Tizeti on the initiative to upgrade their network to bring the latest products and services to its subscribers. Nokia Fastmile will help Tizeti to cost-effectively enhance the customer experience.
The project will also enable them to delight their subscribers by providing more reliable data services.
On the other hand, Tizeti will benefit by adding new revenue streams.”
Risk Assets Push Higher on Vaccine Hopes; Eyes on the Fed
By Hussein Sayed, Chief Market Strategist at FXTM,
After two consecutive weeks of back-to-back declines, global stocks kicked off Monday with solid gains amid a surge in M&A activity and positive signs towards vaccine developments. Currency markets were little changed ahead of a busy week of monetary policy announcements, while Oil and Gold ticked slightly higher.
The two big deals announced over the weekend were Softbank’s plan to sell chipmaker ARM to Nvidia for more than $40 billion and Gilead Sciences to acquire Immunomedics for a price tag of $21 billion. Meanwhile, on the vaccine front, AstraZeneca resumed its phase-3 trial on Covid-19 after being suspended last week following a neurological illness developed in one participant, and Pfizer announced that its vaccine could be distributed before year-end if found safe and effective.
Central Banks will take centre stage this week with the Federal Reserve, Bank of England and Bank of Japan all due to announce policy decisions. Out of the three meetings, the Fed is likely to be the most watched following its historic shift towards average inflation targeting. The big question remains how will the FOMC put this policy into action?
From what we know now, the Fed is set up to keep interest rates near zero for a long time, possibly for several years. Given the new framework, any spike in inflation won’t translate into immediate rate hikes as the Fed wants to compensate for the lost years when they have failed to hit the target. The dot plot will be the key guide for investors and traders alike. If inflation projections remain at 2% or below for the foreseeable future, this will solidify market expectations for a low rate environment for many years to come. That said, Jay Powell would still have to explain in more detail how the new framework will be translated into policy action.
In June’s economic projections, the Fed anticipated unemployment would be at 9.3% by year-end, but, in August, unemployment was well below that forecast at 8.4%. Many other economic data surprised to the upside during the June – August period in a clear sign that most economists were overly pessimistic towards the strength of the recovery. However, there is still a considerable amount of uncertainty given the latest surge in Covid-19 cases worldwide and the US, especially as we get closer into the winter season. A second wave will undoubtedly put the recovery at risk in the final quarter of the year and it will be interesting to see the Fed’s view on that issue.
As for the market selloff over the past two weeks, the Fed isn’t likely to show any signs of concern. In fact, policymakers should be satisfied with the pullback as the risk of a bubble in several assets has been growing due to the Fed’s extremely accommodative policies. Unless we see another 10 -15% drop, do not expect the Fed to intervene.
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