Investment in Infrastructure is the most problematic factor for doing business in Nigeria

Investment in Infrastructure is a big problem as Nigeria only ranks 24 in Africa in the Global Competitiveness Report 2015/16

The Global Competitiveness Report 2015-2016 by the World Economic Forum assesses the competitiveness landscape of 140 economies, providing insight into the drivers of their productivity and prosperity. The Report series remains the most comprehensive assessment of national competitiveness worldwide.

The most competitive economy in Africa is Mauritius. Worldwide Mauritius ranks 46. That makes Mauritius more competitive than countries like Turkey (51), Vietnam (56) and Mexico (57). As most competitive African economy Mauritius is followed by South Africa, Rwanda, Botswana, Morocco. Striking is the low position of Africa’s giant Nigeria. Only 24th in Africa and 124 worldwide.

Investment in infrastructure has been singled out as the most problematic factor for doing business in Nigeria.

Nigeria Improves by three places to 124th. Last year’s revision of GDP is reflected in an increase in market size (up by eight places to 25th), lower government deficit and debt, and decreased national savings. Improvements in property rights, the efficiency of the legal framework to settle and challenge disputes, and the accountability of the private sector lift the country’s institutions up by five places, albeit remaining low overall (124th).

The picture is mixed on efficiency of the goods market (100th), where a less competitive domestic environment outweighs improvements to encourage foreign competition; the financial market (79th), where banks are rated as relatively sound but access to finance remains problematic; and the labor market, which is one of the region’s most flexible (18th) but is dragged down by an inefficient use of talent (68th) and a comparatively low female participation rate (87th). Priorities include investment in infrastructure (ranking 133rd and singled out as the most problematic factor for doing business) and human capital, where poor health in the workforce (134th) and inefficient higher education (128th) holds the country back from fulfilling its potential.

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