16 Apr 2026
The Ernest Shonekan Centre (ESC), with support from the Foreign, Commonwealth and Development Office (FCDO) and in partnership with the Policy and Legal Advocacy Centre (PLAC), yesterday in Abuja convened policymakers, legislators, private sector leaders, development partners and civil society actors for the launch and dissemination of the Baseline Report on Priority Legislative Actions to Foster a Business-Enabling Environment in Nigeria.
The event marked a significant step in strengthening Nigeria’s reform agenda by drawing attention to the legislative and institutional actions required to create a more predictable, transparent and investor-friendly business environment.
The 110-page baseline report provides a comprehensive assessment of the legal, regulatory and institutional barriers constraining businesses in Nigeria and outlines priority actions needed to accelerate economic growth, improve investor confidence and strengthen the country’s competitiveness.
In his opening remarks, the Governance Adviser of the FCDO, Dr Matthew Ayibakuro reaffirmed the organisation’s commitment to working with regional partners, civil society and the private sector to support reforms that unlock growth, deepen accountability and deliver tangible benefits for Nigerians.
He noted that the report goes beyond identifying existing challenges and instead offers a practical roadmap for translating research findings into concrete legislative and policy reforms.
Following the opening remarks by the FCDO Governance Adviser, the Chairman of the ESC, Mr Kyari Bukar delivered his address, expressing sincere appreciation to all stakeholders for their dedication and collective efforts in ensuring the success of the event. He commended their commitment and underscored the importance of sustained collaboration and continuous support in advancing the Council’s objectives.
The event underscored the broader macroeconomic pressures facing the country, including high inflation, exchange-rate volatility, rising debt levels and weak productivity. While recent reforms such as the removal of fuel subsidies and the harmonisation of exchange rates were acknowledged as necessary steps, stakeholders agreed that these measures must be supported by stronger legal and institutional frameworks to ensure long-term impact.
KEY FINDINGS FROM THE BASELINE REPORT
Presenting an overview of the report, Dr Oluwasola Omoju a private Research Consultant explained that the study adopted a mixed-methods approach, combining a doctrinal review of laws and regulations with quantitative analysis of economic data and existing literature.
The findings reveal that many of the challenges facing Nigeria’s business environment stem from gaps within the legal and regulatory framework, including conflicting and outdated laws, overlapping mandates among government agencies, weak enforcement of regulations, limited transparency in legislative and regulatory processes, inadequate stakeholder engagement, and policy inconsistency with frequent reversals.
The report notes that overlapping institutional responsibilities continue to create uncertainty for businesses, increase compliance costs and weaken the effectiveness of reforms. Participants observed that some agencies with similar or conflicting mandates create confusion not only for investors and businesses but also for the institutions themselves.
The study further identified several practical constraints affecting businesses, including foreign exchange volatility, insecurity, poor infrastructure, high operating costs, limited access to finance and persistent regulatory bottlenecks.
According to the report, these challenges continue to undermine Nigeria’s attractiveness as an investment destination despite recent reform efforts.
MACROECONOMIC TRENDS AND REFORM EFFORTS
The report situates these institutional weaknesses within the context of Nigeria’s recent economic performance. It notes that the economy contracted by 1.92 per cent in 2020 largely due to the effects of the COVID-19 pandemic. Although growth has gradually recovered since then, the structure of the economy has shifted away from oil and gas towards services and manufacturing.
The report also highlights that inflation and exchange-rate pressures have remained key concerns for businesses, even as some stability has emerged in recent months. Rising public debt and the increasing cost of debt servicing were identified as additional risks that could limit the government’s ability to support long-term development.
Despite these challenges, stakeholders acknowledged that Nigeria has made progress in several important areas. Reforms such as the Petroleum Industry Act, the Electricity Act 2023, tax reforms and efforts to decentralise investment in the power sector were cited as important milestones in improving the operating environment for businesses.
However, participants stressed that many of these reforms remain vulnerable in the absence of strong legislative backing and effective implementation mechanisms.
PRIORITY LEGISLATIVE ACTIONS
The report recommends a set of immediate and medium-term actions to strengthen Nigeria’s business environment. These include:
- Harmonising conflicting laws and clarifying the mandates of regulatory agencies;
- Strengthening the independence and capacity of regulatory institutions;
- Improving enforcement and accountability mechanisms;
- Enhancing transparency and stakeholder participation in legislative and regulatory processes;
- Establishing technical committees to drive fast and measurable reforms; and
- Using existing institutional structures to ensure continuity and effective implementation.
Stakeholders agreed that reform efforts must be collaborative, evidence-based and sustained over time. They emphasised that the report should not be viewed as an end in itself, but rather as a foundation for continued engagement between government, the private sector and development partners.
Looking ahead, the Launch and Dissemination of the Baseline Report on Priority Legislative Actions to Foster a Business-Enabling Environment in Nigeria represents an important milestone in the country’s ongoing effort to strengthen its economic and institutional foundations.
By identifying the root causes of business environment challenges and proposing practical legislative solutions, the report provides a credible framework for action. It also reinforces the importance of ensuring that reforms are not only well-designed, but also supported by effective institutions, strong stakeholder ownership and sustained political will.
As Nigeria continues to pursue economic transformation, the implementation of the report’s recommendations will be critical to creating a business environment that supports investment, enterprise growth, and inclusive prosperity.
ESC remains committed to working with its partners to advance these reforms and to ensure that the findings of the report translate into meaningful change for businesses and citizens across Nigeria.
Faith Yabkwa is an intern at the Nigerian Economic Summit Group (NESG).