By Osagie Otabor 16 hours 19 minutes ago

Unstable power supply, lack of access to finance, high cost of financing businesses, high taxation, poor infrastructure, corruption and macroeconomic environment have been identified as some of the reasons for poor investment in Nigeria.
The Country Director, World Bank in Nigeria, Onno Ruhl said the above reasons were largely responsible for the poor performances of Nigerian firms compare to their counterparts in Kenya, Russia and South Africa.
Ruhl spoke at the presentation of Nigeria 2011 Investment Climate Assessment Key Findings in 26 states of the federation, held in Benin City, Edo State capital on Thursday.
The World Bank representative explained that the assessment was a diagnostic instrument to assess the policy infrastructure at the federal and states level, adding that the survey was carried out in over 3,157 businesses in 26 states including Edo State.
According to him, electricity remains a major constraint to businesses in Nigeria, affecting all categories of firms.
He said about 83 percent of the firms identified electricity as a serious obstacle to their growth.
“Corruption and transportation were also serious concerns for many firms in Nigeria. Over 1/3rd of the managers said that these were serious problems. Bribes and product lost while in transit are also high in Nigeria. Manufacturing firms reportedly paid an average of 3.2 percent of sales in bribes and losses during transit are equal to 2.4 percent of sales.
“Inefficiencies in the business environment impose a huge indirect cost on manufacturing in Nigeria.The cost of doing business is twice as high for firms in Nigeria as they are for firms in South Africa, Brazil, Russia and Indonesia”, he said

http://www.thenationonlineng.net/2011/index.php/news-update/15514-why-investors-shun-nigeria-by-world-bank.html

And we all know dat behind dis phenomenon of backwardness is Tribalism and disunity. Address dat and all the other problem will just be a matter of time for completion. A divided house can not stand.

Nigerian leaders are only interested in lining their own pockets and don't give a damn about the country. However the problem is not limited to them, and the citizens themselves would do exactly the same thing if they are in the same position. How can you attract investors to your country, when you don't care about it? Nigeria has been a sick joke in international circles for years and it will take a complete change of attitude and policies for the country to be turned around. Basically we are our own worst enemies.

@op coming from u.one wud think u were an example of a detribalised nigerian.smh

The irony never ceases to amaze me. On the one hand, you have the hardworking, resourceful, never-say-die Nigerian. On the other, you have Nigeria: a country  so inefficient, bloated and inept! How it is the resourceful Nigerian and the inept Nigeria can't get things working continues to puzzle me. It does appear the average Nigerian is often ahead of his society. Well, we just might have to make a mental note to distinguish between Nigerians, and Nigeria as a country. Still doesn't explain the disparity though.

Corrupt Politicians have destroyed our country. Talk about Nigeria here in Canada, people will run from you. Too Bad

These are just some issues of hinderance to the nigerian success. After all the key notes they pointed out, we still have some serious issues of greed; Land laws (my opinon is that the federal govt should own all the land in nigeria and everyone that owns a house on any land in nigeria should pay a tax and also depending on land size of the house should even pay more monthly taxes without expecting any tax return. So nigeria can minimize the issue of unneccessary inheritance of land properties); and traditional chiefs everywhere (stop this fakeness and madness or risk tribal hinderance that inhibits growth).

Please we all should keep praying for the country, and those in the helm of affairs (GEJ especially)

God bless Nigeria

What do you expect from the world bank representative?

No single project carried out by the world bank has benefited the people of Nigeria.  The way the contracts are structured makes it completely difficult to achieve any tangible result and it creates room for corruption. Only one man does the vetting.

Do we need the world bank? I will say no. The reason being that the current world bank is not created to serve the interest of any developing economy.  China never waited for world bank, in fact world bank predicted that chinese economy will collapse, now see what is happening!

I do not need any world bank representative to come and tell me the state of doing business in Nigeria in fact I blame those that ventured to grant these obnoxious people audience.

Changing the country and improving the infrastructure is a matter of our attitude as a people.

when is even difficult for Nigerians to start a business talk less of a foreign firm. forget, our government is a joke.

Imagineers:

What do you expect from the world bank representative?

No single project carried out by the world bank has benefited the people of Nigeria.  The way the contracts are structured makes it completely difficult to achieve any tangible result and it creates room for corruption. Only one man does the vetting.

Do we need the world bank? I will say no. The reason being that the current world bank is not created to serve the interest of any developing economy.  China never waited for world bank, in fact world bank predicted that chinese economy will collapse, now see what is happening!

I do not need any world bank representative to come and tell me the state of doing business in Nigeria in fact I blame those that ventured to grant these obnoxious people audience.

Changing the country and improving the infrastructure is a matter of our attitude as a people.

You said it all. China doesn't look at their side at all.

That kind of organisations are for Oyinbo people.

Thanks ekt but do we need world bank to tell us this, No? even a blind man in Nigeria can smell the problems.

Suggested solution would have been more appropriate in this regard. All government agencies are more corrupt than corruption itself and anti graft agencies are their puppets. The crop of politicians we have in NA are opportunist with nothing to offer.

I am in support of any form of government that will limits the powers and resources that accumulate to the federal government.

Thanks for stating the obvious fact, World Bank.

Nonsense. Who doesn't know this?

Corruption, tribalism, visionless leaders and followers etc

ikooko:

Thanks ekt but do we need world bank to tell us this, No? even a blind man in Nigeria can smell the problems.

Suggested solution would have been more appropriate in this regard. All government agencies are more corrupt than corruption itself and anti graft agencies are their puppets. The crop of politicians we have in NA are opportunist with nothing to offer.

I am in support of any form of government that will limits the powers and resources that accumulate to the federal government.

My sentiments exactly.  However the difficulty with this idea, is the same as that of asking turkeys to vote for Christmas, or Boko Haram to send all their children to school. Another way forward, is for Nigerians to start holding their leaders accountable and raising hell if their expectations are not met.

NEPA is Naija's no.1 curse. Cost of production doubles or even triples when u use generators 2 generate yr own electricity. Even as a Nigerian it is wiser to invest in a company operating in Ghana where deres constant electricity to get good returns on investment. so sorry ill pass

nrd_geek:

The irony never ceases to amaze me. On the one hand, you have the hardworking, resourceful, never-say-die Nigerian. On the other, you have Nigeria: a country  so inefficient, bloated and inept! How it is the resourceful Nigerian and the inept Nigeria can't get things working continues to puzzle me. It does appear the average Nigerian is often ahead of his society. Well, we just might have to make a mental note to distinguish between Nigerians, and Nigeria as a country. Still doesn't explain the disparity though.

Now, that's easy enough. It is a case of individual brilliance and collective stupidity. A group of workers with average IQs working together towards a common goal, will always achieve more than a similar group of Phd holders, quarrelling among themselves, instead of focussing on the job at hand.

Bliss4Lyfe:

And we all know dat behind dis phenomenon of backwardness is Tribalism and disunity. Address dat and all the other problem will just be a matter of time for completion. A divided house can not stand.

You are very right. If we want Power, what prevents us from establishing enough Power plant in Niger Delta where it will be close to the raw materials.

We want to share it to all regions even when we know it is waste of money. Nonesense.

We are not ready to solve power problem otherwise we will choose a state say Bonny Island where we have the gas and build all our power plants and link it to National grid.

Tribalism is why we are this backward. Nobody wants to reason well. Imagine a country going to site hydro plant in a desert, such is similar to building gas turbines in north and west where there is no gas (stupid politics) and expect the plant to run (may be African Magic can happen)

ikooko:

Thanks ekt but do we need world bank to tell us this, No? even a blind man in Nigeria can smell the problems.

Suggested solution would have been more appropriate in this regard. All government agencies are more corrupt than corruption itself and anti graft agencies are their puppets. The crop of politicians we have in NA are opportunist with nothing to offer.

I am in support of any form of government that will limits the powers and resources that accumulate to the federal government.

In my opinion, I think it doesn't matter who drums this into our ears (be it the devil himself) since it appears we have become dull of hearing!

kulutempa:

Now, that's easy enough.  It is a case of individual brilliance and collective stupidity.   A group of workers with average IQs working together towards a common goal, will always achieve more than a similar group of  Phd holders,  quarrelling among themselves, instead of focussing on the job at hand.

I do get your point , 'Individual brilliance and collective stupidity' (Shakes head!) Sometimes I still do wonder in my own fantasy, isn't all we need just a group of renegade politicians whose sole allegiance is to the welfare of the people? I mean like , just chance upon that 4 year mandate and step on whoever's f***in toe you need to step on, and fix just one bloody problem , say power, for instance. Heck , ! and this has to be so difficult!
My apologies, just fantasizing.

sirjec:

You are very right. If we want Power, what prevents us from establishing enough Power plant in Niger Delta where it will be close to the raw materials.

We want to share it to all regions even when we know it is waste of money. Nonesense.

We are not ready to solve power problem otherwise we will choose a state say Bonny Island where we have the gas and build all our power plants and link it to National grid.

Tribalism is why we are this backward. Nobody wants to reason well. Imagine a country going to site hydro plant in a desert, such is similar to building gas turbines in north and west where there is no gas (silly politics) and expect the plant to run (may be African Magic can happen)

or rather than build a refinery in the east, they build a refinery in Kaduna, and run a pipe from the east all the way to Kaduna. Fooooolish!

Imagineers:

What do you expect from the world bank representative?

No single project carried out by the world bank has benefited the people of Nigeria.  The way the contracts are structured makes it completely difficult to achieve any tangible result and it creates room for corruption. Only one man does the vetting.

Stop yapping out of Ignorance . . . . most of the projects, in the last 10 years, suggested by the world bank, have been suggested, and put together for Nigeria, by NIGERIANS working at the world bank. Cut the bull and educate yourself on the real reasons why many of the projects have not, according to you, benefited Nigeria.  

Madam DUE PROCESS, who happens to work at the world bank, broached this issue during one of her interviews and she made it quite clear that the Nigerian system is mostly to blame for the failure of so many well meaning projects. Please pick up information on on some of the projects(much of this is available online for any serious individual to investigate) and learn what the situation really is.

Princek12:

or rather than build a refinery in the east, they build a refinery in Kaduna, and run a pipe from the east all the way to Kaduna. Fooooolish!

Refinery being in the north is not quite a bad idea but not building gas turbine in the north. Why I said refinery isn't a bad idea is that the cost of transporting finished products is higher than the cost of transporting crude oil. So, as long as there the requirement for building refinery like availability of water or stream is met, refinery can be sited in the north but not gas turbine because the cost of transporting gas is much greater than the cost of transmitting electricity besides we already have a national grid.

kulutempa:

My sentiments exactly.  However the difficulty with this idea, is the same as that of asking turkeys to vote for Christmas, or Boko Haram to send all their children to school.   Another way forward,  is for Nigerians to start holding their leaders accountable and raising hell if their expectations are not met.

Why do we have so much corruption in Nigeria? because federation account is our ''Mama Soup'' and we are all entitled to it, yes naturally but the notion is wrong.  When leaders assume office, they sees it as the turn of their state or region to steal from federal purse to be benefit of few rather than contribute to her growth.

Accountability will be more effective if we have fewer subjects to deal with. Remotely it will addressed tribal sentiments. Please note that  you can only talk of accountability when your leader believed is riding under your mandate in the position he occupies if not, you are just another noisemaker; besides, how do you hold Ministry of Agriculture accountable for not supplying fertilizer to farmer in a particular region or Minister of Transportation for ignoring bad federal-roads in your state?

Another advantage is that development will be more nuclear to the advantage of local governments. and it will bring about healthy competition among the states. If there is little or nothing to share from the center, each states will take the path of creativity and self sufficiency in the natural resources in her possession. This will be similar to the economic growth recorded when Nigeria operated regional government.

I still luv naija

Which do you guys (and ladies) think is better:  for  three women  married to a man  in a polygamous relationship, to live with him under the same roof, or for them to live apart at different addresses with their children?  If the husband seeks your advice on the issue, what would you tell him? As it goes for the home so it goes for a country like Nigeria, and also determines investor perceptions on whether they should invest there.  Mind you, I am not necessarily advocating for a break up of the country but the question is whether what we have had since independence is the ideal arrangement for the country's development and progress.

Too Badddd!

hopefully we'll get there

ekt_bear:

By Osagie Otabor 16 hours 19 minutes ago

Unstable power supply, lack of access to finance, high cost of financing businesses, high taxation, poor infrastructure, corruption and macroeconomic environment have been identified as some of the reasons for poor investment in Nigeria.
The Country Director, World Bank in Nigeria, Onno Ruhl said the above reasons were largely responsible for the poor performances of Nigerian firms compare to their counterparts in Kenya, Russia and South Africa.
http://www.thenationonlineng.net/2011/index.php/news-update/15514-why-investors-shun-nigeria-by-world-bank.html

The bolded doesn't sound plausible. MTN, DSTv etc are making a kill in Nigeria in the midst of all these challenges!. At best, Nigeria is high risk, high returns!!!

This report is bullcrap.

ekt_bear:

By Osagie Otabor 16 hours 19 minutes ago

Unstable power supply, lack of access to finance, high cost of financing businesses, high taxation, poor infrastructure, corruption and macroeconomic environment have been identified as some of the reasons for poor investment in Nigeria.

Remove Nigeria, insert India from the report. All of these factors are present in India, Pakistan, Sri Lanka, Bangladesh. In worse dimensions. And you begin to wonder what is really going on.

The Western businesses in Nigeria are responsible for their own high costs. Come to Nigeria with an army of $20k a month expats all living in Ikoyi and Victoria Island with perks up to the nines, including welders and craftsmen. Who resides in all the high rises and penthouses, not to mention hotel suites? All flying back and forth in first and business class for crying out loud. Imagine the OPEX of such a business. SMH.

When you look at telecoms, you begin to wonder if these Westerners are not glorified Ponzi artists. In the early days, we used to sing 'it must be Ericsson, Nokia Siemens or Alcatel Lucent'. They sold us their gear at a premium, even above the prices in Europe and the US.

But guess what, these guys have an 'India price'. They charge rock bottom for the same gear in India, because the revenue per minute is less than a cent, and Indian operators simply will not pay that cost.

Then Huawei showed up, charged a tenth of their price and even said 'you know what, install and use for 5 years without paying'. What has happened since? From 48 naira a minute to 10 naira a minute, and MTN is still cashing out like crazy. Yes, someone will scream 'inferior equipment'. Yeah, but guess what, even if we swap out all our gear every year, we are still turning a far better profit than when we were stuck with the other guys. Now Huawei has the biggest market share of all the equipment vendors, and Ericsson is downsizing.

What's my point? When you want to do business at a premium, you should not complain. It's not isolated to Nigeria. Hotel rooms in, say, Prague, for example, are more expensive than in Lagos. I have no idea why, but any prospective investor in the Czech republic needs to know that, and factor it into their bottom line. I am particularly miffed that these guys get the capital at almost zero interest in the countries, and spend it at a premium in Nigeria - with reckless abandon, mostly on themselves and their army of expensive and inefficient business partners that they always come with. Then they complain that the government wants a good bite of the pie. Why the heck not?

What are we even saying sef? Look at what the oil majors are paying as salaries. Something like N12m a year to Nigerian fresh graduates, in the same country where N18k a month minimum wage is an issue. Does that make sense to you?

Since the 2008 meltdown, apartment complexes have stood empty in Ikoyi and VI. Which is a good thing really. If nobody is spending cash at a premium, the market will adjust.

Nigeria is a s/h/ithole. I dont know how people can live in such a horrible country. Damn thank God for teh west and oyibo peope

The Western businesses in Nigeria are responsible for their own high costs. Come to Nigeria with an army of $20k a month expats all living in Ikoyi and Victoria Island with perks up to the nines, including welders and craftsmen. Who resides in all the high rises and penthouses, not to mention hotel suites? All flying back and forth in first and business class for crying out loud. Imagine the OPEX of such a business. SMH.

Where else do you want them to live? Ojuelegba? Surulere and all those village looking places in Lagos. Why would oyibo people with beautiful; amenities leave their heavenly houses to go to a third world country like naija.

SEFAGO:

Where else do you want them to live? Ojuelegba? Surulere and all those village looking places in Lagos. Why would oyibo people with beautiful; amenities leave their heavenly houses to go to a third world country like naija.

I take it you're just being sarcastic. In fact, I am sure you are.